Layer3, a pioneering token distribution protocol, has successfully raised $15 million in its Series A funding round in preparation for its upcoming token launch and airdrop scheduled for the coming months.

Co-led by ParaFi and Greenfield Capital, with participation from Electric Capital, Immutable, Lattice, Tioga, LeadBlock, Amber, and other prominent investors, the funding round concluded in May after beginning its fundraising efforts in April. Brandon Kumar, co-founder of Layer3, disclosed that the round was structured as equity with token warrants, though the project did not disclose its valuation.

In addition to the Series A round, Layer3 revealed a previously undisclosed strategic funding round of $3.7 million from Electric Capital, ParaFi, Polygon's Sandeep Nailwal, and others in 2022. This latest financing brings Layer3's total funding to $21.2 million, having previously raised $2.5 million in a 2021 funding round.

What is Layer3?
Layer3 operates as a pivotal token distribution protocol designed to facilitate the distribution of tokens for various projects to attract and engage users effectively.

According to Kumar, "Protocol treasuries hold billions of dollars in tokens. These tokens, in large part, 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."

Layer3 consolidates user activity across multiple blockchain networks and applications, optimizing the distribution of tokens for protocols.

The platform boasts over 100 crypto projects utilizing its services, including prominent names like Uniswap, Base, Arbitrum, and Linea, serving over 3 million unique users across 120 countries.

AI-Enabled Token Distribution Strategy
Layer3 is currently developing an AI-enabled protocol set to launch later this year, aimed at enhancing token distribution strategies. This innovation is expected to introduce novel methods for projects to issue and distribute tokens, delivering a more personalized experience for end consumers.

Layer3 Token Launch and Airdrop
Layer3's Series A funding round coincides with its plans to launch its native token, L3, and conduct an airdrop during the summer months. Recently introduced, the L3 token is designated as a governance and utility token with a total supply of 300 million. The initial airdrop will distribute 5% of the total supply, equivalent to 15 million tokens, to early adopters and CUBE minters. CUBE tokens, abbreviated for "Credential to Unify Blockchain Events," are dynamic NFTs minted upon completion of quests.

The snapshot for the airdrop was taken on May 10, with 51% of the total token supply allocated to the community, while details regarding the remaining allocation are forthcoming.

With the fresh infusion of funding, Layer3 plans to expand its current team of 13 employees to 20 by year-end, focusing on hiring in engineering, data science, and business development roles. Additionally, the project aims to strengthen its presence in the Asia-Pacific (APAC) region as part of its growth strategy.