Governance
$L3
L3 is the token that will be 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 and burned by communities to deploy quests. Read more about Staking.
Contract Address: 0x88909D489678dD17aA6D9609F89B0419Bf78FD9a
Network: Ethereum Mainnet
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 staked $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". Threshold to create a proposal: 3,000,000 L3. Threshold to pass: 33,000,000 "yes" votes and number of "yes" votes greater than "no" votes.
Security Council Review & Execution The Security Council, assigned by the Foundation, reviews and, if approved, executes the proposal.
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