The Token Airdrop has been opened to provide a comprehensive interpretation of the new L2 Mode Network

Written by: Teahouse Little Er'er

####1. Project Brief Introduction

Mode Network is a modular Layer2 network focused on the Decentralized Finance track, built on Optimism's Bedrock upgrade, which enables rapid development and deployment of EVM-compatible decentralized application (DApp) and Money Laundering drop by 95%.

Mode Network is known for its innovative revenue-sharing model, which aims to empower developers and users to create a world-class app ecosystem and be rewarded directly through referral and contract-guaranteed revenue. Rewarding developers and users by distributing sequencer revenue not only increases the Decentralization of Decentralized Finance, but also allows more long people to benefit from network activity.

####2. Core mechanics

#####2.1 Optimistic Rollups

Optimistic Rollups used by Mode Network is a Layer 2 scaling scheme designed to increase Ethereum's scalability and reduce transaction costs. This technology is achieved by running a separate execution layer on top of the Ethereum Mainnet, which significantly increases the speed of transaction processing without sacrificing security. Here's a more detailed explanation of the optimized volume technology used in Mode Network:

2.1.1 Principle and working mechanism

1. Batch Processing:

Optimized volume technology works by combining long transactions into a single batch and then submitting the data for those transactions to the Ethereum Mainnet all at once. This approach reduces the need for each transaction to be independently transitioned and validated, thereby dropping transaction costs.

2. Latency confirmation:

In an optimized volume, a transaction is confirmed on the Layer 2 as soon as it is included in the batch, without waiting for confirmation from the Ethereum Mainnet. This provides a fast trading experience. However, the ultimate validity of these transactions still depends on subsequent verification on the Mainnet.

3. Proof of fraud proof:

Optimizing volumes relies on the "optimistic" assumption that all transactions and batches are done honestly. If someone believes that a batch contains fraud, they can submit a fraud proof to challenge the batch. If the challenge is successful, the fraudulent batch will be reversed and the related transaction will be rollback.

4. Rollback and Security:

Optimized volumes provide an extra layer of security, as any transaction must eventually be resolved on the Ethereum Mainnet. This means that even if a mistake or malicious behavior occurs on Layer 2, it can be corrected on the Mainnet, guaranteeing the safety of funds.

2.1.2 Features and Benefits

Scalability: By executing transactions on the Layer 2 and sending only batches of data to the Mainnet, Optimized Volumes dramatically reduces the need for Ethereum Mainnet resources and improves the overall scalability of the network.

Cost efficiency: Reduces the number of transactions that must be made directly on the Ethereum Mainnet, significantly drop user Money Laundering.

User experience: Provides near-instant trade confirmations, improving the user experience, especially for applications such as exchanges or games that require fast trade confirmations.

Compatibility: Optimized volume technology supports the Ethereum Virtual Machine (EVM), allowing developers to seamlessly migrate existing Ethereum applications to Mode Network.

#####2.2 Sequencer Fee Sharing

Mode Network's sequencer fee sharing mechanism is an important part of the network's core economic model, which aims to incentivize developers to create and maintain applications on the platform while increasing user engagement.

This mechanism is achieved through the following key features:

2.2.1 Concept of Sequencer Fee

In Layer 2 solutions that use optimized volume technology, the sequencer is a key role in collecting and ordering transactions in the network and then submitting them to the Ethereum Mainnet in bulk. This process requires a fee to be paid to the Ethereum Mainnet, but since the transactions are processed in batches, the average cost per transaction is significantly drop. The sequencer thus generates revenue in the network, which is largely derived from Money Laundering fees paid by users.

2.2.2 Cost Sharing Mechanism

1. Income distribution:

Developer incentives: Mode Network has created a mechanism that allows developers to earn a share of the sequencer's revenue by registering their smart contracts to a specific fee-sharing contract. This practice encourages developers to create and maintain high-frequency trading applications, as these applications are able to generate more long transactions, resulting in more long sequencer revenue.

User Rewards: A portion of the sequencer revenue is also used to reward network users, especially those who join the network by referring new users. This referral mechanism encourages existing users to promote the network and helps the network increase its user base and activity.

