Mode Network's Journey from $8M to $570M TVL
With initiatives like Sequencer Fee Sharing, Mode Network has established a cooperative environment that rewards contributions, greatly encouraging user and developer participation.
Over the past year, the cryptocurrency sector has witnessed a surge in Layer 2 launches, each varying in their levels of public attention and success. Mode Network is a notable entry in this space, having recently rolled out its Layer 2 blockchain on top of Ethereum, utilizing the Optimism Superchain framework.
đź’ˇ
Optimism Superchain framework facilitates a collaborative superchain ecosystem, linking multiple Layer 2s to enhance interoperability and reduce network congestion. Superchain networks share the same technical and social infrastructure, eliminating the need for bridging and network switching. Other notable members of the Superchain include Base and Worldcoin.
To stand out from its competitors, the Mode team has integrated cooperative game theory into its blockchain network, creating an environment that encourages and rewards collaboration and contribution. This strategy is designed to promote network growth by motivating developers to participate in the network’s economic systems, facilitating the development of a wide variety of blockchain projects.
An innovative feature that encourages cooperation and sets Mode apart from other Layer 2 networks is Sequencer Fee Sharing. Mode integrates contract revenue-sharing incentives directly into its protocol layer. This system motivates applications and users who contribute to scaling the Mode blockchain to collaborate effectively, allowing them to directly earn a share of the network’s profits.
Mode was initiated by James Ross, an entrepreneur with a background in launching and directing blockchain marketing firms. Among his projects are the Hype Web3 marketing agency and the GrowingWeb3 blog.
In terms of funding, Mode Network successfully closed a funding round in October 2020, securing $9.75 million. Additionally, it received a strategic grant of 2 million OP tokens from Optimism (valued at approximately $4.5 million).
Recently, Mode launched an airdrop campaign, distributing tokens to users who participate in the network. The project has finished Season 1 and is currently in Season 2 of its campaign. Users earn points by bridging ETH and various tokens and interacting with dApps on the chain, which are then converted to tokens.
This approach has notably increased Mode's Total Value Locked, which skyrocketed from approximately $8 million in February to over $570 million.
However, despite the successful launch and operational achievements, the market has shown tepidity towards Mode’s token. It initially traded above 15 cents but has since dropped more than 70%, now hovering around $0.04, and $50 million market capitalization.
Despite these market fluctuations, Mode Network’s innovative features and strategic campaigns position it as a noteworthy participant in the evolving Layer 2 ecosystem. If its TVL continues to grow, attracting more users and developers, the price will likely follow.
Members Discussion