Welcome to the official Layer2DAO Documentation portal!
Layer2DAO is a decentralized autonomous organization focused on driving the the adoption of the Layer2 Ethereum ecosystem. With the Ethereum merge complete, nearly all Ethereum thought leaders agree that layer2 protocols are key to the future of the Ethereum ecosystem.
But, adoption has been slow, and the speed of L2 adoption needs to be accelerated. We see the lack of token incentives in many of the L2 projects as a hurdle to them gaining traction. While some projects at the time had successfully launched their own tokens to incentivize adoption (such as Metis and Boba), others (such as Arbitrum) had not. Layer2DAO was born to promote L2 adoption.
Layer2DAO is expanding the Ethereum L2 ecosystem and boosting L2 ecosystem projects. The DAO is using its treasury to invest and partner with high-impact L2 protocols and ecosystem plays, serving as a diversified treasury for DAO members looking to gain exposure to the L2 ecosystem growth. It also provides engages in liquidity provisioning, NFT creation, and many other activities that create value and perpetually place 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.
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 layer2 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.