Layer3
L3
Evaluation Score
Overall rating on a scale of 0-10
Dimension Breakdown
AI Analysis
Comprehensive evaluation of the token
Layer3 (L3) is an active onchain identity and user engagement quest infrastructure protocol with a live product ecosystem, including smart wallets, CUBEs, and Builder tooling. The project has a verified public founding team (Dariya Khojasteh and Brandon Kumar) and maintains a clean operational history free of protocol-level exploits, security breaches, or regulatory actions. Security hygiene is supported by third-party audit coverage (Sherlock, ThreeSigma), dual active bug bounties on HackenProof, and an 'A' rating on CertiK Skynet. However, the asset faces notable tokenomic and market headwinds: high insider concentration (up to 85.6% final share), significant potential unlock overhang with only ~26% circulating supply, low and fragmented trading liquidity, and early-stage governance centralized around a Foundation-led Protocol Council. With all six sections evaluated without data gaps or qualifying red-flag events, the overall weighted average score is 5.4/10.
Development Activity
Code updates and developer engagement
Community Support
Social media presence and community engagement
Tokenomics
Supply, distribution, and utility
Market & Use Case
Value proposition and competitive landscape
Team & Governance
Team background and project governance
Security & Audits
Security history and audit status
About Layer3 (L3)
Layer3 (L3) is an onchain consumer identity, engagement, and quest infrastructure protocol founded in 2021 by co-founders Dariya Khojasteh and Brandon Kumar. Rather than functioning as a Layer-2 rollup network, the platform provides user acquisition and interactive quest infrastructure for decentralized applications. Its live product suite includes smart wallets, CUBEs, staking functionality, and Builder tooling designed to facilitate user distribution across blockchain ecosystems.
The L3 token operates on the Ethereum Mainnet as a UUPS-upgradable ERC-20 contract with a fixed total supply cap of 3,333,333,333 tokens. Token mechanics include staking, locks through Builder platform usage, and token burns associated with CUBE minting. Security evaluations include smart contract audits by Sherlock in December 2023 and ThreeSigma in July 2024, alongside active bug bounty programs hosted on HackenProof. The project maintains a clean operational history with no recorded protocol exploits, security breaches, or regulatory enforcement actions.
Governance and token distribution reflect several structural risks. Governance remains early-stage and centralized, managed via a Foundation-guided Protocol Council requiring a 50,000 L3 staking threshold, with full DAO voting not yet implemented. Furthermore, the token economics exhibit high insider allocation, with insiders holding up to an 85.6% final share, alongside a low circulating supply of approximately 26% of the total supply that presents unlock overhang risks, coupled with fragmented market liquidity.