2. Contract Registration:

Developers must link their smart contracts with fee-sharing contracts to benefit from them. This usually involves programming the contract to include specific code snippets to ensure that transactions are properly tracked and rewards are distributed.

3. Transparency and Automation:

The specific proportions and distribution rules of fee sharing are transparent on the Mode Network and are automatically executed through smart contracts, ensuring the fairness and transparency of the operation. This automated allocation mechanism reduces potential disputes and enhances trust in the network.

2.2.3 Advantages and Impact

Incentivize innovation: By providing financial incentives to developers, Mode Network encourages more long developers to participate and innovate, resulting in more long and long applications.

Increased activity: The user reward mechanism increases user engagement, making users more inclined to use and recommend Mode Network, thereby enhancing the activity and expansion rate of the network.

Ecosystem rise: With the advent of more long and high-quality applications and the increase in the user base, the entire ecosystem has been able to grow rapidly, enhancing the overall value and attractiveness of the network.

#####2.3 Modularity & Co-op

Mode Network's modular and cooperative model is a core component of its Blockchain architecture and operational strategy, which is designed to improve the network's flexibility, scalability, and user engagement. By implementing these strategies, Mode Network aims to build a longing, efficient ecosystem that supports longing application development and fosters collaboration among various stakeholders. Here's a closer look at Mode Network's modularity and collaboration:

2.3.1 Modular Architecture

1. Definition and Purpose:

Modularity on Blockchain refers to the decomposition of network functions into independent components or modules, each of which is responsible for handling a specific task. This design allows for more flexible development and maintenance, while also allowing the network to better adapt to changing technology and market demands.

2. Implementation:

Consensus layer: Mode Network may use independent modules to handle transaction verification and consensus mechanism to ensure the security and integrity of the network.

Execution layer: A modular layer for executing smart contracts and processing transactions, which can optimize resource usage and increase processing speed.

Data Layer: Handles data storage and access independently for efficiency and scalability.

Interaction layer: Responsible for the interface with users and external systems, such as APIs and front-end interfaces, to ensure a good user experience and system interoperability.

3. Advantages:

Flexibility: Modularity allows individual parts of the network to be quickly adapted or upgraded without affecting other modules.

Maintainability: Each module is independent, easy to manage and optimize, and reduces potential errors and security risks in the system.

Scalability: The ability to scale certain modules individually as needed, without having to refactor the entire network.

2.3.2 Co-op mode

1. Cooperative Ecosystem:

Mode Network encourages and supports collaboration between various stakeholders, including developers, users, investors, and partners, to jointly drive the growth and value-added of the network.

2. Incentive mechanism:

Developer and user incentives: Incentivize developer innovation and user participation by distributing network revenue (e.g., sequencer fee sharing), providing development funding support, and holding competitions.

Partner incentives: Establish cooperative relationships with industry partners to jointly develop solutions and share resources and market opportunities.

3. Governance Model:

Decentralization Governance: Mode Network may employ a Decentralization governance model that enables network users and developers to participate in the decision-making process, such as voting on key network upgrades and policy changes through Token voting.

Transparent communication: Regularly announce the progress and financial status of the project, and maintain transparent information and open communication channels within the ecosystem.

4. Technical cooperation and integration:

Standardized Interfaces: Provides standardized programming interfaces (APIs) that allow third-party applications and services to be easily integrated into the Mode Network.

Cross-chain interoperability: Develop features that support interoperability with other Blockchain technologies to expand the adoption and market acceptance of Mode Network.

#####2.4 Mode Network Bridge

The Mode Network Bridge is a key component that Mode Network offers in its Layer 2 solution, allowing users to efficiently and securely transfer assets between Ethereum Mainnet and Mode Layer 2 networks. The main purpose of this bridge is to simplify cross-chain operations for users while maintaining a high level of security and low transaction costs.

Here's a closer look at the Mode Network Bridge:

2.4.1 Functions and working principles

1. Transfer of Assets:

The Mode Network Bridge enables users to transfer Crypto Assets such as Ethereum (ETH) and other ERC-20 Token from Ethereum Mainnet to Mode Network. This transfer is achieved by locking assets on the Mainnet and issuance of the corresponding number of tokens on Layer 2, thus maintaining the balance of assets on both sides.

