The Ethereum Layer 2 network debuted at a $73 million market capitalization.
Mode, a Layer 2 network that leverages Optimism’s OP Stack, has launched its native MODE token with an airdrop for early adopters.
In this initial stage, 500 million MODE tokens will be distributed, accounting for 5.5% of the total 10 billion token supply.
MODE has been met with disinterest from the market, with the token dropping 60% shortly after its launch, showcasing a $73 million market capitalization.
The network’s founder, James Ross, declined to comment on the price action, telling The Defiant, “We are focused on building.”
In addition to the 500 million MODE tokens allocated for the community, 1,000,000 OP tokens worth $2.7 million will be awarded to users through various incentive campaigns.
Airdrop 1 is based on the Mode points which users have been accruing since the “Mode Sunrise” event that kicked off in January. These points were based on users’ activities across DeFi, NFTs, and other Layer-2 networks.
The team has allocated 27% of the MODE supply to the foundation and treasury, 35% to users and other airdrops, 19% to investors, and 19% to core contributors.
According to Ross, “Incentives are important to bootstrap early communities, and as an industry, we should continue to optimize them.” He told The Defiant that even though airdrops have been the source of controversy lately, his team will continue to reward users and developers to grow the ecosystem.
Parabolic Growth
Mode has seen parabolic growth in 2024. According to DefiLlama, it spiked from $6,000 in total value locked (TVL) on Jan. 1 to $448 million today, and the project claims more than 450,000 active wallets are participating in the network.
The Superchain DeFi Hub
The Mode network touts itself as an experimental DeFi protocol developed using the OP Stack. It’s a member of the Superchain ecosystem, which refers to an Optimism-based technology stack that aims to create a network of blockchains interoperating through a common framework.
Recently, the Mode network received a strategic 2 million OP grant (roughly $4.5 million today) from Optimism to become the Superchain DeFi Hub.
Superchain members also include Base, Worldcoin, and Fraxtal, among others.
Read More: thedefiant.io