Layer 2 network Mode has launched its native MODE token with a 550 million crypto airdrop on Optimism for early adopters.
The Mode Network is a modular decentralized finance (DeFi) Layer2 solution built on the Optimism Stack and debuts with a market capitalization of $73 million.
Mode Network Initiates Airdrop Season
During the initial stages of the airdrop, around 500 million of the MODE tokens will be distributed among early adopters. This figure represents 5.5% of the total token supply of 10 billion. Besides the 500 million MODE tokens allocated for early adopters, an additional 1,000,000 OP tokens worth $2.7 million will also be awarded to users via incentive campaigns. Airdrop 1, as it is being called, is based on Mode points that have been accruing since the “Mode Sunrise” event in January. Mode Points were calculated based on user activity across DeFi, NFTs, and other Layer2 networks. Mode Network founder highlighted the importance of incentives to bootstrap early communities, stating,
“Incentives are important to bootstrap early communities, and as an industry, we should continue to optimize them.”
He also accepted that while airdrops have recently attracted significant controversy, the Mode Network team will continue to reward users and developers. According to data sourced from DeFiLlama, the Mode Network has seen unprecedented growth in 2024. The protocol registered an increase from $6000 in total value locked (TVL) on Jan 1 to $448 million.
Token And Airdrop Details
The MODE token serves two purposes: acting as a governance mechanism and promoting ecological growth within the Mode Network. The token’s total supply has been limited to 10 billion, with an initial circulation of 1.3 billion tokens. 35% of MODE tokens are allocated towards crypto airdrops for users and developers, with 5.5% of this number released during the first quarter.
A further 19% of MODE tokens have been allocated to investors and early contributors. These tokens are subject to a 12-month lock-up, followed by a 24-month linear release. The foundation and treasury will hold 27% of the tokens, which will be used to fund ecosystem initiatives through governance mechanisms.
Token Plummets Following Airdrop
The airdrop has been met with little enthusiasm from the market. The MODE token registered a 60% drop in value immediately after launch, an indication that airdrops are losing their shine. The token started trading above the 14 cents mark but dropped almost 63% to just over 5 cents, according to data from CoinGecko. The token is currently trading around the $0.048 level.
The Mode Network is also working with Optimism to develop the Superchain. The Superchain integrates Celestia’s data availability solution to transform into a unique Layer3 network, Model Flare. This facilitates enhanced collaboration between decentralized applications and users by sharing contract revenue.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
