Introducing Layer2DAO
Much of the Ethereum community agrees that layer 2 projects are key to the future of the Ethereum ecosystem. But, like so many others, we feel frustrated by the slow adoption of these projects. We see the lack of token incentives in many of the L2 projects as a hurdle to them gaining traction. While some projects have successfully launched their own tokens to incentivize adoption (such as Metis and Boba), many others (such as Arbitrum and Optimism) have not. So we decided to launch our own token to promote L2 adoption. And this is how Layer2DAO was born.

Building the Leading Ethereum L2 Community DAO

Layer2DAO is expanding the Ethereum L2 ecosystem and investing in L2 ecosystem projects. The DAO is using its treasury to invest into high-impact L2 protocols and ecosystem plays, serving as a diversified venture fund for investors looking to gain exposure to the L2 ecosystem growth. It also provides liquidity, depositing, and staking, perpetually reinvesting proceeds back into the DAO.
Layer2DAO also provides incentives for users to move their funds to L2s and use protocols on those L2s, modeled after other protocols’ successful incentive programs. We plan on particularly supporting projects that have not launched their own token to drive adoption.
Layer2DAO is governed by L2DAO token holders. Through the proposal and voting process L2DAO token holders will determine the actions and direction of Layer2DAO.

Why Layer 2?

The increasing number of applications and users on Ethereum are responsible for increasing the load on the network. The capacity of the Ethereum network is limited. Therefore, the cost of using the network increases prominently with more and more users competing with each other for adding transactions to the Ethereum network.
So, Ethereum layer 2 scaling solutions are considered vital instruments for addressing the problems with network performance. Many solutions for Ethereum scaling are undergoing research, testing, and implementation with different approaches for achieving scalability.
The primary objectives of scalability for the Ethereum network refer to improvement in transaction speed alongside transaction throughputs. At the same time, the scaling solutions should not compromise the security or decentralization of the Ethereum network. Ethereum also experiences the concerns of unreasonable gas prices and slower transactions on the layer 1 blockchain. As of now, Ethereum has two distinct options in the form of sharding and layer 2 solutions for addressing the problems of scalability, high transaction fees, and delays in transaction settlement.
For more information about Layer 2 solutions, we recommend this article by dcbuilder.eth.
Last modified 24d ago