Mode Introduces Modernized Vote Escrow and Gauge-Based Governance Model
In a groundbreaking move, Mode, the first L2 to implement a modernized vote escrow (ve) and gauge-based governance model, is revolutionizing the rollup ecosystem. This innovative approach aims to foster incentive alignment, reduce coordination overhead, and drive network growth.
Key Highlights:
– No long-term locking requirement, token holders can stake or unstake at any time with warm-up and cool-down periods
– veStaker supports multiple tokens: MODE and BPT (80/20 MODE/WETH)
– Staking tokens exponentially increases voting power with each epoch
– Stakers allocate a percentage of their voting power to gauges to direct rewards
– Rewards go to protocols in the network, rather than liquidity pools
– Stakers receive $OP rewards for participating in governance
– Incentives change with each season
– Community members stake, vote, and claim rewards directly in the Mode Governance Hub
Mode, as an AIFi-focused L2, is dedicated to scaling decentralized finance (DeFi) to billions of users globally. Powered by Optimism’s OP stack, Mode is collaborating with Optimism to build the Superchain. By leveraging the successes and lessons learned in DeFi governance, Mode is paving the way for a new chapter in ve governance.
The collaboration with industry leaders from Balancer, Aura, Aragon, and others has led to breakthroughs in governance that promote deeper incentive alignment, less coordination overhead, and ecosystem growth.
The novel governance solution by Mode includes a custom veStaker with unique features such as the ability to stake two different token types in a single position: veMODE and veBPT. This feature allows for dynamic voting power allocation across different stakeholder groups, enhancing governance participation.
With a focus on adaptability and customization, Mode chose to build on Aragon OSx for their governance contracts. This next-generation modular DAO framework provides a solid foundation for building a unique implementation of ve governance.
The gauge-based governance system implemented by Mode empowers token holders to determine the distribution of rewards amongst protocols on the network. This strategic approach uses incentives to drive network growth and reduce coordination overhead.
Overall, Mode’s governance system, deployed and governed by an Aragon OSx DAO, is designed for continuous improvement and adaptability. The community plays a crucial role in shaping the evolution of Mode’s governance model, ensuring a responsive and dynamic approach to governance.
As Mode continues to iterate and adjust incentives for each season, the community will have a dedicated Governance Hub to participate in governance activities. This consolidated UI provides a seamless and intuitive experience for users, enhancing engagement and participation in governance.
With a focus on modularizing ve contracts, Mode aims to make it easier for projects to customize ve models to meet the specific needs of their ecosystems and communities. This innovative approach to governance sets a new standard for decentralized governance in the DeFi space.
For more information on implementing a custom ve model for your project, reach out to Mode for further details.
