LayerAI Proposal: Mainnet Token Deployment on the LayerAI Layer-2 Network

Introduction to the Data Economy

In recent years, the valuation and importance of data in the global economy has increased significantly, with the World Economic Forum estimating the global data economy at $3 trillion. Additionally, the European Union predicts a 530% increase in global data volume, projecting the EU data economy to reach €829 billion by 2025.

Major tech corporations such as Meta, Google, Apple, and Amazon have amassed substantial market value through the extensive collection and monetization of user data, which is then sold to advertisers.

However, a critical issue extends beyond tech giants' data monopolization, which often excludes individuals from the value chain.

A critical concern highlighted by Epoch, a research institute, is that the supply of high-quality internet data could potentially be exhausted by 2026 due to tech giants' rapid consumption. This presents a significant challenge as the Artificial Intelligence (“AI”) industry advances further.

Since its inception in March 2023, LayerAI has tackled the systemic challenges of data quality and availability. For the first time, ecosystem users—the rightful data owners—are compensated for their contributions, granting them ownership and control, and enabling them to directly monetize their data.

AI Economy

The artificial intelligence (“AI”) industry has witnessed exponential growth in recent years, achieving a valuation of over $10 trillion. This surge in interest is evidenced by a substantial increase in global Google searches for “AI”, which according to Google Trends data, have outpaced searches for “Bitcoin” and “Crypto”.

Meanwhile, OpenAI's ChatGPT has emerged as the fastest-growing application in history, amassing over 180 million users and attracting approximately 1.6 billion visits per month, outperforming major platforms like TikTok and YouTube.

Despite a 74% year-over-year decline in funding for web3 startups, and a 65% reduction in investment for non-AI sectors since 2022, AI funding experienced a comparatively modest decrease of just 6%, according to a Binance report. This data reaffirms the resilience of the AI sector compared to the broader market.

Competitor Analysis

Establishing a solid user base is one of the most challenging yet critical factors for the success of any early-stage startup. A report by Deloitte revealed that less than 10% of all blockchain startups succeed, with an average lifespan of about a year.

Furthermore, a study by CoinGecko found that over three-quarters of blockchain games launched between 2018 and 2023 have failed, primarily due to the lack of an active player base. This data highlights the crucial role a user base plays in a startup's longevity and success.

Launched in March 2023, LayerAI entered the market during a particularly challenging period, amidst the aftermath of the FTX contagion. While numerous startups struggled to retain users and sustain operations, LayerAI significantly outperformed other AI projects by acquiring 2 million users, and launching 12 products within 14 months of its inception. The details of these products will be explored further in the subsequent section.

With Nvidia reporting $26 billion in Q1 revenue, exceeding expectations by 5.3%, and AI projected by PricewaterhouseCoopers (PwC) to contribute up to $15.7 trillion to the global economy by 2030, it is increasingly evident that AI will be one of the strongest narratives of this cycle.

LayerAI is well-positioned to capitalize on this narrative momentum, establishing itself as the go-to provider of high-quality data for AI training, with tremendous potential for its upcoming major ecosystem products.

In contrast to other AI gas tokens, LayerAI is outperforming its competitors in both development and user acquisition, thereby establishing a significantly higher benchmark within the industry.

LayerAI Ecosystem

The LayerAI ecosystem comprises of a LayerAI data economy app, LayerVPN, KyotoX, LayerMarketplace, and Layer-2 Network:

1. LayerAI Data Economy App - With over 1 million registered accounts prior to its mainnet launch, the LayerAI Data Economy App is a core product of the ecosystem. As the first AI2Earn mobile app, it serves as a hub for collecting, transmitting, and monetizing data, contributing to the advancement of AI models.

2. LayerVPN - Upon downloading LayerVPN and equipping data capsules, users can earn reward tokens for browsing the web.

3. KyotoX - The default app within LayerAI's global AI app store, making it the go-to product for every scaling AI startup.

4. LayerMarketplace - Serves as the official NFT platform on LayerAI, facilitating the trading of data capsule NFTs. Upon launch, the Layer Marketplace will provide liquidity to existing users through a secondary market where retail users can purchase data capsules.

5. Layer-2 Network - LayerAI builds its own zero-knowledge layer-2 network on top of Ethereum, using a low-cost, secure, safe, and private zkRollup technology to turn data into a valuable asset.

As part of the expansion to LayerAI Layer-2 Mainnet & LAI as gas token deployment, LAI will function as the token for gas and block rewards.

Block rewards will start with an additional minted amount of 100,000,000 LAI tokens at the inception of LayerAI Layer-2 Mainnet. Then, a per block reward rate will start with an additional mint of the following block reward schedule:

Year 1: 183.916793506; Year 2: 190.258751903 per block.

These will be minted and distributed to the layer-2 validators as incentives to secure and bootstrap the network. Issued as block rewards.

About LayerAI's Layer-2

LayerAI is the Layer-2 for Data Monetization within AI Models. Built on its own Layer-2 network on top of Ethereum, LayerAI uses a low-cost, secure, and private zero-knowledge technology. This gives it a competitive edge as it is immensely scalable, with ultra-low-cost transactions.

Combined with advanced infrastructure—such as data capsules, AI tools, and a pluggable earn launcher— LayerAI creates a blockchain that enhances the global economy with AI-driven economics.

LayerAI has recently launched the testnet of its upcoming Layer-2, featuring functions such as token faucets, NFT transactions, LAI tokens as gas, and asset swaps within the LayerAI Ecosystem.

In just under two months, the testnet has gained significant traction, surpassing 200,000 transactions and 300,000 wallets, positioning LayerAI’s upcoming mainnet to become one of the most widely adopted Layer-2s for real builders.

Approve LayerAI Mainnet Token Deployment on Native Layer-2: LAI as Gas & Block Rewards

LayerAI is set to make significant advancements with the upcoming launch of its mainnet and deployment of the mainnet $LAI token, which will serve as the network’s gas token and block rewards.

In this vote, by voting yes, you express your support for this governance proposal and the future of LayerAI.