Governance

$L3

$L3 is the governance token used by the community to manage key parameters of the Layer3 Protocols. Additionally, $L3 can be used by stakers to enhance their utility when utilizing Layer3 protocols and front-ends.

The Layer3 Foundation will add additional information in June 2024.

Contract Address: Token Not Deployed Yet

Proposal Types

Layer3 Improvement Proposals (LIPs) fall into the following three categories:

1. Protocol

Proposals that modify critical protocol parameters. Governable parameters include:

Total fee for minting credentials (typically .000075ETH or equivalent on non-ETH chains)
Total percentage fee collected by the Token Distribution protocol (initially set at 20%)
Fee split percentage between the protocol and the transaction-originating front-end (initially 50/50) This 50/50 fee split is a strategic choice by the Foundation to foster integrations with Layer3 protocols.

Layer3 protocols and support a broad range of ecosystems and tokens, and high-quality front-ends are essential for the infrastructure's success.

2. Process

Proposals that amend governance processes, procedures, guidelines, or tools within the Layer3 DAO. Example: A proposal to adjust the cooldown on proposal votes.

3. Operations

Special initiatives concerning branding, marketing, or operational changes. Example: A proposal to update the font or primary colors used in Foundation's marketing materials.

Proposal Drafting

Proposals should be drafted in the forum as follows to be considered valid:

Title and Type A brief title reflecting the proposal's essence, accompanied by the selected type.
Abstract A concise summary in one paragraph.
Motivation Why the DAO should implement this proposal.
Glossary Definitions for specialized terms used within the proposal.
Detailed Plan A comprehensive description of the proposed changes, implementation methods, and a detailed action plan with timelines tied to key milestones.
Benefits & Risks An assessment of the proposal's potential benefits and risks.
Results Expected outcomes of the proposal.
Finances Financial requirements for the proposal, with detailed cost breakdowns.
Milestones (if applicable) Relevant milestones for the proposal.

Proposal Guidelines

Proposals must adhere to the Foundation's governing principles and applicable laws (including those of the Cayman Islands, where the Foundation is based). Non-compliance may lead to proposal rejection, invalidation, or a veto by the Security Council.

Proposal Conflicts

Proposals in direct conflict with another under consideration must be postponed until the initial proposal is resolved. This prevents contradictory stipulations from being endorsed.

Governance Process

The governance process involves three steps:

Governance Forum Discussion Initial proposal discussions take place on the Layer3 Governance Forum. Drafts must adhere to the outlined format to be considered for voting. Forum discussions must occur for a minimum of 21 days to be considered valid.
Tally Tokenholder Voting After thorough discussion and feedback integration, proposals move to Tally for a community vote. Voting is proportional to the $L3 balance of each wallet. Voting period: 3 days, followed by a 2-day cool-off period during which votes can only be changed from "yes" to "no".
Security Council Review & Execution The Security Council reviews and, if approved, executes the proposal. A majority (4 out of 7 members) must agree for a proposal to be approved or vetoed.

Security Council

The Security Council, composed of seven independent builders, is responsible for safeguarding the protocols from harmful governance actions. Council members receive a monthly compensation of $700 in $L3 tokens, exchanged at the current rate.

$L3