What is Mode Network?

What is Mode Network?

Mode Network is a DeFi-focused Layer 2 solution built on the OP Stack, designed to enhance the decentralized finance landscape. It aims to empower developers and users by fostering a robust ecosystem of top-tier applications through innovative on-chain economic mechanisms. Mode simplifies deployment for EVM-compatible projects, making it easier for developers to scale applications and provide higher yields for users.

The network's core features include Sequencer Fee Sharing and developer airdrops, which reward contributions to ecosystem growth. Mode's integration of Optimism’s Bedrock upgrade significantly reduces transaction fees, positioning it as an attractive platform for dApp developers.

By focusing on community support and low fees, Mode aligns with the broader vision of the Optimism Superchain, establishing itself as a key player in the DeFi industry.

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Mode Sequencer Fee Sharing

Mode Network's Sequencer Fee Sharing (SFS) system is designed to directly reward developers by allocating a portion of the network's sequencer fees. This mechanism not only incentivizes developer contributions but also fosters growth and diversity within the Mode ecosystem. Here’s how it works:

• ‍Registration and NFT Issuance: Developers register their smart contracts with the Fee Sharing Contract and receive an NFT as a claim ticket for accrued fees.‍
• Earning Fees: A portion of transaction fees from registered smart contracts is directed to the Fee Sharing Contract, building up over time.‍
• NFT Flexibility: The NFT can represent multiple contracts, increasing its value and utility.‍
• Transparent Calculations: An offchain component ensures accurate and fair fee distribution calculations.‍
• Predictable Withdrawals: Developers can withdraw their earned fees at the end of each epoch, ensuring a steady income stream.

This system not only provides financial incentives for developers but also reinforces Mode's dedication to a collaborative and supportive developer environment.

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What is Mode Flare L3?

Mode Flare L3 provides a Layer 3 solution that enables developers to launch app-specific chains with low fees and high-performance infrastructure, leveraging Optimism for scalability and Celestia for data availability. This platform supports blockchain applications with transaction fees below $0.005, rapid deployment, and EVM compatibility, offering a solid foundation for DeFi innovation.

With Mode Flare L3, developers gain significant advantages, including reduced operational costs, streamlined scalability, and robust go-to-market support. This initiative demonstrates Mode's dedication to fostering a dynamic ecosystem by providing infrastructure grants and sequencer fee sharing, encouraging the creation of cutting-edge blockchain projects.

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Mode Tokenomics

Mode’s tokenomics are structured to decentralize the network and reward contributors to its growth. The total supply of MODE tokens is fixed at 10,000,000,000, with an initial circulating supply of 1,300,000,000. Distribution is designed to incentivize users, developers, investors, and core contributors.

• User and Developer Airdrops: 35% in total, 5.5% for Airdrop 1, 5% for Airdrop 2, remaining for future airdrops
• Investors: 19% with a 12-month cliff from TGE, followed by a 24-month linear vest
• Core Contributors: 19% with a 12-month cliff from TGE, followed by a 24-month linear vest
• Foundation and Onchain Treasury: 27% to fund initiatives and distribute tokens as user incentives via the Onchain Smart Treasury

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Bottom Line

In conclusion, Mode Network is a DeFi Layer 2 solution built on the OP Stack, offering robust developer incentives through Sequencer Fee Sharing and airdrops. By integrating Optimism's Bedrock upgrade, Mode ensures significantly reduced transaction fees, enhancing scalability for EVM-compatible projects. This strategic focus on low fees, technical support, and ecosystem rewards positions Mode as a pivotal player in the Optimism Superchain and the broader DeFi landscape.