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🎯 Mode Points Design

Mode Incentive Design

Introduction

Mode Points serve as a metric to acknowledge and reward early participants in the Mode ecosystem. These points encapsulate a range of activities, including assets on Mode, interacting with applications within the ecosystem, historical engagement across other blockchain networks, and more.

The points formula can be extracted into three terms:

$$P_u = P_{R} + P_{E} + P_{V}$$

represents the Mode Reward Points user $$u$$ earns during the Mode Sunrise period. There are three ways users can earn points:

  • Referral Points ($$P_{R}$$)
  • Ecosystem Points ($$P_{E}$$)
  • Veteran Points ($$P_{V}$$).

In the following section, we explain each part of formula.

Referral Points

Referral Points incentivizes cooperative onboarding activities. These points are calculated by the formula:

$$P_{R} = ;m_{RP}\cdot \alpha RP_{u,t}$$

where $$RP_{u,t}$$ is the total referral points earned by user $$u$$ at time $$t$$, multiplied by a share multiplier $$\alpha$$ and referral multiplier $$m_{RP}$$.

To obtain the total referral points earned by user $$u$$, we sum over eligible points $$\tilde{P_{r}}$$ generated by $$r$$ wallets that have activated user $$u$$'s referral code.

$$RP_{u,t} = \Sigma_{r \in R_u} \tilde{P_{r}}$$

Eligible points $$\tilde{P_{r}}$$ are points generated through on-chain wallet activities and do not include referral points so to prevent second-order referral effects.

The share multiplier $$\alpha$$ and referral multiplier $$w_{RP}$$ are optimized throughout the program.

Ecosystem Points

Ecosystem points incentivizes asset onboarding to Mode, along with user activity across various ecosystem protocols at launch. It is calculated by:

$$P_{E} = \int_{0}^{T} (m_{AoM} \cdot AoM_t + m_{TVL} \cdot TVL_t + m_{Fees} \cdot Fees_t) ; dt$$

where $$AoM_t$$ is the amount of total Assets on Mode, $$TVL_t$$ is Total Value Locked in ecosystem dapps, and $$Fees_t$$ is sequencer fees spent, aggregated across time.

The multipliers $$m_{AoM}$$, $$m_{TVL}$$, and $$m_{Fees}$$ will be optimized throughout the program to promote sustainable growth of the Mode ecosystem.

Veteran Points

Veteran Points $$P_{V}$$ provides additional points to users who have demonstrated notable activity across Ethereum, Optimism, or Base in the past, inviting active blockchain participants to join the Mode network.