Layer 2 network, Mode, sees exponential growth following the launch of its airdrop campaign.
Mode, the latest addition to Ethereum’s Layer 2 networks, experiences remarkable expansion following the introduction of incentives for early adopters.
A Boost in Adoption Through Airdrop Incentives
On January 31st, Mode revealed plans to distribute 550 million MODE tokens, equivalent to 5.5% of the forthcoming token supply, to early users as part of its inaugural airdrop campaign. This initiative aims to reward users for various actions, including bridging assets onto the network, engaging with Mode-native decentralized applications, referring others, participating in quests, and demonstrating prior activity within the Ethereum ecosystem’s networks and dApps.
The announcement swiftly sparked increased adoption of Mode, as enthusiasts raced to accumulate points qualifying them for the upcoming token distribution.
Details of the MODE Airdrop
The MODE airdrop will gradually distribute tokens to users, with 400 million MODE tokens becoming available in April. Additional allotments of 50 million MODE will unlock when the network’s total value locked (TVL) reaches $100 million and $200 million, respectively. Furthermore, a final tranche of 50 million MODE will be distributed among the top 20% most active participants in the campaign through a lottery mechanism.
Mode Sunrise | Mainnet & Airdrop 1 Now Live! 🟡
The Modular DeFi L2. 550 million MODE (5.5% of supply) available. Powered by Optimism.
Start now 👇https://t.co/PxyPkx0FYx pic.twitter.com/l801XZmWV5
— Mode 🟡 (@modenetwork) January 31, 2024
In addition to early Mode users, the campaign will allocate tokens to past users of 140 protocols within the Ethereum, Optimism, and Ethereum Layer 2 ecosystems. Tokens will be distributed to wallets that have interacted with various Layer 2 networks, holders of specific NFT collections, and users of numerous DeFi dApps.
The Mode team emphasizes its focus on rewarding contributors to the Mode, Optimism, and Ethereum ecosystems without subjecting tokens to lengthy lock-up periods.
Rapid Growth in Assets Bridged and DeFi Activity
Data from L2beat indicates that over $64 million worth of assets have already been bridged onto the Mode network.
Additionally, five native DeFi dApps on Mode have collectively attracted $24.4 million in deposits, according to DeFi Llama.
Notably, Ionic Protocol, a Mode-native money market protocol, has seen deposits totaling approximately $21 million, while the Kim decentralized exchange has garnered $3.3 million.
Mode operates on Optimism’s OP Stack, an open-source codebase for launching Ethereum Layer 2 networks. The project received a grant of 2 million OP ($6 million) from the Optimism Foundation to support its development.
Airdrop Season Continues to Drive Growth
Mode’s growth exemplifies the effectiveness of successful airdrop campaigns in incentivizing early user participation. Airdrops have become a favored method for token distribution, often avoiding regulatory scrutiny as tokens are not directly sold to retail users in exchange for assets.
Points campaigns have emerged as a popular mechanism for formalizing airdrop eligibility, providing confidence to early adopters that they will qualify for future token distributions. Recent successes include Manta, Blast, and EtherFi, which have experienced significant growth following their respective points campaigns and airdrops.
