šŸŽÆMode Points Design

Mode points calculations

Mode Incentive Design


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.

Pu=mRPā‹…Ī±RPu,t+āˆ«0T(mAoMā‹…AoMt+mTVLā‹…TVLt+mFeesā‹…Feest)ā€…ā€Šdt+PV\begin{align*} P_u = m_{RP}\cdot \alpha RP_{u,t} + \int_{0}^{T} (m_{AoM} \cdot AoM_t + m_{TVL} \cdot TVL_t + m_{Fees} \cdot Fees_t) \; dt + P_{V} \end{align*}

The points formula can be extracted into three terms:

Pu=PR+PE+PVP_u = P_{R} + P_{E} + P_{V}

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

  • Referral Points (PRP_{R})

  • Ecosystem Points (PEP_{E})

  • Veteran Points (PVP_{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:

PR=ā€…ā€ŠmRPā‹…Ī±RPu,tP_{R} = \;m_{RP}\cdot \alpha RP_{u,t}

where RPu,tRP_{u,t} is the total referral points earned by user uu at time tt, multiplied by a share multiplier Ī±\alpha and referral multiplier mRPm_{RP}.

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

RPu,t=Ī£rāˆˆRuPr~RP_{u,t} = \Sigma_{r \in R_u} \tilde{P_{r}}

Eligible points Pr~\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 Ī±\alpha and referral multiplier wRPw_{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:

PE=āˆ«0T(mAoMā‹…AoMt+mTVLā‹…TVLt+mFeesā‹…Feest)ā€…ā€ŠdtP_{E} = \int_{0}^{T} (m_{AoM} \cdot AoM_t + m_{TVL} \cdot TVL_t + m_{Fees} \cdot Fees_t) \; dt

where AoMtAoM_t is the amount of total Assets on Mode, TVLtTVL_t is Total Value Locked in ecosystem dapps, and FeestFees_t is sequencer fees spent, aggregated across time.

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

Veteran Points

Veteran Points PVP_{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.

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