Question 1

What is L3?

Accepted Answer

L3 is the governance and utility token of the Layer3 protocol ecosystem. Layer3 positions itself as infrastructure for omnichain distribution, identity, and incentives; within this system, L3 is used for protocol-parameter governance and is connected to staking and certain ecosystem functions. “Governance and utility” does not mean that holding L3 automatically confers company equity or fixed returns. It describes the token's uses in protocol rules and ecosystem participation mechanisms; whether each specific function is available and its conditions depend on the actual design of the relevant mechanism.

Question 2

What role does L3 play in governance?

Accepted Answer

L3 is used for governance of Layer3 protocol parameters, enabling token participants to participate in governance arrangements concerning protocol parameters and the protocol's direction of development. The core of the governance role is to influence protocol-level rules or configurations, rather than turning every ecosystem activity directly into an individual right of token holders. Specific proposal thresholds, voting weights, voting periods, and execution methods must follow the governance rules applicable at the time. Therefore, “L3 can be used for governance” is a disclosed use; a decision that has not been passed or executed cannot be regarded as having already been implemented through L3 governance.

Question 3

What practical impact does staking L3 have?

Accepted Answer

Layer3 designs L3 staking as a participation method connected to rewards and ecosystem benefits. The relevant tiered mechanism combines staked amount, lock-up duration, and platform participation, with all three factors jointly affecting a user's tier and the L3 rewards or functional benefits associated with that tier. This means that merely holding L3 is not exactly the same as completing staking: the staked amount determines the scale of participation, while lock-up duration and participation further affect the tiering outcome. Reward eligibility, calculation results, and function availability remain subject to the rules of the specific staking mechanism, and staking should not be understood as an unconditional or fixed-rate return.

Question 4

What ecosystem functions can L3 be used for?

Accepted Answer

In Layer3's ecosystem design, L3 can be used to publish tasks, deploy incentives, and connect to the CUBE credential network. Tasks and incentives support distribution activities; CUBE is a protocol component that handles cross-chain identity credentials and is used to record and use related identity information. These uses connect the token to distribution and participation flows in the ecosystem, but do not mean that every token holder automatically obtains the right to publish tasks, eligibility for incentives, or a particular credential benefit. Actual available functions depend on the modules open on the platform at the time and their participation conditions.

Question 5

What is the difference between L3's total supply and circulating supply?

Accepted Answer

L3 has a fixed total supply of 3,333,333,333 tokens. A fixed total supply defines the protocol's token cap; it does not mean that the entire amount is available for market trading at a given point in time. Circulating supply also depends on when each allocation category is released from lock-up. Especially where allocations have lock-ups and linear releases, the total supply does not increase, but the tradable supply changes with the established unlocking schedule.

Question 6

How is L3 allocated?

Accepted Answer

Of the L3 allocation, the community receives 51%, core contributors 25.3%, investors 23.2%, and advisors 0.5%. The community portion is used for purposes including airdrops, incentives, and ecosystem programs. These percentages describe the planned allocation structure of the tokens, rather than indicating that every category will enter the market on the same day. To understand supply, both allocation percentages and release rules for each category should be considered: the former describes the distribution of total supply, while the latter determines when circulating supply may arise.

Question 7

What is L3's unlocking schedule?

Accepted Answer

L3 for core contributors, investors, and advisors unlock on a four-year schedule: none is released during the first year, followed by gradual monthly releases over the next three years. The first-year lock-up phase is commonly called a cliff; after it ends, the remaining allocation does not all unlock at once, but instead becomes claimable or circulating month by month. Therefore, this arrangement changes when the relevant allocated tokens enter circulating status, rather than changing the fixed total supply itself. It also cannot by itself determine actual selling pressure on any given day, because whether holders transfer or sell is a separate matter.

Question 8

Why does participation affect L3-related incentives?

Accepted Answer

Participation is included in Layer3's incentive design because tiered staking considers not only staked amount and lock-up duration, but also platform participation. The design is intended to include both long-term locking and actual participation in determining rewards or ecosystem benefits. It does not mean that simply increasing activity will necessarily earn a fixed quantity of L3. Whether a user is eligible, which coefficient applies, and what benefits are ultimately received are still determined by the specific rules of the relevant activity and staking mechanisms.

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