Introduction

Mode Network is a new blockchain platform that focuses on solving key problems in the decentralized finance (DeFi) space—mainly high transaction fees, limited scalability, and weak developer incentives. Built as a Layer 2 (L2) solution on Ethereum, Mode aims to offer faster, cheaper, and more scalable interactions for both users and developers. It does this using the OP Stack, the same technology that powers Optimism, and is also part of the broader Optimism Superchain initiative.

Mode Network isn’t just another L2. It brings a new model that rewards developers for building useful apps, and gives users a better experience through low-cost transactions and smart financial tools. Its long-term goal is to support a fully on-chain economy powered by modular infrastructure and artificial intelligence.

What is Mode Network

Mode Network is a Layer 2 (L2) blockchain built on Ethereum that aims to improve how decentralized applications (dApps) and users interact with DeFi. It uses the OP Stack—an open-source, modular framework developed by Optimism—to offer faster transactions, lower fees, and better scalability compared to Ethereum’s mainnet.

Unlike general-purpose L2 chains, Mode is designed specifically to support the on-chain economy. This means it focuses on making DeFi easier to access, more cost-effective, and more rewarding for both developers and users. One of Mode’s key innovations is its growth-focused ecosystem, where developers are financially incentivized through a mechanism called Growth Rewards. This model helps attract quality apps and encourages long-term engagement.

Mode is also part of the Optimism Superchain, a group of interoperable L2 networks that share core infrastructure. This allows Mode to benefit from shared security, faster development, and easier integration with other chains using the same stack.

In short, Mode Network is an Ethereum-compatible L2 platform focused on scaling DeFi through efficient infrastructure, developer rewards, and integration with Optimism’s broader ecosystem.

History of Mode Network, Origins, and Key Persons

Mode Network was established in 2023 by James Ross in the United Kingdom. The project was conceived to address scalability challenges in decentralized finance (DeFi) by leveraging Ethereum’s Layer 2 capabilities. By utilizing the OP Stack, Mode aims to provide a modular and efficient infrastructure for DeFi applications.

The Mode Network mainnet officially launched on January 31, 2024. This launch marked the transition from development to a fully operational network, enabling users and developers to interact with the platform’s features. Following the mainnet launch, Mode initiated a points-based airdrop campaign in February 2024 to incentivize early adopters and developers.

In early 2024, Mode Network received a $2 million grant in OP tokens from the Optimism Foundation, supporting its growth within the Optimism Superchain ecosystem . Additionally, Mode established partnerships with projects such as LayerZero, Redstone, Ether.fi, and Renzo to enhance its ecosystem and expand its DeFi offerings.

Mode Network has implemented various programs to engage its community and promote ecosystem growth. The Mode Sunrise initiative, launched in January 2024, aimed to reward early participants and developers. Subsequent events like Mode Madness in March 2024 further encouraged community involvement through activities and competitions.

How Does Mode Network Work?

Mode Network operates as a Layer 2 blockchain built on top of Ethereum. It uses the OP Stack, a modular framework developed by Optimism, to handle transactions more efficiently than Ethereum’s mainnet. This means that instead of processing every transaction on Ethereum directly (which is costly and slow during high traffic), Mode processes them off-chain and posts the results back to Ethereum, ensuring security while reducing gas fees and increasing speed.

Core Infrastructure

• OP Stack: This is the core technology behind Mode. It standardizes how Layer 2 chains like Mode operate and ensures they are interoperable with other chains in the Optimism Superchain.
• Sequencers: Mode uses a centralized sequencer to bundle and order transactions. These are then submitted to Ethereum in batches, helping reduce fees and maintain speed.
• Settlement Layer: Ethereum remains the final source of truth for all transaction data, ensuring security and data availability.

Developer Incentives

Mode includes a Growth Rewards system. Developers earn rewards based on how much usage their dApps generate. The more active users and transaction volume a dApp has, the more rewards the developer gets. This mechanism is meant to attract serious builders who create value for the ecosystem.

User Experience

For users, Mode provides:

• Low-cost transactions, thanks to batch processing and off-chain execution.
• Fast confirmation times, making DeFi and other applications more responsive.
• Native bridging tools to move assets between Ethereum and Mode quickly.

Key Features of Mode Network

Mode Network offers several features that distinguish it from other Layer 2 solutions. These features are designed to support scalability, lower transaction costs, and grow the ecosystem through clear incentive mechanisms.

