The halt of the L3 Degen chain has sparked concerns and debates in the crypto community.
In a surprising turn of events, the L3 Degen Chain, a Layer 3 Ethereum-based blockchain developed for the Degan meme token, has ceased block production for over 11 hours.
The L3 blockchain, known for its innovative decentralized finance (DeFi) solutions features, experienced a significant disruption without any clear explanation. The outage has interfered with transaction confirmations and network functionalities.
DEGEN is one of the biggest coins in the Farcaster network. Its role in facilitating transactions and enhancing various functions and activities in the Degen Chain ecosystem is essential. However, the block production pause has impacted DEGEN’s functionality and liquidity. Stakeholders seek clarity on the underlying issues, but developers have not yet issued a statement.
What is DEGEN Chain?
Degen Chain is also a Layer 3 blockchain built with Arbitrum Orbit dedicated to the Degen community on Warpcast. The platform uses distinct features and the Gas token “DEGEN,” an important component in the broader Farcaster ecosystem while functioning on Syndicate’s innovative infrastructure.
The project was founded by Jacek Trociński, who had previously worked on tokens with similar tokenomics, such as Blur (BLUR) and Uniswap (UNI). The primary objective behind the project is for users to earn points if they are active in the channel. Several points were awarded to users who participated in the tasks or held certain NFTs.
Initially, one DEGEN token equaled one point, with users receiving rewards through an airdrop. As community interest grew, Trociński observed an increase in developers building applications utilizing DEGEN as the native token.
The founder noted that DEGEN is not designed to be capable of doing anything “technically different” but operates as an “application layer chain.”
Trociński believes that if the DEGEN chain eventually becomes a memecoin enabling applications to build games and design fun applications, it would become vastly valuable.
The live price of the DEGEN token is $0.01856. At the time of writing, it has a market cap of $231.15 million and a volume of $28.03 million.
