Mode

What is Mode?

Mode is an Ethereum Layer‑2 (L2) solution built to enhance the decentralized finance (DeFi) ecosystem, particularly within Optimism’s Superchain. Designed to scale throughput and reduce gas fees, Mode uses optimistic rollup technology and integrates directly into the Optimism Superchain for shared security and interoperability :contentReference[oaicite:3]{index=3}.

Key Features

1. EVM Compatibility: Developers can deploy Ethereum-compatible smart contracts seamlessly on Mode without code rewrites :contentReference[oaicite:4]{index=4}.
2. Sequencer Fee Sharing: A portion of sequencer fees is shared with registered app developers via a smart contract. Mode commits 2.5% of total sequencer revenue—or 15% of net revenue after L1 payments—to the Optimism Collective, with the remainder accruing to its Foundation :contentReference[oaicite:5]{index=5}.
3. Developer Support & Growth Rewards: Mode offers grants, airdrops, referral rewards, and support—you earn revenue as your app scales on network usage :contentReference[oaicite:6]{index=6}.

How Mode Works

Mode processes transactions through an optimistic rollup sequencer that batches activity and submits it to Ethereum, reducing gas costs and increasing speed. Its monetization structure splits fees between the Optimism Collective, builder incentives, and network revenues :contentReference[oaicite:7]{index=7}.

As part of the Superchain, Mode shares sequencers and plans to enable native cross-rollup messaging, ensuring compatibility with other OP Stack chains like Base, Zora, and Public Goods Network for cohesive asset flow :contentReference[oaicite:8]{index=8}.

Mode is also exploring AI-integrated DeFi ("AiFi") and will introduce features like contract-secured revenue, referral bonuses, developer dashboards, and on-chain incentives to drive growth :contentReference[oaicite:9]{index=9}.

Why It Matters for Accounting & Reporting

For accounting teams integrating Mode with Cryptoworth’s accounting platform, Mode delivers:

• **Clear, timestamped transaction data**—each L2 batch retained with on-chain proofs and fee breakdowns.
• **Developer revenue flows**—tracking of sequencer fee shares, grants, and referral rewards becomes part of financial statements.
• **Cross-chain traceability**—integrated via Superchain, on-chain IBC-like transfers facilitate reconciliations.

Through this integration, teams can automatically map Mode L2 activity into journal entries, calculate cost basis and weighted average cost, and generate audit-ready statements without manual exports or reconciliation.

Frequently Asked Questions

1. Does Cryptoworth support sequencer fee income from Mode?

Yes. Cryptoworth ingests Mode data—including sequencer fee shares distributed to developers. This allows accounting teams to map revenue directly into accounting ledgers and track developer-based income flows alongside on-chain activity.

2. How can I reconcile cross-rollup transactions via Optimism Superchain?

Mode's shared sequencer and planned cross-rollup messaging create standardized metadata. Cryptoworth uses these to automatically tag incoming/outgoing transfers and reconcile inter-chain asset movements.

3. Can we calculate cost basis and revenue from Mode grants or airdrops?

Absolutely. Cryptoworth logs grants, referral rewards, and sequencer fee distributions—complete with timestamps and token valuation—to calculate both cost basis and income. For an optimized process, try our Crypto Cost-Basis Calculator.