CryptoSlate’s SlateCast podcast recently hosted Brandon Kumar, co-founder of Layer3, to discuss the platform’s goal of transforming crypto engagement. Kumar shared how Layer3 empowers users with ownership of the value they generate. Joined by CryptoSlate’s Editor-in-Chief Liam “Akiba” Wright and CEO Nate Whitehill, Kumar also discussed Layer3’s business model, future plans, and the broader trends shaping the cryptocurrency industry.
User-Owned Value: A Shift in Engagement
Layer3 focuses on “user-owned value,” a concept that challenges traditional advertising models. Unlike platforms like Google or Facebook, which profit from user attention, Layer3 allows users to earn while interacting with protocols relevant to their interests. Kumar emphasized, “When users spend time on Layer3, they not only discover new protocols but also earn.”
By creating this new model, Layer3 establishes a more direct link between users and crypto projects. This shift benefits users by giving them a more rewarding experience while interacting with the ecosystem.
Kumar’s Transition from Traditional Finance to Crypto
Kumar’s transition from traditional finance to the crypto space significantly influenced Layer3’s approach. Previously, he worked at Accolade Partners, a leading alternative asset manager. His experience in venture capital and technology investments provided him with a unique perspective on the crypto market. Kumar reflected, “Crypto venture resembles the early days of traditional venture capital in the 80s and 90s.”
His background in finance also emphasized the importance of strong business models and strategic decision-making. “Understanding business models helped me make key decisions about Layer3’s growth,” he said.
Layer3’s Two-Sided Marketplace
Layer3 operates as a two-sided marketplace, connecting large layer-one (L1) and layer-two (L2) ecosystems with users seeking meaningful engagement. Kumar explained, “We help ecosystems like Optimism and Arbitrum attract, retain, and engage users on-chain.”
In addition to “quests” for rewards, Layer3 provides a holistic experience. Users can access trading, prediction markets, and opportunities for deeper engagement with on-chain protocols. This comprehensive approach sets Layer3 apart from typical crypto platforms.
Supporting Decentralized Autonomous Organizations (DAOs)
Layer3 plays a key role in supporting DAOs, including its involvement in Optimism and Arbitrum. Kumar shared, “We are active participants in our customers’ DAOs.” By participating as delegates, Layer3 strengthens its commitment to creating meaningful on-chain engagement rather than superficial actions.
This support for DAOs underscores Layer3’s mission to drive deeper involvement in the crypto space, helping users connect with the projects that matter most to them.
Challenges in the Regulatory Landscape
Regulatory uncertainty remains a significant challenge for Layer3 and the broader crypto industry. Kumar noted, “The pace of innovation is hindered by compliance issues,” especially for U.S.-based crypto startups. He explained that the role of lawyers can sometimes influence product development due to the complexities of navigating regulations.
Kumar also referenced Operation Choke Point 2.0, where U.S. banks reportedly restricted services to crypto firms. “The banking system made it difficult to maintain payroll,” he said, describing how such restrictions impacted crypto startups.
Layer3’s Future Plans and Key Vertical Focus
Looking ahead, Layer3 is restructuring its operations into three core verticals: distribution, trading, and a skunkworks division focused on AI, conversational finance, and crypto. Kumar explained, “We’re adapting the company to cater to our expanding user base and explore emerging trends.”
Additionally, Layer3 plans to launch its own token, which will play a crucial role in revenue-sharing and user incentives. “A portion of the fees we generate will be used to buy back the L3 token,” Kumar noted, highlighting the importance of aligning incentives across all stakeholders.
Future Trends: Mobile Development and Speculation
Kumar sees two major trends shaping the future of crypto. First, mobile-first development will dominate the next cycle. “This will be the mobile era,” he predicted, hinting at Layer3’s acquisition of a mobile trading platform.
Second, Kumar believes that the next cycle will see increased speculation, particularly among younger generations. He noted, “Speculation on everything will become a core theme,” as crypto-native tools facilitate 24/7, real-time markets.
Conclusion: Layer3’s Role in Web3’s Future
The SlateCast episode with Brandon Kumar highlighted Layer3’s unique vision for user-owned value and its potential to redefine crypto engagement. By aligning user incentives with on-chain activity, Layer3 aims to create a more meaningful and rewarding Web3 experience.
As the regulatory environment evolves, Layer3’s innovative approach to user engagement and multi-channel involvement may offer a blueprint for the next era of decentralized growth. With its focus on mobile development, tokenization, and deeper crypto engagement, Layer3 is set to play a pivotal role in shaping the future of Web3.
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