Layer2DAO is a focused on driving the adoption of the Layer2 (L2) ecosystem.


Layer2DAO was launched with a total supply of 1,000,000,000 L2DAO tokens. On January 30th 2022, they took their first step of their roadmap and released an that was claimable until February 28th 2022. [1][2]

Layer2DAO aims to expand the Ethereum L2 ecosystem and boost L2 ecosystem projects. Layer2DAO uses its treasury to invest and partner with high-impact L2 protocols, serving as a diversified treasury for DAO members looking to gain exposure to the L2 ecosystem growth. The protocol also engages in liquidity provisioning, 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, modeled after other protocols’ successful incentive programs. [3]


The $L2DAO token serves as the native token for Layer2DAO. This token grants its holders the ability to take part in governance decisions for the DAO. As Layer2DAO expands and diversifies, the utility of the native $L2DAO token will increase to satisfy Ethereum Layer 2 community. [4]

Treasury Management


The treasury management of Layer2DAO is focused on attracting new contributors and rewarding core contributors through the establishment of grant programs and committees to decide on future spending. [6]


Diversifying the treasury is a priority as it is currently held entirely in the native tokens. Ways to diversify include swapping a portion into or exploring token swaps with other treasuries. [6]


The treasury may include debt instruments in the long-term, with the cheapest option being loans secured by a loan protocol, but this is not currently feasible. [6]


To maintain transparency, financial statements and disclosures will be produced and a committee will be established to report on Layer2DAO's activities on a quarterly basis. [6]


Layer2DAO is governed by the xL2DAO token, a locked version of the protocol's native L2DAO token. This token grants DAO members and the community the power to guide and govern the DAO in shaping the Ethereum layer2 ecosystem. The xL2DAO token will eventually enable active participation in a distributed voting platform for resource allocation which will be used to distribute funding and rewards. Members of the protocol will be selected and rewarded for building awareness and a strong community for multiple launched projects. To balance community governance and efficient decision making, token holders will elect trusted members to committees with mandate and funding approval authority to avoid bottlenecks in micro-decisions and prevent front-running of investment decisions through public voting. [5]


in Layer2DAO allows members to earn a proportional share of xL2DAO. This is done by locking up L2DAO tokens for a certain period of time, with longer lock-up periods resulting in a higher proportion of xL2DAO and larger percentage claim and voting power. 25% of fees generated from non-L2DAO assets will be converted to ETH and sent to the vault for stakers to claim. [9]

To participate in staking, users must lock up their L2DAO tokens for a specific period of time, ranging from 2 weeks to 2 years. Locking can only be done on Thursdays, and once the tokens are locked, they cannot be unlocked until the lock-up period expires. As the unlocking date approaches, the balance of xL2DAO decreases linearly. xL2DAO is non-transferable and users can only have one share of L2DAO locked at a time, meaning users are not allowed to lock a portion of L2DAO for a year and another for 5 months simultaneously for example. Instead, stakers are allowed to extend their locked period at any time with 2 years as the upper limit. [9]

Optimism Funding

On May 4th 2022, Layer2DAO received a 300,000 OP allocation to be used to grow the ecosystem. Layer2DAO plans to use part of this allocation to incentivize high-impact Optimism protocols through the creation of the L2StateOfMind project, also known as the OPincubator. One of the first high-impact projects selected for this initiative was Thales Protocol, for which the Layer2DAO provided 27,500 OP to as well as featuring Thales on their discord to boost adoption. Additionally, there are plans to sell NFTs for OP tokens, with the aim of making the first round of voting economically neutral for early adopters such as the Galxe campaign launched on November 17th 2022. Layer2DAO also plans to award six successful projects 27,500 OP each over six separate funding rounds, with the goal of incentivizing early adopters to participate and vote in these projects. [10]

Liquidity Pools

Layer2DAO has allocated 10% of total L2DAO tokens minted equivalent to 100,000,000 tokens to . The pools currently available are:

  • L2DAO/USDs
  • L2DAO/OP
  • Sushi LP Farm (inactive at the time of writing)


On January 14th 2023, L2D4, a community pool composed of 4 major protocols, , , and Forcenet, was deployed by Layer2DAO on the (AMM), Saddle Finance. L2D4 was launched on the network and will allow users to provide liquidity in return for rewards from all four stablecoin protocols. [7][8]
In celebration of the launch of L2D4, an NFT giveaway was released on NFT platform, Galxe for anyone who followed all 6 protocols involved in the 4 pool.


.L2 Domain Names

The partnership between Layer2DAO and Punk Domains aims to support the growth of the Ethereum layer 2 ecosystem by expanding the use of L2 solutions and investing in related projects. One of the key offerings of Punk Domains is the ability to mint custom domain names using the .L2 Top Level Domains (TLD). This allows users to register native domain names that live on L2 chains, such as , , and Chain, but can be used across the entire web3 ecosystem, similar to the popular .ETH domain names. This offers an alternative to the (ENS) which, while popular, can come with high gas fees on the mainnet. Punk Domains is working with wallet providers and to integrate their service, making it more widely available for users.


L2StateOfMind, also known as L222, is a collection of 2,022 PFP(Picture-For-Profile) NFTs introduced by Layer2DAO that provides a gateway to utility within their ecosystem. The L2StateOfMind collection represents early adoption of Layer 2 Ethereum NFTs and offers holders the opportunity to participate in DOUBLE $xL2DAO revenue share weekly $ETH airdrops. These NFTs were initially available for minting at a rate of 0.1 ETH per mint, but the minting process ended after a proposal was passed. [13][14]

The proposal to cease minting was introduced on July 22, 2023, and was prompted by persistent technical issues that hindered community minting. This proposal aimed to create a sense of scarcity and value for existing NFT holders, setting the total supply at 999. Additionally, it provided Layer2DAO with a set of NFTs for future endeavors, such as sales, promotions, and events. [15]

Moreover, L2StateOfMind holders are encouraged to retain their NFTs in their wallets, given that Layer2DAO is actively pursuing new partnerships that may entail added advantages and airdrops tailored specifically for L2StateOfMind NFT holders. [16]

"We're working on several new partnerships that might have benefits + airdrops for L2StateOfMind #NFT holders. Make sure you keep one in your wallet as there could be several snapshots taken over the coming weeks!"

Legal Incorporation

On May 30, 2023, Layer2DAO incorporated as a member-managed non-profit limited liability company (NP LLC) under the laws of the Republic of the Marshall Islands (RMI). The decision to form an LLC addresses key concerns faced by DAOs in the absence of legal recognition, including limited liability protection for members, legal uncertainty surrounding contracts and agreements, and potential regulatory hurdles. By establishing an LLC, Layer2DAO offers contributors protection against personal liability and facilitates smoother engagement with off-chain entities for real-world activities and partnerships. [17]
wikiThe choice of the Republic of the Marshall Islands as the jurisdiction for incorporation stems from its progressive regulatory framework that recognizes DAOs as legal entities. MiDAO, a licensed Registered Agent in the RMI, facilitated Layer2DAO's incorporation, enabling it to operate in both on-chain and off-chain environments. As a legally recognized entity, Layer2DAO gains the ability to enter agreements, hire services, and conduct real-world activities with limited liability protection. [17]


  • Exosphere: Project Management and Strategy
  • Train: Treasury Management and Partnerships
  • iz.rael: Community Manager
  • Benita: Moderator
  • Buck Williams: Application Developer
  • Sloth: Application Developer



  • Thales Protocol
  • Saddle Finance
  • Acre Finance
  • Ascension Protocol
  • Punk Domains
  • Sterling Finance
  • What Hat DAO


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