Alpha Release for Partners - Details subject to change upon launch

Mode is launching veMODE and becoming the first L2 to implement a vote escrow model for the distribution of incentives to ecosystem apps.

veMODE is an upgrade to the current MODE staking module.

Key benefits:

Community directed incentives. Flexible distribution.

For Protocols

• Ability to directly influence flow of incentives by accumulating voting power
• Flexibility to use incentives strategically
• Better discoverability as voters consider gauge options each epoch

For Voters

• Claim OP rewards for voting
• Decide which protocols to direct incentives in weighted, gauge-style voting

Key innovations:

• Staking, not locking. Vote power increases with time staked.
• MODE and MODE/ETH liquidity receipt tokens can be used to vote, increasing the productivity of participating tokens.
• Flexibility and upgradability
  • Vote for protocols, not pools - enabling teams to strategically target growth.
  • Time bound seasons. Lessons learned from Season III will be considered and applied to upgrade Season IV, enabling continuous innovation.

Key Details:

• MODE and MODE/ETH 80/20 BPT will each direct separate allocations of incentives. Two separate, parallel gauge votes.
• Protocols should distribute rewards primarily via Merkl, using an MS with the same address on Mode and Optimism. Other methods approved on case-by-case basis, but OP incentives must target Mode users and be distributed/claimed on Optimism Mainnet without being sold/transformed.
• Six, two-week epochs, which will include gauge voting, distribution and OP claim.
  • Vote power and incentives available for distribution will increase each epoch. Unstaking forfeits accumulated vote power multiplier.
  • 3-6 day warm-up and cool-down periods upon staking/unstaking