# L3 Orbit Ecosystem Fund **URL:** \ **Category:** Archived Proposals\ **Created:** [April 3, 2024, 8:39am UTC](https://forum.arbitrum.foundation/t/l3-orbit-ecosystem-fund/22989 "2024-04-03T08:39:58Z")\ **Posts on this page:** 1\ **Showing post:** 4
**Author:** ![maxlomu](https://yyz1.discourse-cdn.com/flex029/user_avatar/forum.arbitrum.foundation/maxlomu/32/1282_2.png) [@maxlomu](https://forum.arbitrum.foundation/u/maxlomu)\ **Post date:** [April 7, 2024, 11:01am UTC](https://forum.arbitrum.foundation/t/l3-orbit-ecosystem-fund/22989/4 "2024-04-07T11:01:17Z")
gm @cryptobyrde, thanks for sharing this proposal. I agree that the L3 mechanism can potentially be one of the greatest growth catalysts for Arbitrum - the number of projects I spoke with in the last month that are launching their own appchain is considerable. **We should absolutely lean into that as a DAO too.** I believe that Arbitrum TVL will soon be measured by the aggregated L3s settling on Arbitrum, similarly to what is done with Ethereum. I am also intrigued by the reward system you suggested (liquidity provision instead of giving ARB directly to teams), however, I think those projects would probably appreciate more attracting liquidity onto their L3 rather than Arbitrum itself (as I mentioned, this would still work from a holistic perspective). **Some thoughts:** - We should design some early incentives to help projects bootstrap users and liquidity (this could be an independent program) - I think there should still be a manual review of every L3 that is set to receive the rewards (how easy is it to game the process of attracting fake TVL, then dump the token paired against ARB? We should have safeguards in place until the process is battle tested) - We also need to consider the business model: from [here](https://forum.arbitrum.foundation/t/the-arbitrum-expansion-program-and-developer-guild/20722), we know that > [@The Arbitrum Expansion Program and Developer Guild](https://forum.arbitrum.foundation/t/the-arbitrum-expansion-program-and-developer-guild/20722/1): > > While L3s that settle to Arbitrum One or Nova will not be required to share revenue with the Arbitrum DAO, L2s as well as L3s on top of other chains will have to share a portion of their revenue. Shall we also include incentives for these alternative-settlment L2s? - We need to coordinate with the Arbitrum Foundation / OFL, as we don’t want to create redundant (or even conflicting) incentives vs what is being done already. - I don’t believe we should buy any token - Is there any other support we can provide as a DAO? Happy to further collaborate on the evolution of this. --- _[View the full topic](https://forum.arbitrum.foundation/t/l3-orbit-ecosystem-fund/22989)._