2. Two-stage operation:

Deposit: The user first deposits assets from the Ethereum Mainnet into the bridge's smart contracts. Once the asset is confirmed to be deposited, an equal amount of Token will be minted on Mode Layer 2 for users to use.

Withdrawal: When a user wants to withdraw an asset from Mode Layer 2 back to the Ethereum Mainnet, the corresponding Layer 2 Token will be burned and the smart contracts on the Mainnet will release the same amount of assets to the user.

3. Optimize Transaction Cost:

By centralizing cross-chain transactions, Mode Network Bridge can significantly drop users' fees when transferring cross-chain funds. This is achieved by batching transaction confirmations on Layer 2 and using optimized volume technology to reduce the need for Ethereum Mainnet resources.

2.4.2 Security features

Smart contracts security: Mode Network Bridge uses fully tested and audited smart contracts to handle the locking and release of assets, ensuring the security of transactions and the safety of funds.

Distributed trust: Although bridges themselves rely on smart contracts, Mode Network may employ additional security measures, such as multisignatures or distributed trust, to further strengthen the security of cross-chain transactions.

2.4.3 User Experience

Simplified interface: Mode Network Bridge is designed with a user-friendly interface that makes cross-chain operations simple and intuitive, even for non-technical users.

Fast Transfers: Transfers through the bridge can be completed faster than transactions directly on the Ethereum Mainnet because it takes advantage of the efficient processing power of Layer 2.

2.4.4 Application Scenarios

Decentralized Finance integration: Users can leverage the Mode Network Bridge to quickly transfer assets to the Mode Network and participate in various Decentralized Finance applications, such as lending, trading, and liquidity mining.

Cross-chain interoperability: Bridges not only serve between Ethereum and Mode Network, but can also theoretically be extended to connect to other compatible Blockchain networks, enhancing the interconnection and Interoperability of the entire ecosystem.

####3. Ecosystem

Mode Network's ecosystem is built around its Layer 2 solution, which aims to improve Ethereum's scalability and efficiency while dropping costs for users.

Its ecosystem is designed with an emphasis on innovation, collaboration, and user engagement, with longing key elements:

#####3.1 Economic Model

Fee sharing mechanism: Through the sequencer fee sharing mechanism, the network allocates a portion of the Money Laundering fee to developers and users. This mechanism not only encourages developers to create and maintain applications on the platform, but also incentivizes users to refer new users to the network.

Incentives: Include Airdrops, Rewards Programs, and Referral Rewards to increase the attractiveness of the network and the activity of users.

#####3.2 Developers & Apps

Developer support: Mode Network provides comprehensive developer support, including documentation, development tools, and software development kits (SDKs), making it easy for developers to build and deploy applications on the web.

DApps ecosystem: DApps existing or under development within the ecosystem include DEXs (DEXs), lending platforms, games, and other financial instruments. These applications take advantage of Mode's low cost and high efficiency to provide users with a longest range of services.

#####3.3 Community & Collaboration

Community-driven: Mode Network strongly promotes a community-driven development model, enabling users to directly participate in the network governance and decision-making process through community voting and feedback mechanisms.

Partnerships: Build partnerships with other Blockchain projects, development teams, and businesses to expand the ecosystem's capabilities and services.

#####3.4 Governance

Decentralization Governance: Mode Network adopts a Decentralization governance model that allows coin holders to vote on key network updates, use of funds, and policy changes.

Transparency: Maintain transparency in the operation of the ecosystem and enhance community trust and participation by publishing regular updates and financial reports.

#####3.5 Ecosystem Projects Launched

Mode Network's ecosystem is rapidly expanding, especially in the Decentralized Finance space. A number of key projects on the platform have already gone live, each showcasing its unique features and market positioning. These projects include:

Ether.fi: A Ethereum-based Liquidity re-stake protocol that allows users to re-stake ETH or other Liquidity assets to generate lrt Token and thus earn eETH. Leading the liquidity re-stake track, TVL reached $2.67 billion.

Renzo: Another Liquidity stake protocol also allows users to stake assets to obtain lrt Token and exchange them for ezETH at a ratio of 1:1. It ranks third in its category with a TVL of $990 million.

