NEW ESSAY: The Economics of L3s

L3s promise 10,000x lower fees, but face major economic hurdles. Our analysis reveals the challenges for L3s to reach profitability, current L3 use cases, and the future pathways to valuable L3 networks. 🧵 2/ Our analysis shows that L3s struggle to breakeven unless they achieve L2-like transaction volumes (50M+ per month) or keep fees within 3x of L2s.

Today, L3s are used as "cost centers" and an economic tool to bootstrap network development and app growth.

1/ Today, we’re excited to announce the launch of Degen Chain, an L3 for the @degentokenbase community built with @arbitrum Orbit, @base for settlement, and AnyTrust for DA.

The chain’s native gas token is $DEGEN, making it one of the first community tokens with its own L3. 2/ Syndicate is thrilled to be the L3 infrastructure partner for Degen Chain—we worked with providers like @conduitxyz for the rollup, @decentxyz for the bridge, @airstack_xyz for data APIs, and more to be shared soon.

1/ We're excited to share that over the last year Syndicate has been building infrastructure to unlock the next wave of web3 products with leading startups and Fortune 100 companies.

Anyone can develop on our infrastructure starting today. 2/ Syndicate's new Transaction Cloud, APIs, and modular smart contracts radically improve the experience for developers (DX) and their end users (UX), making web3-powered products easier to build, grow, and use at mainstream scale.

Go to to get started. syndicate.io

1/ New Feature: Collective Allowlists ✅

You can now easily gate your Collective via allowlists. Curating your on-chain investing community just became easier than ever. 2/ To access the allowlist feature for your Collective, simply add '/merkle' to your Collective URL.

For example:
app.syndicate.io/collectives/0x…

You can then effortlessly hand-select who is allowed to mint by providing a list of wallet addresses and ENS domains.

🎙 "Crypto & Web3 in 2023"

💬 @alive_eth, General Partner @a16zcrypto

👥 Co-host: @SyndicatedTalks

🗓 Tue, Jan 24
⏰ 2pm PT // 5pm ET

Twitter Space:
twitter.com/i/spaces/1BdGY… Set a reminder to join the Twitter Space:

twitter.com/i/spaces/1BdGY…

1/ We're excited to announce new support resources for Syndicate's Chinese-speaking users focused on our Collectives primitive and ERC-721M.

We've seen incredible growth of Collectives over the last several weeks, reaching non-English speaking communities all around the world. 2/ 我们很高兴能再度为 Syndicate 的中文区用户推出新的支持资源，这些资源聚焦于 Collectives 原语和 ERC-721M。

最近几周，我们看到新建 Collectives 的数量有了惊人的增长，并拓展到了世界各地的非英语社区。

To revolutionize investing and the social networks that power it, we need our most committed partners by our side.

That's why we’re launching 'Syndicate Genesis - Limited', a closed Collective dedicated only to our closest supporters and contributors. Check your personal or club’s admin wallet (if you have a prominent investment club on Syndicate) to see if you've been airdropped an NFT from SyndicateNFTs.eth.

We'll be rolling out unique experiences for this community soon, so stay tuned 👀

1/ We're thrilled to announce that @BessemerVP has chosen Syndicate and our Collectives primitive to launch @SteelDAOxyz, the first fully on-chain scout network in venture capital. 2/ Read today's announcement from @BessemerVP:

https://twitter.com/BessemerVP/status/1577670005491085313

1/ Today, we're excited to launch Collectives, our first social networking & community building primitive for web3 ✨

They enable anyone to create on-chain social networks with ERC-721M NFTs that evolve with communities and are composable across web3. 2/ Anyone can easily launch a Collective for their community for just the cost of gas via our no-code tool 🪄

DAOs, companies, nonprofits, investment clubs, angel networks, scout networks, expert networks, friend groups, and more.

Start one today:
syndicate.io/collectives?la…

1/ We're excited to announce that Syndicate is now on @0xPolygon in partnership with @polygonstudios ✨

Polygon makes Syndicate’s investment clubs 1000x+ faster, cheaper, and more accessible to communities around the world.

