Confronting the Dichotomy of Attention and Distribution in Cryptocurrency

Layer3, an omnichain identity and distribution protocol, aims to streamline user interaction and token allocation for crypto initiatives. By consolidating user activity across multiple chains, Layer3 provides a comprehensive view of onchain identities and facilitates efficient, targeted token allocation. Supporting over twenty-five blockchains, Layer3 serves millions globally, spearheading the next wave of crypto adoption.

Mission and Obstacles

Layer3 addresses the dual challenges of capturing attention and distribution in the crypto realm. Centralized tech behemoths monopolize attention, while crypto protocols struggle to effectively reach and reward users with tokens. Layer3’s pioneering solution aggregates user activity across multiple chains and decentralized applications (dApps), offering a cohesive view of a user’s onchain identity and enabling efficient token allocation.

Layer3 aspires to revolutionize how crypto projects engage users and distribute tokens, fostering a more inclusive and accessible ecosystem.

“We envisage a future where everything is tokenized, with myriad ways for users to earn them. Tokens simplify exponentially the process for projects to reach, retain, and reward users. Yet, thus far in crypto, tokens have been inefficient and costly for the projects launching them,” stated Brandon Kumar, co-founder of Layer3.

Dariya Khojasteh, co-founder of Layer3, added, “Layer3 is the catalyst for a new era of user-owned value. In crypto, attention translates to action, and we aim to decentralize this new attention economy, making it 10-100x easier to reach users. Our vision unlocks the same market that created trillion-dollar internet giants in a network where the value generated from attention and engagement accrues directly to the users.”

Elevating User Interaction and Adoption

Layer3’s interface offers users an engaging experience, allowing them to earn CUBEs (Credentials to Unify Blockchain Events) for their activities across various chains. These CUBEs serve as a record of their onchain actions, enabling precise and efficient token distribution. Since its inception, over ten million CUBEs have been minted.

The Layer3 platform supports over twenty-five different blockchains within the Ethereum Virtual Machine (EVM) and Solana ecosystems. It has catered to over three million unique users across 120 countries and is utilized by prominent crypto teams, including Uniswap, Base, Arbitrum, Linea, Polygon, Gnosis, and Celo.

Strategic Expansion and Future Endeavors

This new funding round builds on previous investments, including a strategic round of $3.7M in 2022 and a $2.5M round in 2021, bringing Layer3’s total funds raised to $21.2 million. The company plans to launch the L3 token and a new AI-enabled protocol for optimizing distribution strategies later this year.

Claude Donzé, Principal at Greenfield Capital, emphasized Layer3’s potential: “Layer3 is poised to revolutionize onchain value distribution by addressing critical challenges for both users and leading Web3 projects. For users, Layer3 offers a trusted, guided exploration of Web3 by rewarding them for meaningful engagement. For networks, protocols, and dApps, Layer3 provides a powerful solution to attract and retain the right users through targeted token distribution. Unlike the inefficient and costly methods of Web2 user acquisition, Layer3 leverages the unique advantages of token incentives, creating a decentralized distribution network that directs tokens to the most valuable users based on their onchain activity. With over $24 billion in tokens ready for distribution across major blockchain ecosystems, Layer3 is perfectly positioned to tap into this growing market and drive the next wave of crypto adoption.”

Ben Forman, Founder of ParaFi, highlighted the team’s strengths: “Attention is perhaps the scarcest resource in the onchain economy. How do you attract and retain users as a web3 project in a sustainable and organic manner? In today’s onchain environment, the lion’s share of networks and dApps are plagued with ephemeral user bases and negative unit economics. Layer3 aims to solve this problem by building a super-aggregator for the onchain economy. Simply put, they are critical middleware for users to navigate onchain experiences. After leading the seed round in November 2021, we’re excited to double down on our partnership with Layer3. Working with Brandon, Dariya, and the team for over two and a half years, we have come to admire their speed of execution, deep understanding of product design, and a relentless focus on customer experience. Furthermore, Layer3’s data and growth metrics speak volumes about the value they are adding to users, networks, and dApps. We look forward to supporting the Layer3 team on the next phase of their journey in reshaping web3 interactions.”