Layer3, a token distribution protocol, has successfully raised $15 million in a Series A funding round, positioning itself strategically ahead of its upcoming token launch and airdrop. The funding round was co-led by ParaFi and Greenfield Capital, with participation from notable investors including Electric Capital, Immutable, Lattice, Tioga, LeadBlock, and Amber.

Brandon Kumar, co-founder of Layer3, shared that the project began raising funds in April and closed the round in May. The funding round was structured as equity with token warrants, though Kumar did not disclose the valuation. Alongside the Series A funding, Layer3 revealed an earlier strategic funding round of $3.7 million, which included investments from Electric, ParaFi, and Polygon's Sandeep Nailwal, among others. This brings Layer3's total funding to $21.2 million, following a $2.5 million round in 2021.

Layer3 specializes in enabling projects to distribute their tokens effectively, aiming to attract and retain users. "Protocol treasuries hold billions of dollars in tokens," Kumar stated. "These tokens largely serve as a Customer Acquisition Cost (CAC) mechanism and will, over time, find the most efficient routes for distribution. Protocols like Layer3 are poised to capture the majority of this demand given our direct relationship with the consumer, efficiency, and targeting capability."

The platform unifies user activity across multiple blockchains and applications, streamlining the token distribution process. Over 100 crypto projects, including Uniswap, Base, Arbitrum, and Linea, utilize Layer3's services. The platform boasts over 3 million unique users from 120 countries.

Looking ahead, Layer3 is developing a new AI-enabled protocol designed to optimize token distribution strategies, set to launch later this year. This innovation aims to introduce new methods for projects to issue and distribute tokens, enhancing the personalization of the platform for end consumers.

In conjunction with its Series A round, Layer3 is preparing to launch its native L3 token and conduct an airdrop this summer. The L3 token, introduced last month as a "governance and utility token," has a total supply of 300 million. An initial airdrop will distribute 5% of the total supply, or 15 million tokens, to early adopters and CUBE minters. CUBE (Credential to Unify Blockchain Events) are dynamic NFTs minted upon quest completion, as explained by Kumar. The airdrop snapshot was taken on May 10, with 51% of the total supply allocated to the community. Details regarding the remaining allocation are yet to be disclosed.

With the new funding, Layer3 plans to expand its team from 13 to 20 by the end of the year, focusing on roles in engineering, data science, and business development. The company also aims to enhance its presence in the Asia–Pacific (APAC) region, reflecting its growth ambitions and commitment to broadening its market reach.