Start a club on Polygon today: syndicate.io/clubs @0xPolygon @polygonstudios 2/ Starting an investment club as a DAO on Polygon has never been easier.

Quickly toggle between networks in Syndicate’s app.

Today, Syndicate’s smart contracts have been deployed to Ethereum Mainnet and Polygon, and we'll be supporting other chains in the near future.

1/ 🚨 Regulation Alert:

Sec. 204 of the new Crypto Bill announced by @SenLummis @SenGillibrand today proposes that DAOs are taxable entities that must be properly incorporated or organized under the laws of a jurisdiction.

What would this mean for DAOs?

gillibrand.senate.gov/news/press/rel… 2/ First, it would mean that DAOs will need to be properly organized, such as through an "LLC, corporation, partnership, foundation, cooperative or similar organization" and file/pay taxes beginning in 2023 and beyond. DAOs should consider preparing for this in the next 6 months.

1/ Today, we’re proud to announce that 50+ customers, partners and DAOs have strategically invested in Syndicate to take our project to the next level and help us democratize investing at scale ✨

This brings our total raised to over $28M in just a year.

syndicate.mirror.xyz/FD1B8JXgvW6bLU… 2/ At 9am PT (today), we're hosting a Twitter Space to talk with a few of our new partners @cartainc, @Uniswap, @circlepay, @Ledger, @opensea about how we'll be building "Investing Infrastructure for Web3" together.

Join us 🙌

twitter.com/i/spaces/1YpKk…

🛠️ New Feature Alert: ETH Clubs 🛠️

Syndicate's Web3 Investment Clubs now support native ETH deposits—so your club will be immediately ready to make on any on-chain investment or transaction.

Built for crypto-native NFT Collectors and DeFi trading groups—LFG and ape together 🚀 2/ While USDC is ideal for startup and venture-style investments, the native currency of NFTs and DeFi is ETH.

Club admins can now setup ETH deposits for new clubs on @SyndicateDAO—making it easier than ever to pool ETH for group buying NFTs and token investments.

1/ New Post: "What is an Investing DAO? Who Should Start One?" 🤔

by @jaesmail @SyndicateDAO

syndicate.mirror.xyz/AOSIC6tGoj-KxG… 2/ Investing DAOs leverage smart contracts to enable people to easily pool capital, invest, and run important community, operational, and governance processes—in support of DAOs' important higher order missions.

1/ Today, we're excited to introduce Web3 Investment Clubs, Syndicate’s first mainstream social investing tool built on Syndicate Protocol ✨

It transforms any Ethereum wallet into a powerful investing DAO in seconds for just the cost of gas.

syndicate.mirror.xyz/4p6a0nKpBYMSxo… 2/ Why Investment Clubs?

Investment clubs have been around for thousands of years. They're groups of people who pool capital to invest together—to share ideas, learn from each other, increase buying power, share risk, reduce transaction costs—and win together, as a community.

We're excited to announce the next major step in bringing our revolutionary protocol for investing to communities around the world.

To realize our important yet complex mission, we've raised $20m from 150+ investors, founders, operators, and creators.

syndicate.mirror.xyz/BYU6CUG4k4hRx7… In the next decade, investing will be decentralized, democratized & community-driven.

We're developing decentralized investing & social networking protocols, advanced legal tech solutions, & a platform that empowers communities to raise and invest capital like never before.

1/ Yesterday, the second Syndicate DAO launched: a community-run Ecosystem Fund backed by a major protocol.

It's a decentralized automated organization (DAO) enabling protocols and their communities to co-invest together in new projects.

Why it matters:

syndicate.mirror.xyz/0CCSHG5PQtjuqs… 2/ This is significant, because over the last year, protocol treasuries have grown exponentially. @Uniswap is $5B+. @compoundfinance is $2B+. @AaveAave is $1B+.

Protocol treasuries will soon become the biggest investors in the world. It'll reshape VC.

https://twitter.com/pridesai/status/1388322902416703488?s=20