IONIC: A lending protocol that aims to provide the best lending Intrerest Rate and design an economic model that balances the interests of both borrowers and borrowers. The TVL is $61 million and is backed by MetaCartel Ventures, Ohm, and Mode.

####4. MODE Token

#####4.1 Uses and Functions

Governance: MODE Token allows holders to participate in the governance of the network, voting on key network upgrades and governance proposals.

Incentive Program: Used to encourage users and developers to participate in various activities of the Mode Network, such as development contests and user participation activities.

Decentralized Finance and Community Sponsorship: The MODE Token supports integrated Decentralized Finance events and community sponsorships to power projects and community events within the network.

Ecosystem Development: MODE Tokens are used to support the expansion and enhancement of the entire Mode ecosystem, including funding new projects and partnerships.

#####4.2 Supply / Distribution Ratio

Airdrop: 35% of the MODE Token is allocated to Airdrop activities by users and developers to encourage community participation and contribution.

Investors: 19% of the MODE Token is distributed to early investors, and these funds are used for the initial capital and development support of the project.

Core Team: 19% of the MODE Token is allocated to the project's core contributors and team members to incentivize their continued work and contributions.

On-chain platform and treasury: 27% of the MODE Token is retained in the on-chain platform and treasury to support the long-term development and operation of the project, as well as possible future financing needs.

Total Supply: 10 Billion MODE

Initial circulating supply: 1.3 billion MODE

#####4.3 Airdrop

4.3.1 Airdrop Overview

Total Token Supply: The Mode Network Airdrop will distribute a total of 550 million MODE Tokens, of which 400 million will be used for the credit Airdrop

Airdrop purpose: Encourage early participants through Airdrop and incentivize developers and users to contribute to the ecosystem.

4.3.2 Ways to earn Airdrop Credits

1. Bridged assets:

Ethereum Mainnet bridge assets such as ETH, USDT, USDC, or WBTC from the Mode Network.

The longer the bridge's assets remain on the Mode Network, the more long points earned.

Bridges within the first seven days of the event will earn a 12x point bonus.

2. Invite fren:

By referring fren participating, you can be rewarded with 16% of the points earned by the referred user.

3. Use DApps:

2x points can be earned by interacting with designated Decentralization Applications (DApps) such as Eigenlayer, RenzoProtocol, Layerbank, Ionic, Etherfi.

These DApps may involve different ways of interacting such as swapping, staking, lending, etc.

Airdrop Points Maximization Strategy

Points optimization tips: You can maximize points earnings by performing asset operations such as staking, lending, and swapping in longest DApps within the Mode Network.

Exchange strategy: For example, swap ETH for EZETH on Kim Exchange, then use EZETH to stake and borrow on Layerbank, and finally deposit EZETH on Ionic to earn more long points.

####5. Team/Financing

Mode Network's team is led by two key leaders, James Ross and Federico Sarquis, with deep industry experience and extensive connections.

James Ross: Founder, graduated in Economics and Philosophy from the University of Sussex, UK, worked as a consultant at Hashflow and invested in Eigenlayer and Ethena.

Federico Sarquis: Technical lead, has organized events for Ethereum Argentina and has extensive technical and community experience.

The 15-member team works remotely for enhanced operational flexibility and global collaboration. This structure helps to respond quickly to market changes and technological advancements.

In terms of funding, in October 2020, Mode Network closed a $9.75 million funding round. In addition to this, the project has received a grant of up to 2 million OP Token from the Optimism Foundation to support users rise incentives.

A seed funding round of an unknown amount was also completed in April 2024, led by KR1.

####6. Project evaluation

#####6.1 Track Analysis

Mode Network belongs to the Layer 2 solution track, which focuses on improving transaction speed and drop cost through a layer 2 network built on top of Ethereum, while maintaining security and compatibility with Ethereum Mainnet.

Here are some similar projects on the same track as Mode Network:

1.Optimism

Introduction: Optimism is a Layer 2 scaling solution that uses Optimistic Rollups technology to improve the scalability and drop Money Laundering of Ethereum.

Features: It drop fees by verifying the data availability of latency transactions and increasing transaction throughput.

