If a project wants to maintain long-term healthy operation and continue to incentivize users for a long enough period of time and bring them a steady stream of benefits, the design of the token economy is crucial!
layer3xyz's token economics model is probably the best I've ever seen. It is a simple but effective innovative mechanism that includes all stakeholders and gives them returns based on their contributions!
The following article will analyze the token economics of $L3 in detail and why it is an undervalued token.
Token Allocation
The total amount of $L3 is 3,333,333,333, of which 51% is allocated to the community and all is explicitly used for airdrops, community incentives and ecosystem initiatives.
The remaining 49% is allocated to core contributors, investors, and advisors. This 49% allocation is locked for one year and then released every day for three years to minimize the selling pressure caused by concentrated unlocking.
Compared to other projects, @layer3xyz allocates the highest proportion to the community, such as @Galxe's 20% and @BuildOnCyber's 18.8%.
Tiered Reward Staking Mechanism
The unified staking mechanism of three-layer rewards is @layer3xyz's innovative exploration to continuously motivate the community and continuously empower the $L3 token. Through the unique layered staking mechanism, stakers can maximize their returns in a variety of ways and obtain $L3 and more ecological token rewards.
First layer:
🔸Get staking income + governance rights. The official website shows that the current APY is 83%
Second layer:
🔹Stake a certain amount of $L3 to get exclusive tasks and rewards
🔹Unlock different levels of rewards and experiences based on the amount of pledge
🔹Get early and extended access to new project launches and specially designed pre-airdrop events
🔹 Participate in special competitions and bonus programs, divided into different levels according to the betting amount
Third layer:
🔺The airdrop multiplier is based on the activity. For example, the airdrop of a large investor who does not participate in any activity will be lower than that of a retail investor who participates in many activities; the airdrop of a user who participates in 20 activities will be higher than that of a user who participates in 10 activities.
🔺$L3 tokens will be distributed to users and stakeholders through a continuous incentive mechanism, and $L3 stakers will receive a share of the distribution. All users can earn incentives by making contributions.
Buyback and Destruction
The repurchase and destruction mechanism is a standard feature of strong tokens, such as $BNB $INJ, etc., which are all accelerating token deflation and increasing token value through repurchase and destruction.
$L3 also has a buy-back and burn program, where the community can vote to initiate a revenue stream to stakeholders or a buy-and-burn mechanism for $L3 protocol revenue.
$L3 can also be burned or staked to issue tasks, deploy incentives, or as a credential to access the CUBE network.
layer3xyz Basics
The success of a project ultimately depends on its adoption. More adoption and more users are the foundation of a project.
@layer3xyz has over 3M tokens deployed to date, 100M+ interactions, 4.5M crypto users, 16M vouchers generated by the protocol, unlocking over $500B in user value. $L3 has over 100M staked.
Whether in terms of adoption or acquiring stable users, @layer3xyz is excellent enough. Linea and Scroll, which are about to airdrop, have launched large-scale activities on Layer3 to prepare for future airdrops.
Through three rounds of financing, Layer3 has raised a total of US$21.2 million from institutions including ParaFi, Greenfield Capital, Amber, etc., and has sufficient financial strength to support long-term operations.
The third season of $L3 is currently underway, and it is recommended that you participate, as there may be good returns. In addition, the official announcement of cooperation with @Immutable will launch many GameFi incentive tasks in the next few months. GameFi is in urgent need of hot products, so you can pay attention to it and see if there are any good games to ambush in advance.
Undervalued $L3
DappRader data shows that @layer3xyz has 66.73K users in 24 hours, CyberConnect has 1.21K users, and Galxe has 48.95K users. Since they are in the same track, it is very suitable for horizontal comparison.
From the perspective of circulating market value:
@layer3xyz $L3 $18 million, CyberConnect $CYBER $70 million, Galxe $G $290 million.
The price for $L3 to reach the market value of $CYBER is 0.18, and the price to reach the market value of $G is 0.757. However, the current price of $L3 is only 0.047, with room for growth of 3.9 times and 16 times respectively.
In terms of total market value:
@layer3xyz $L3 160 million, CyberConnect $CYBER 300 million, Galxe $G 470 million
The price for $L3 to reach the market value of $CYBER is 0.09, and the price to reach the market value of $G is 0.14, which still has enough profit space.
In addition, the current market is still in an extremely depressed state, and the currency prices have reached a temporary low. The expectation for future increases is very strong, and this space is also very imaginative.
In fact, Layer3's on-chain data is significantly better than the other two projects. Combined with $L3's layered staking mechanism, which brings continuous returns to users, it will lock in more liquidity, as well as future repurchase and burning and actual empowerment expectations. The market value of $L3 is likely to surpass $CYBER and $G to become a dark horse in the Social track, which is worth investing in.
The above is not investment advice, please DYOR and invest with caution!
