# Overview of Mode Network

**Published by:** [hatala](https://paragraph.com/@hatala/)
**Published on:** 2024-10-14
**URL:** https://paragraph.com/@hatala/overview-of-mode-network

## Content

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.Key Features of Mode NetworkGuaranteed Contract-Based Revenue:Developers of smart contracts can earn fees from the contracts they deploy on the network.Referral Revenue:Users, developers, or protocols that bring new participants to the network are rewarded with a share of transaction fees.Development Tools and Dashboards:Developers gain access to web3 tools and project metrics to help scale their communities and enhance integration efforts.Main Highlights of Mode NetworkRevenue 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.Low Transaction Fees:Mode has implemented Optimism’s Bedrock upgrade, reducing fees by over 95% compared to Ethereum.High Throughput:Mode Network can handle up to 2,000 transactions per second (TPS), with transaction fees up to 10x cheaper than Ethereum.Comparison: Mode Network vs. OP Stack vs. EthereumWhile 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.Mode Network EcosystemDespite 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 & NFTWallets, Stablecoins, SocialFi, and BridgesMode’s focus on DeFi highlights its strength in financial applications, supporting a wide range of dApps and use cases.ConclusionMode 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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