# Overview of Mode Network

By [hatala](https://paragraph.com/@hatala) · 2024-10-14

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Mode Network is an **Ethereum Layer 2 (L2) blockchain** designed to **incentivize on-chain collaboration**. Its goal is to foster a thriving ecosystem of top-tier applications by offering **direct rewards to developers** based on their contributions.

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### **Key Features of Mode Network**

1.  **Guaranteed Contract-Based Revenue**:
    
    *   Developers of smart contracts can **earn fees** from the contracts they deploy on the network.
        
2.  **Referral Revenue**:
    
    *   Users, developers, or protocols that bring new participants to the network are rewarded with **a share of transaction fees**.
        
3.  **Development Tools and Dashboards**:
    
    *   Developers gain access to **web3 tools and project metrics** to help scale their communities and enhance integration efforts.
        

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### **Main Highlights of Mode Network**

1.  **Revenue Sharing Incentives**:
    
    *   Mode operates with **built-in revenue-sharing mechanisms** at the protocol layer. This encourages applications and users to work together, with **sequencer rewards** directly distributed to participants.
        
2.  **Low Transaction Fees**:
    
    *   Mode has implemented **Optimism’s Bedrock upgrade**, reducing fees by over 95% compared to Ethereum.
        
3.  **High Throughput**:
    
    *   Mode Network can handle **up to 2,000 transactions per second (TPS)**, with **transaction fees up to 10x cheaper** than Ethereum.
        

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### **Comparison: Mode Network vs. OP Stack vs. Ethereum**

While Ethereum has improved scalability through its shift to **Proof of Stake (PoS)**, Layer 2 solutions like **Optimism and Mode Network** are still needed to further expand blockchain performance.

*   **Mode Network leverages OP Stack technology**, inheriting Optimism’s benefits while adding **revenue-sharing features** through sequencer rewards.
    

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### **Mode Network Ecosystem**

Despite being a relatively new Layer 2 project, Mode has already established a diverse ecosystem with **nearly 70 projects** spanning various sectors:

*   **DeFi** (with over 41 projects, accounting for 50% of the ecosystem)
    
*   **Gaming & NFT**
    
*   **Wallets, Stablecoins, SocialFi, and Bridges**
    

Mode’s focus on **DeFi** highlights its strength in financial applications, supporting a wide range of dApps and use cases.

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### **Conclusion**

Mode Network offers **a scalable, low-cost L2 solution** with innovative revenue-sharing incentives. By combining **Optimism’s technology** with a unique focus on rewarding developers and participants, Mode is building a collaborative ecosystem across multiple sectors, with DeFi leading the way.

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*Originally published on [hatala](https://paragraph.com/@hatala/overview-of-mode-network)*