Layer3 (L3)

🤔 What is Layer3?

Layer3 is one of the token distribution protocols with over 3M users, designed to connect newcomers in the crypto space with web3 startups.

It allows blockchain companies to attract new audiences by creating a wide range of quests and tasks, including:

• Social tasks: Projects are able to create various quests related to their social media and track the progress via Layer3;
• On-chain activity: Web3 startups can create tasks related to their product, and track users' performance on-chain.
• Quizzes: Blockchain projects can create various quizzes and educational events to allow users to understand their technology and approach.

To complete the Layer3 quests, users receive XP and mint Cubes and NFTs from crypto projects, which allows blockchain startups to identify the most active community members and reward them accordingly.

🪙 Layer3 token: On June 5th, 2024, the company announced the upcoming release and airdrop of its native $L3 token. According to TheBlock, the main criteria for the airdrop will be the amount of XP and Cubes users acquire when completing quests from other crypto projects.

$L3 will provide users with access to the governance layer of the platform, launchpad, and exclusive features via staking $L3, such as stake-to-earn exclusive quests, a tiered reward system, exclusive incentivized programs, and future airdrop multipliers. 

The protocol has also introduced a few token-burning mechanisms, offering users who participate in such programs various perks across partner ecosystems, as well as enabling projects to post quests on its platform, deploy incentives, and access CUBE credentials.

Considering the possible release of the token soon, the CoinLaunch team conducted complete research on the Layer3 crypto platform. Here are some major pros and cons we found:

✅ Layer3 pros:

• Leading token distribution protocol with over 3M users;
• Low Initial Market Cap at TGE (6%);
• Presence of a token burn mechanism
• Strong average PR, SEO, and Growth Marketing performance;
• The platform performed multiple security assessments from tier 3 auditors;
• Above the average Marketing Infrastructure and Influencer Marketing score;
• Some of the top-tier backers and funds invested into the project, including Balaji Srinivasan, ParaFi Capital, Sandeep Nailwal and others;
• Presence of a diverse network of top-tier partners;

❌ Layer3 cons: 

• No roadmap presented by the team yet;
• Relatively high annual token inflation rate (27.6%);
• High Fully Distributed Valuation of the token ($90M);
• Lack of security audits from top-tier companies; 
• Lack of experience of the executive team in the crypto domain before Layer3;
• Below the average SMM score for a project of such a caliber.