Today we are announcing the distribution amounts of Month One of our DevDrop.

Since our announcement 6 weeks ago, we have worked with our research team, ecosystem projects, and our investors to devise the best program to achieve Mode’s growth goals and to simultaneously reward developers and users for driving impact onchain. We have set aside an initial 5% of the total token supply for this initiative. However, there will be future dev-focused initiatives with additional supply allocated.We are excited to unveil Month One rewards (for March 2024). These rewards will be distributed to teams over the next 7 days.

We will be allocating 0.217% of the Total Token Supply for Month One.

We will be allocating 0.284% of the Total Token Supply for Month Two.

Important Warnings for DevDrop

• Projects who do not distribute their DevDrop to users will have their DevDrop canceled and will be removed from any future distributions

• Projects who do not distribute their DevDrop in time, will also be removed from the program

• Projects suspected of distributing the rewards to themselves or through proxy wallets will be investigated, and can be removed from the program

• Projects who declare themselves native projects for DevDrop must follow through with that promise or be removed from the program

• Projects who rug, scam, or act in dishonest ways that damage the Mode ecosystem will be removed from the program

• Any attempts to create liquidity proxies for Mode DevDrop or Airdrop (such as ERC20) will result in removal from the program

The Mode DevDrop Model

Back in January we created our initial Airdrop 1 model. The model itself has proven to be very effective in delivering the growth metrics desired for Mode.

For the DevDrop we have expanded our scope to take into account more metrics, whilst further rewarding areas we are looking to grow, such as Mode native projects or onchain liquidity. All rewards are based on impact through onchain metrics, plus potential multipliers.

The DevDrop model is a monthly competition between projects deployed to Mode. This means that for new projects deploying, there is a huge opportunity to unlock the DevDrop and take part in the current month, as well as all subsequent months.

The onchain criteria to determine the DevDrop are as follows:

TVL

It’s important that we keep incentivising and attracting new capital into the ecosystem. This brings new projects, users and improves the entire user experience. More TVL means our ecosystem gains more momentum.

TX Fees

After both the Span Batches and Blobs updates, transaction fees have become significantly lower, but they are still an important part of the network. dApps that contribute meaningfully will be noticed for DevDrop.

Volume

Alongside TX Fees, we also want to reward exchanges or other venues like Games that increase the volume on the network. Higher volumes leads to better liquidity efficiency and opportunities for other market participants.

Users

On top of the other metrics, we will look at user figures. dApps that can onboard millions of people to Mode, but maybe don’t have a focus on TVL are still extremely valuable to Mode.

The potential multipliers projects can receive are as follows:

Native projects and features (biggest multiplier)

The long term success of an ecosystem is reliant on native projects making Mode home, being dApps or L3s. This means projects launch their native token on Mode. In the future, we will have more Mode native products that existing and future projects will be able to incorporate in their dApps. Choosing Mode as your home is a big decision and we are grateful to the projects and founders who have put their full trust in the ecosystem we are building.

Liquidity imbalances (second biggest multiplier)

As more users and capital flow into the ecosystem, capital congregates in certain dApps with certain risk profiles. Depending on market conditions, users have different preferences and that can create liquidity imbalances across the ecosystem. Mitigating these imbalances through incentive mechanisms is crucial to creating a great user experience.

Superchain aligned

Projects who either build across the Superchain or who have a Superchain focus will also receive a multiplier, as the wider success of the Superchain positively impacts Mode. More Superchain builders means a thriving Ethereum-aligned ecosystem.

Time since deployment

As time elapses the dApps that took a chance to deploy on the nascent Mode Network will receive a small multiplier. The earlier a project deploys the higher that multiplier will be over time and dApps deploying now will be at a small advantage in terms of incentives compared to dApps deploying in 12 months.

March 2024 DevDrop Distribution

For the first few distributions, including March, the Mode team and advisors will deliberate on the distributions based on the initial model, multipliers and our own best judgements.

We will make adjustments to this model as necessary to make sure we achieve the monthly results and outcomes we expect.

Once we are happy with the model we will look to gradually automate this process each month and involve governance participants.

Two NFTs, Not Points

Instead of points or tokens, we will initially distribute two NFTs. Before the Mode TGE we have decided this is the preferred route and gives us the most flexibility, without adding points on points on points.

Projects will receive a certain quantity of NFTs based on their DevDrop score.Once projects receive these NFTs, we will work with the teams directly to help them create ways to distribute these to their users and community. At the end of April, the majority of NFTs should be in the hands of users of Mode Network.

The two NFTs are ‘Mode Photons’ and ‘Mode Orbs’. There are 10x the quantity of Photons to Orbs.

Mode Photons are the wider incentive mechanism. Users can collect multiple Mode Photons and dApps will have more flexibility with distributions of Mode Photons.

Mode Orbs are limited in their supply. They are a scarce resource and have greater weight. At one tenth of the supply of Mode Photons, teams should be much more thoughtful on the distribution of these NFTs. We will work with teams on potential distribution methods.

All of these NFTs will have a future utility.

The Initial Distribution

Please find the initial distribution below. Including the scores for Month One. NFTs will be distributed in the next 7 days to teams directly.

Month Two rewards will be announced in early May.