Built on the OP Stack

Mode uses the OP Stack, which is a shared, open-source framework built by the Optimism team. This makes Mode compatible with the Optimism Superchain, allowing interoperability with other OP Stack chains. It also means that Mode benefits from shared updates, security improvements, and tooling.

Growth Rewards for Developers

One of Mode’s core innovations is its Growth Rewards program. Developers who launch apps on Mode receive rewards based on real usage—such as total value locked (TVL), transaction volume, and active users. This shifts the focus from speculative airdrops to sustained, performance-based incentives that encourage long-term development.

User Incentive Programs

Mode also rewards users who interact with the network. Points are distributed for actions like bridging assets, using dApps, and holding tokens. These points often contribute to future airdrops or token distributions, making early participation more valuable.

Fast and Low-Cost Transactions

As a Layer 2 solution, Mode enables fast transaction speeds and reduced gas fees compared to Ethereum mainnet. This makes it ideal for DeFi, where frequent and small transactions are common.

AI Integration Potential (AiFi)

Mode positions itself as a base layer for AI-powered DeFi applications (sometimes referred to as AiFi). While still an early concept, the idea is to support smart contracts and dApps that can use AI for automated decision-making, risk assessment, and dynamic financial strategies.

Part of the Optimism Superchain

Being part of the Superchain gives Mode access to shared governance, ecosystem grants, and network effects. This strengthens its long-term viability and makes it easier for users and developers to move between chains.

Mode AI Terminal

Mode Network is building infrastructure to support AI-powered DeFi applications, a concept referred to as AiFi. A major component of this vision is the Mode AI Terminal, a platform that allows developers and users to create, deploy, and interact with on-chain AI agents.

The Mode AI Terminal is designed to:

• Enable users to train and deploy AI agents that can execute on-chain financial operations.
• Provide a developer interface to build autonomous smart contract agents.
• Serve as a launchpad for AI-native dApps, allowing programmable strategies for yield generation, treasury management, and trading.

This tool makes Mode one of the first L2s with built-in infrastructure for AI-native finance, positioning it at the forefront of combining machine intelligence with decentralized applications.

AI Agents

Mode AI Agents are autonomous, on-chain programs designed to perform specific financial tasks without human intervention. These agents can manage portfolios, execute trades, or optimize yield strategies based on predefined parameters and real-time data.

Notable AI Agents within the Mode ecosystem include:

• Arma: Focuses on earning yield on USDC across various Mode applications.
• Brian: Allows users to execute transactions using natural language commands, similar to the AI Terminal.
• Sturdy v2: An AI-powered yield aggregator that optimizes returns across DeFi protocols.

These agents operate continuously, making real-time decisions to maximize efficiency and returns, embodying the concept of “DeFi on autopilot.”

Mode’s Main Tools

Bridge

The Mode Bridge enables users to transfer assets between Ethereum Mainnet and Mode Network. This bridge supports tokens such as ETH, USDC, USDT, and WBTC. Depositing assets from Ethereum to Mode is straightforward; however, withdrawals from Mode to Ethereum involve a 7-day challenge period inherent to optimistic rollups.

RPC

Mode Network provides reliable RPC endpoints, allowing developers to interact with the blockchain without running their own nodes. These endpoints support various operations, including sending transactions, deploying smart contracts, and querying blockchain data.

Multisig Wallets

For enhanced security, Mode supports multisignature (multisig) wallets, which require multiple approvals to execute transactions. Implementations like Safe (formerly Gnosis Safe) and Brahma Console are available on Mode, providing users with secure asset management solutions.

Data Indexers

To facilitate efficient data retrieval, Mode integrates with indexing protocols such as The Graph, Covalent, and Indexing Co. These services allow developers to query blockchain data through APIs, enabling the creation of responsive and data-rich decentralized applications.

Oracles

Accurate and timely data feeds are crucial for decentralized applications. Mode Network incorporates oracles like API3, Pyth, RedStone, and Supra to provide real-time price feeds and other external data. These oracles support various data delivery methods, ensuring flexibility and reliability for developers.

Is MODE a Good Investment?

Evaluating whether MODE is a good investment depends on several objective factors including market performance, token supply dynamics, ecosystem growth, and associated risks.