2.Arbitrum

Summary: Arbitrum is also an Layer 2 solution with optimized volume technology, which drop fees by executing transactions off-chain and submitting only the resulting data to the Ethereum Mainnet.

Features: Arbitrum emphasizes the efficiency and security of its optimized volume implementation, especially when dealing with large-scale applications.

3.Polygon

Introduction: Polygon (formerly known as Matic Network) is a Layer 2 solution with a longing architecture that provides a longing chain system designed to solve the scalability problem of Ethereum.

Features: Polygon offers long Layer 2 solutions (such as sidechains, zk, and optimized volumes) that allow developers to choose the most suitable scaling solution for their needs.

TVL has been steadily rise since the launch of the Mainnet, ranking 13th among all Layer2 networks as of March 19, 2024, with a TVL of $162 million, an average daily tps of 1.62, and a median GAS of 0.001Gwei, which translates to an actual spend of less than $0.01, with a total of 2.12 million transactions in the past 30 days.

#####6.2 Project Advantages

1.Technical Advantages

Optimized volume technology application: Mode Network uses optimized volume technology to increase transaction speed and drop costs. This technology significantly reduces the burden on Mainnet by processing transactions on the Layer 2 and submitting only batch transaction data to the Ethereum Mainnet while ensuring the security and integrity of the transaction.

Modular Architecture: Mode's modular design allows developers to select and integrate features as needed, making Mode Network suitable for long applications, from simple payment systems to complex financial products.

2. Ecosystem & Community Incentives

Strong Ecosystem Incentives: Mode Network actively incentivizes community engagement and ecosystem expansion through its Token Economic Model and Airdrop Campaign. For example, its Airdrop program aims to boost the community's rise and activity by distributing tokens to early users and participants.

Developer support: Mode Network provides strong developer support and funding to encourage developers to innovate and develop apps on its platform. This includes providing funding, tools, and resources to drop development efforts and accelerate time to market.

3.Performance and cost efficiency

Transaction Cost drop: By achieving significant drop Money Laundering, Mode Network provides users with a cost-effective trading platform, especially for those applications that require high-frequency trading, such as Decentralized Finance and gaming.

Enhanced transaction processing capabilities: Compared to traditional Ethereum networks, Mode Network is able to handle higher volumes, reducing transaction latency and improving user experience.

#####6.3 Project Disadvantages &Challenges

1.Competitive pressure

Fierce market competition: Mode Network is not without competition in the Layer 2 solution space. It needs to compete with other established solutions such as Polygon, Arbitrum, Optimism, and zkSync, which already have a solid user base and broader market acceptance.

Constant need for innovation: To remain competitive, Mode Network needs to continuously innovate and improve its technology and services, which is especially important in the rapidly changing Blockchain space.

2.User and market acceptance

Velocity of user adoption: While Mode Network offers significant performance benefits, the velocity of migration and adoption of users can be affected by existing habits and platform dependencies. It may take time for users to evaluate and adapt to the new platform.

Market education: The market needs to be educated to improve understanding of the Mode Network and its benefits, especially when dealing with non-technical users.

3.Economic and Financing Risks

Funding Dependence: The development and expansion of Mode Network is heavily dependent on external financing. Fluctuation in the market or loss of investor confidence may affect its ability to raise funds.

Token Value Fluctuation: As a platform with native Tokens, the development of Mode Network may be affected by the performance of its Token market. Fluctuation in the value of the Token may affect the stability and attractiveness of the project.

####7. Conclusion

Overall, Mode Network, as an innovative Layer 2 solution, aims to greatly improve Ethereum's transaction efficiency and scalability through its optimized volume technology. By introducing a modular architecture and incentivizing rich tokenomics, Mode Network not only strives to drop the Transaction Cost of users, but also actively encourages community participation and ecosystem development through Airdrop and other incentives.

With the continuous advancement of Blockchain technology and the increasing maturity of the encryption market, Mode Network's vision is to be a key force in driving the rise of the Ethereum ecosystem, providing a faster, more affordable, and more scalable platform for users and developers. With its technological advantages and market strategy, Mode Network is expected to play an important role in the future development of Blockchain and drive the entire industry forward.