ALT, the native utility token of the AltLayer platform, supports a unique ecosystem designed to launch and optimize native and re-collateralized Rollups, compatible with multiple stack technologies such as Optimistic Rollup and ZK Rollup. AltLayer is conceived as an open and decentralized protocol framework designed specifically for Rollups, and its innovation lies in the introduction of the concept of "re-collateralized Rollups".

The core of this concept is that AltLayer can accept assets from different rollup stacks (including but not limited to OP Stack, Arbitrum Orbit, Polygon CDK, ZK Stack, etc.), and provide these assets with enhanced security, higher levels of decentralization, enhanced interoperability, and fast transaction finality based on crypto-economics through its unique re-collateralization mechanism.

The ALT token plays multiple key roles in the AltLayer ecosystem:

Economic collateral: ALT tokens and re-collateralized assets together constitute part of the economic collateral to ensure the stable operation of the system. This part of the collateral can be reduced as a penalty when any malicious behavior is detected.

Governance participation: ALT token holders are given voting rights and can participate in and decide on governance issues of the AltLayer platform, ensuring that the decision-making process of the platform is both democratic and transparent.

Protocol incentives: In order to encourage the active contributions of all participants in the ecosystem, AltLayer will issue ALT tokens as rewards to operators who provide services to promote the prosperity and development of the ecosystem.

Protocol fee payment: Within the AltLayer network, all participants need to use ALT tokens to pay for various service fees to ensure smooth and efficient operation of the network.

In summary, AltLayer's core product, re-staking Rollups, through its innovative mechanism design, not only improves the overall performance and security of Rollups technology, but also greatly enriches the diversity and interoperability of blockchain applications. $ALT