MODE has experienced price volatility, particularly following its airdrop and mainnet launch. Like many tokens in new ecosystems, the initial interest led to a price peak followed by a decline. This is typical for new tokens but signals that MODE is currently in a price discovery phase.

MODE may be a good investment for those with a long-term outlook and interest in supporting early-stage Layer 2 ecosystems, especially ones focused on DeFi and AI. However, it carries typical risks associated with new crypto projects—volatility, inflation, and execution risk. Investors should approach with caution and consider diversification.

How Can You Own MODE?

Owning MODE, the native token of Mode Network, can be done through several straightforward methods. These include earning through participation, buying on exchanges, and receiving it through ecosystem incentives.

MODE is listed on multiple centralized and decentralized exchanges. As of now, you can buy MODE on gate.io. You will need a compatible wallet (like MetaMask) and either USDT, ETH, or other trading pairs depending on the exchange. After purchase, you can transfer MODE to a self-custodial wallet for safekeeping.

Tokenomics of MODE

MODE is the native token of Mode Network, designed to incentivize ecosystem growth, facilitate governance, and support on-chain financial activities. The tokenomics structure aims to balance rewards for contributors while ensuring sustainable network development.

Total Supply and Distribution

• Total Supply: 10,000,000,000 MODE tokens (fixed supply).

Allocation

User and Developer Airdrops: 35%

Investors: 19%

Core Contributors: 19%

Foundation and Onchain Treasury: 27%

Utility of MODE

MODE tokens serve multiple functions within the Mode Network:

• Governance: Token holders can participate in decision-making processes affecting the network’s future.
• Incentives: Rewards for users and developers contributing to the ecosystem’s growth.
• Grants: Funding for DeFi integrations and community-driven projects.

Circulating Supply and Inflation

Initial Circulating Supply: Approximately 1.3 billion MODE tokens at launch. \

The token supply is fixed; however, the release of vested tokens over time effectively increases the circulating supply. This gradual release is designed to align with ecosystem growth and demand.

Roadmap of Mode Network

Mode Network’s roadmap for 2025 focuses on advancing its AI-powered decentralized finance (DeFi) ecosystem, known as AiFi. The plan includes developing infrastructure to support autonomous AI agents in financial operations, enhancing user accessibility, and fostering innovation within the ecosystem.

Key Development Areas for 2025

AI Vault Layer: Mode plans to introduce an AI Vault Layer aimed at enabling AI-driven treasury management. This feature is expected to allow AI agents to autonomously manage funds, optimize yields, and execute financial strategies on-chain.

Mobile Applications: To increase accessibility, Mode intends to launch mobile applications for Android and iOS platforms. These apps will provide users with tools to interact with the AiFi ecosystem, including managing AI agents and participating in DeFi activities.

Fundraising Platform for AI Projects: Mode is developing a platform to facilitate fundraising for AI-focused crypto projects. This initiative aims to support developers by connecting them with potential investors within the Mode ecosystem.

AI-to-AI Financial Services: The roadmap includes creating an environment where AI agents can autonomously interact and perform complex financial tasks. This development aims to establish a scalable ecosystem where AI agents handle various financial operations without human intervention.

Integration with Bittensor “Synth” Subnet: Mode plans to integrate with Bittensor’s “Synth” subnet to enhance AI financial modeling capabilities. This integration is expected to provide critical infrastructure for AI agents to perform advanced financial analyses.

To encourage development within its ecosystem, Mode has launched an AiFi accelerator program offering up to $10 million in seed funding. This program supports projects focusing on AI-powered treasury management, wallets, yield automation, and governance.

Conclusion

Mode Network is a Layer 2 blockchain built on Ethereum using the OP Stack, designed to improve scalability and usability for decentralized finance. It offers lower transaction costs, faster processing, and developer-focused incentives that aim to drive real usage rather than speculation.

The project has a clear strategy: reward developers through its Growth Rewards system, attract users with low fees and incentives, and support innovation through AI-focused financial applications. Its integration into the Optimism Superchain strengthens its technical foundation and long-term interoperability with other L2 chains.

MODE, the network’s native token, plays a central role in governance, rewards, and funding. Its tokenomics are structured to support network growth, though investors should be aware of risks like inflation and market volatility. The roadmap shows a clear push toward AI integration, mobile accessibility, and developer support.

Overall, Mode Network is positioning itself as a purpose-built platform for the future of on-chain finance. Its success will depend on continued developer adoption, user engagement, and execution of its roadmap.