Mode: Distribution of Network REV

Distribution of Network REV between stakeholders

About this Chart

Network REV (Real Economic Value) is the measure of user demand to transact on a blockchain. It consists of all transaction fees and out-of-protocol tips paid for transaction execution. In the case of Mode, there are no out-of-protocol tips, so all REV is generated by in-protocol transaction fees.

Developer Fee Sharing: Mode offers a Sequencer Fee Sharing program to redistribute REV to developers building on the network.

Ethereum: The L2 (Mode) pays transaction fees on the L1 (Ethereum) to post transaction data, purchase blobs, and post stateroots. These costs are passed back to the user transaction on the L2.

OP Collective: As part of its membership in the Optimism Superchain, Mode has a revenue share agreement with the Optimism Collective. Mode distributes the greater of 2.5% of total sequencer revenue (Network REV) or 15% of its net onchain sequencer revenue (Network REV less L1 Operator Payments).

Mode Foundation: All net income after considering the distributions to Ethereum L1, Developer Fee Sharing, and the OP Collective accrues to Mode Foundation.