This is the first of two votes required for a new product to be onboarded to the Index Coop.

A passing vote here signals the Index Coop's intent to further research the Layer 2 Index (LAYER2) feasibility resulting in a product prioritization score.

Passing Thresholds:

• 5% or more of circulating supply must participate (2,181,385*0.05 = 109 069)
• 50% or more of participating tokens must vote FOR

FOR - Pass Layer 2 Index (LAYER2) through Decision Gate 1. Begin work to research & assign Layer 2 Index (LAYER2) a product prioritization score.

AGAINST - Do not pass Layer 2 Index (LAYER2) through Decision Gate 1.

DG1 is a signaling step to gauge community sentiment. The full-text Layer 2 Index (LAYER2) exceeds Snapshot’s character count limit. Below is an abbreviated proposal. Check out this forum post to read the full proposal.

================================================ Title: Launch the Layer 2 Index (LAYER2) Author: @JosephKnecht (MoonRock), Advisor: Piotr Szlachciak (L2BEAT) Created: 07 Jan 2021

1.0 Simple Summary

We propose launching the LAYER2 Index, an index token of the Layer 2 ecosystem. The product is receiving data from and being advised by L2BEAT, the leading analytics and research platform for Ethereum layer two (L2) scaling.

Most recent composition.

2.0 Abstract

Layer 2 (L2) blockchains are a ground-breaking innovation in cryptocurrency. L2 chains provide transactions which are orders of magnitude faster, less expensive, and higher throughput than their L1 counterparts. The extremely high performance of L2 chains will be instrumental in onboarding the next generation of mainstream users to crypto. Additionally, the dramatically faster speed and lower transaction costs enable a wide range of applications not currently possible on decentralized L1 chains such as real-time gaming, high-frequency trading, micro-trading, perpetuals, and central limit order books. It is anticipated that most applications will eventually move to L2 with L1 serving as a settlement layer.

The LAYER2 index token will capture the leading protocols in the L2 revolution. The protocols include infrastructure, scaling, and application tokens. The index is receiving data from and being advised by L2BEAT, the leading L2 analytics dashboard and educational resource.

2.1 Motivation

L2 protocols represent one of the most dynamic and promising segments of the cryptocurrency market. In the Index Coop’s most recent market research surveys, an L2 index token featured as one of the most requested products. The LAYER2 token can address that market demand. Strategically, an L2 index would also help the Coop build partnerships and visibility with L2 protocols and users ahead of the industry-wide migration to L2.