In anticipation of our TGE, let’s talk about $LAY3R, AutoLayer’s Liquidity-Proxy Token. We’ve teased the release of the token and have had campaigns to generate interest in AutoLayer and LAY3R itself, but how exactly will LAY3R work in the grand scheme of things? Here’s a deeper dive into it.
How $LAY3R works and generates value over time
The AutoLayer token is pivotal to the protocol ecosystem, increasing in value as the user base expands. Currently, no fees are charged, but the platform plans to implement a fee ranging from 0.05% to 0.20% on all transactions conducted via AutoLayer.
After our token launch, we will add a transparent fee to every transaction, with that fee the user will automatically purchase LAY3R and ETH on the market to provide liquidity to the LAY3R/ETH pair. Following this, an Escrowed Liquidity AutoLayer Token (esLAY3R) will be issued to the user’s wallet.
Holding esLAY3R tokens will accumulate more LAY3R tokens over time, with the returns increasing the longer they are held. After 30 days, the liquidity provider (LP) tokens begin their maturation process, peaking at 12 months. A user can withdraw his LPs after the 30 days, at any moment, the longer that position is held, the longer the yield.
With this functionality LAY3R works as proxy token, every user is a long-time holder, and the more the protocol grows the more the liquidity is decentralized.
$LAY3R’s Tokenomics and Allocation
LAY3R will be distributed across these categories:
Community: 25.4% — 8,131,200 LAY3R
Ecosystem: 28% — 8,960,000 LAY3R
Seed Round: 17.2% — 5,499,880 LAY3R
Public Round: 2.4% — 768,000 LAY3R
Liquidity Provision: 5% — 1,600,000 LAY3R
Treasury: 4% — 1,280,000 LAY3R
Strategic Advisors: 4% — 1,280,000 LAY3R
AutoLayer Team: 14% — 4,480,000 LAY3R
Community Milestones
25% of the total LAY3R supply will be allocated to our community through airdrops and other incentives over a 5-year period, and they will be distributed based on Community Milestones, which are activated by goals achieved by the community.
Community Milestones are associated with the maturity of AutoLayer and will be initially defined by the AutoLayer team and subsequently by the AutoLayer community. Our milestones are split into Seasons:
Season 1: During the Token Generation Event (TGE), 1% of the total supply will be exclusively unlocked for AutoLayer users.
Season 2: This season will be activated once AutoLayer achieves 5,000 daily active users (DAU), thereby unlocking an additional 1% of the total supply.
Season 3: When the total volume traded on AutoLayer reaches $100 million, another 1% of the total supply will be unlocked.
Future seasons will be announced upon their achievement.
For more information, visit the Tokenomics section in our documentation: https://docs.autolayer.io/autolayer/welcome/introduction/tokenomics
Should you have missed our recent article:
About AutoLayer
AutoLayer is the premier Liquid Restaking Tokens (LRT) Finance app on Arbitrum. Harness the potential of EigenLayer by restaking into various LRT/LST options with just one click while conserving and compounding your yields effortlessly. All LRTfi. One interface.
