The Ethereum Layer 2 landscape witnessed the introduction of a new player with a market capitalization of $73 million.
Mode, a Layer 2 network powered by Optimism’s OP Stack, initiated the release of its native MODE token through an airdrop targeting early adopters.
During this initial phase, 500 million MODE tokens, constituting 5.5% of the total supply of 10 billion tokens, will be dispersed.
However, the market response to MODE has been lackluster, as the token experienced a 60% decline shortly after its launch, resulting in a $73 million market cap.
James Ross, the founder of the network, refrained from commenting on the price movement, emphasizing the team’s dedication to development efforts.
Alongside the 500 million MODE tokens designated for the community, 1,000,000 OP tokens valued at $2.7 million will be distributed to users through various incentive initiatives.
The first airdrop is based on Mode points accumulated by users since the “Mode Sunrise” event commenced in January, which were earned through activities across DeFi, NFTs, and other Layer-2 networks.
Regarding token distribution, 27% of the MODE supply is allocated to the foundation and treasury, 35% to users and additional airdrops, 19% to investors, and 19% to core contributors.
Ross emphasizes the importance of incentives in fostering early communities, stating the team’s commitment to rewarding users and developers despite recent controversies surrounding airdrops.
Mode has witnessed exponential growth in 2024, surging from $6,000 in total value locked (TVL) on Jan. 1 to $448 million today, boasting over 450,000 active wallets participating in the network, according to DefiLlama data.
Positioning itself as an experimental DeFi protocol developed using the OP Stack, the Mode network is a key player within the Superchain ecosystem, a collective of Optimism-based technologies striving to establish a network of interconnected blockchains through a unified framework.
The Mode network recently received a strategic grant of 2 million OP (approximately $4.5 million) from Optimism, solidifying its role as the Superchain DeFi Hub alongside prominent members such as Base, Worldcoin, and Fraxtal.
