1. What is L3?

Layer3 (L3) is a cryptocurrency primarily used for building more customized blockchain designs based on Layer2. Here’s an introduction to Layer3:

1. Definition and Purpose: Layer3 is a scaling solution built on Layer2, aimed at providing enhanced scalability, enabling developers to create customized application-specific blockchains according to their needs.

2. Applications and Collaborations: Layer3 has been adopted by several projects, such as Syndicate Frame Chain, Degen Chain, and Ham Chain. These projects leverage Layer3 to provide high throughput and extremely low gas costs for applications in various fields, including social data and social tipping functions.

3. Technical Advantages: Layer3 offers several advantages including almost zero gas fees, smart gas subsidies, native gas tokens, data oracles, and pre-compilation. These features make Layer3 significantly important in scaling Ethereum, enhancing on-chain communities and their applications, and attracting new users to Web3.

4. Controversies and Criticism: Despite its advantages, Layer3 has faced some criticism. Ethereum co-founder Vitalik Buterin pointed out that Layer3 does not magically enhance throughput; rather, it achieves cost savings by reducing certain fixed costs associated with batch publishing and deposits/withdrawals. Polygon Labs CEO Marc Boiron also stated that Layer3 would merely capture value for Layer2 and does not contribute positively to Ethereum's development.

In summary, Layer3 is a cryptocurrency technology aimed at providing enhanced scalability, adopted by several projects, but it also comes with some controversies and criticisms.

2. Who founded L3?

According to the provided information, Layer3 (L3) was co-founded by Brandon Kumar and Dariya Khojasteh. Their team is dedicated to developing a Web3 marketing platform, enabling users to earn rewards by completing tasks through a combination of on-chain and off-chain operations, while projects can gain user traffic.

3. Which venture capitals have invested in L3?

According to the information provided, here are the venture capital investment details related to L3 (Layer3):

1. Orbs: As an L3 blockchain, Orbs operates in conjunction with existing L1 and L2 protocols, focusing on solving the scalability issues faced by the Ethereum blockchain. While the specific investment amount is not mentioned, Orbs' partners include Ethereum, BNB Chain, Avalanche, and Polygon.

2. Arbitrum Orbit: The Arbitrum Foundation launched Arbitrum Orbit, which is an L3 blockchain built on the Arbitrum Nitro platform. While specific investment amounts are not mentioned, Arbitrum Orbit allows developers to create their own self-governing dedicated blockchains on the Arbitrum Nitro platform.

3. zkSync Hyperchains: Another example of L3, zkSync Hyperchains combines the best aspects of L1 and L2, improving scalability and security of the network. While the specific investment amount is not stated, zkSync Hyperchains is considered an interesting innovation in the cryptocurrency field.

4. Babylon: Although not a direct L3 investment, Babylon completed a new financing round of $70 million led by Paradigm in May 2024, having previously received investments from Polychain Capital and Hack VC. Babylon's investments may involve technology development related to L3.

Overall, while specific investment amounts for L3 are not mentioned, these projects are all involved in the technology development and application of L3, indicating a strong interest and willingness to invest in the L3 space.

4. How does L3 work?

The L3 (Layer3) cryptocurrency is a comprehensive identity and distribution protocol designed to generate a unified view of user identities on the blockchain by aggregating user activities across multiple chains and dApps, facilitating highly targeted and efficient token distribution. Here’s how L3 cryptocurrency operates:

1. Task-Centric Framework: L3 operates through a unique task-centric framework. Users can earn rewards such as tokens, NFTs, Discord roles, XP, achievements, and mystery boxes by completing a series of on-chain and off-chain steps or actions.

2. Comprehensive Identity and Distribution Protocol: L3 aggregates user activities across multiple chains and dApps, creating a unified view of user identities on the blockchain for efficient token distribution. Projects built on L3 can programmatically distribute tokens to suitable users based on criteria such as time triggers, asset ownership, on-chain activity, credentials, social graphs, and task engagement.

3. Layered Staking Model: Users can earn maximum rewards through staking and actively participating in L3, including passive income and other governance tokens, as well as enhancing the utility of the protocol. The layered staking is divided into three tiers, with rewards increasing based on the amount of staked tokens and user activity.

4. Token Distribution: The total supply of L3 tokens is 3.3 billion, distributed as follows:

5. 51% (approximately 1.69 billion) allocated to the community.

6. 25.3% allocated to core contributors.

7. 23.2% allocated to investors.

8. 0.5% allocated to advisors.

9. Burn Mechanism: To access the L3 protocol and network, users and the community must buy and burn L3 tokens. This mechanism is used for task publication, deploying incentives, and acquiring CUBE credentials.

10. CUBE Dynamic NFT: An ERC-721 token minted after users complete tasks, recording their participation across various tasks, chains, and ecosystems, helping to enhance user engagement in projects.

In summary, L3 cryptocurrency achieves efficient token distribution and user engagement incentives through its comprehensive identity and distribution protocol, layered staking model, and burn mechanism.