Mode Network (MODE) - Blockchain Guide

Introduction to Mode Network

Mode Network positions itself as the DeFi-native L2, built on the OP Stack as part of Optimism’s Superchain. The network differentiates through revenue-sharing mechanisms that reward builders and users, creating alignment between the chain and its ecosystem participants.

The project launched during the L2 boom, joining the Superchain alongside Base and other OP Stack chains. Mode’s focus on DeFi primitives and yield optimization attracted significant liquidity, establishing it as a meaningful player in the increasingly competitive L2 landscape.

How Mode Works

OP Stack Foundation

Technical base:

Built on Optimism’s OP Stack
Optimistic rollup security
Ethereum settlement
Superchain interoperability

Revenue Sharing

Economic model:

Sequencer revenue shared
Developers earn from users
Referral rewards
Ecosystem alignment

DeFi Focus

Product positioning:

Native DeFi protocols
Yield optimization
Liquidity incentives
Builder rewards

Technical Specifications

Metric	Value
Type	Optimistic Rollup
Stack	OP Stack
Settlement	Ethereum
Ecosystem	Superchain
Focus	DeFi

The MODE Token

Utility

MODE serves multiple purposes:

Governance: Protocol decisions
Staking: Earn rewards
Ecosystem: Incentive programs
Alignment: Holder benefits

Tokenomics

Distribution approach:

Community airdrop
Ecosystem development
Contributors
Treasury

Airdrop

Distribution:

Multi-season approach
Activity-based allocation
Points program
Community building

Revenue Sharing Model

Sequencer Fee Distribution

How it works:

L2 generates sequencer revenue
Revenue shared with builders
Developers earn from user activity
Sustainable economics

Developer Incentives

Builder benefits:

Earn from contract usage
Gas fee sharing
Referral programs
Growth alignment

User Benefits

Participant rewards:

Reduced fees indirectly
Ecosystem participation
Token rewards
DeFi opportunities

Superchain Position

OP Stack Membership

Ecosystem role:

Part of Optimism Superchain
Shared technology
Cross-chain messaging
Collective development

Interoperability

Cross-chain features:

Communication with other OP chains
Shared security model
Bridge infrastructure
Ecosystem connectivity

Differentiation

Standing out:

DeFi-native positioning
Revenue sharing unique
Yield focus
Builder alignment

DeFi Ecosystem

Native Protocols

Built on Mode:

DEXs and AMMs
Lending protocols
Yield aggregators
Derivatives

TVL Growth

Liquidity attraction:

Incentive programs
Native protocol development
Bridge liquidity
User migration

Yield Opportunities

DeFi activities:

Liquidity provision
Lending/borrowing
Staking
Farming programs

Competition and Positioning

vs. Other L2s

L2	Stack	Focus
Mode	OP Stack	DeFi
Base	OP Stack	Consumer
Arbitrum	Nitro	General
Optimism	OP Stack	Public goods

Mode Differentiation

Key advantages:

Revenue sharing
DeFi specialization
Builder alignment
Superchain membership

Points and Incentives

Points Program

Engagement mechanism:

Earn points for activity
Convert to tokens
Seasonal structure
Community participation

Incentive Alignment

Economic design:

Early user rewards
Builder incentives
Liquidity mining
Sustained engagement

Challenges and Risks

L2 Competition

Market dynamics:

Many L2 options
Developer attention split
Liquidity fragmentation
Differentiation difficulty

Superchain Dependency

Ecosystem risks:

OP Stack reliance
Collective decisions
Upgrade coordination
Technology dependency

Sustainability

Long-term questions:

Revenue vs. incentives
User retention
DeFi market cycles
Competition intensifying

Team and Backing

Leadership

Core team:

DeFi experience
Technical capability
Marketing execution
Ecosystem building

Investors

Funding support:

VC backing
Strategic investors
Ecosystem partners
Development capital

Recent Developments

Network Growth

Traction metrics:

TVL growth
Transaction volume
Active addresses
Protocol deployments

Ecosystem Expansion

Development:

New protocol launches
Partnership announcements
Feature updates
Community growth

Future Roadmap

Development priorities:

DeFi: More native protocols
Ecosystem: Builder onboarding
Interoperability: Superchain integration
Products: New features
Adoption: User growth

Conclusion

Mode Network carved out a niche as the DeFi-focused L2 within the Superchain, with revenue-sharing mechanisms that attempt to solve the builder alignment problem. The economic model where developers earn from their deployed contracts creates different incentives than most L2s.

The challenge is maintaining relevance in an increasingly crowded L2 market where larger players like Base and Arbitrum command most attention and liquidity. The Superchain membership provides infrastructure benefits but also means competing with sister chains.

For DeFi builders seeking an L2 with revenue-sharing and for users exploring yield opportunities across L2s, Mode offers differentiated economics—though the long-term viability depends on sustaining DeFi activity against formidable competition.

Technology Stack