# 🎯Mode Points Design

Mode points calculations

## 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.

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