AltLayer is to Ethereum as Dymension is to Cosmos.

Infrastructure to easily launch modular blockchains is all the rage, as is restaking. AltLayer is an emerging player in both.

Here's a rundown on the value AltLayer plans to provide and how the $ALT token will be used 🧵

Research /messari • Crypto explainooor 🧵 • Chicagoan nomading Latam 🌎

Another customization?

Optimistic - Optimistically assume transactions submitted by sequencers to be valid, relying on fraud proofs to verify state.

OR

Zero-knowledge (ZK) - Proactively verify transactions to be valid, relying on ZK proofs to verify state.

Rollups that are created can be built using tech stacks like the OP Stack, Arbitrum Orbit, ZKStack, and Polygon CDK.

Still, restaked rollups cannot be launched today. EigenLayer is yet to launch.

Once all goes live later this year, this is how the modular layers will look:

Execution - On the AltLayer-created rollup.

Settlement + Consensus - On Ethereum while leveraging EigenLayer restaking for consensus.

Data Availability - On networks like Celestia, NEAR, and Avail where transaction data will be published by sequencers.

What value does AltLayer provide?

It stems from three “Actively Validated Service” (AVS) components that nodes run by EigenLayer's AVS operators will be able to opt-in to support.

"SQUAD" is the first.

Designed for decentralized sequencing, SQUAD operators run sequencers that execute transactions on AltLayer-created rollups.

AltLayer also plans to offer its own sequencer set through ”Beacon Chain” that rollups can leverage for sequencing services.

"VITAL" is the second.

Designed for decentralized verification, VITAL operators verify rollup states that are submitted by sequencers. This is done by conducting fraud proof challenges for optimistic rollups or generating ZK proofs for ZK rollups.

"MACH" is the third.

Designed for faster finality, MACH operators leverage restaked assets to attest to the validity of an AltLayer-created rollup’s state.

So... what will the ALT token do? It's planned to be used as:

(1) payment for protocol fees
(2) protocol incentives
(3) staking as an economic bond
(4) governance

Details on how exactly these four uses will function are limited, but here's what we know:

Protocol Fees - ALT tokens will be used to pay “intra-network services.” TBD on what this means.

Protocol Incentives - ALT tokens will be distributed to EigenLayer operators to opt-in to support AltLayer’s AVS components (SQUAD, VITAL, MACH).

Staking - Staked ALT will be used alongside restaked assets on EigenLayer to provide security to AltLayer-created rollups. ALT would serve as a slashable economic bond.

Governance - ALT tokenholders are planned to be able to vote on governance proposals.

While AltLayer's full suite of services has yet to go live, ALT incentives could drive future adoption:

• 1.2 billion ALT (12% of the max supply) remains for future airdrop seasons.

•  2.0 billion ALT (20% of the max supply) remains to incentivize EigenLayer's AVS operators.

Summaries aside, the new Messari Diligence Report on AltLayer and the ALT token is live!

Enterprise subscribers wanting to get the most detailed information can reach out about the full report below.

Summaries aside, the new Messari Diligence Report on AltLayer and the ALT token is live!

Enterprise subscribers wanting to get the most detailed information can reach out about the full report below.

https://messari.io/project/altlayer/diligence-report

Despite launching its token, AltLayer is still in its early stages.

The project aims to enable developers to seamlessly launch modular Ethereum rollups through its Rollups-as-a-Service (RaaS) Launcher.

This will include restaked rollups leveraging EigenLayer!