We’re thrilled to collaborate with Mode, the first L2 platform to introduce a modernized vote escrow (ve) and gauge-based governance model. This innovative approach in incorporating ve and gauges into a rollup ecosystem brings a dynamic governance model that promotes incentive alignment, reduces coordination overhead, and stimulates network growth.
TLDR:
- 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 boosts voting power with each epoch;
- Stakers assign a portion of their voting power to gauges to direct rewards;
- Rewards are distributed to protocols in the network, not just liquidity pools;
- Stakers earn $OP rewards for participating in governance;
- Incentives are adjusted each season;
- Community members stake, vote, and claim rewards directly through the Mode Governance Hub.
Mode focuses on building infrastructure, assets, and applications to scale decentralized finance (DeFi) to a global audience. Powered by Optimism’s OP stack, Mode collaborates with Optimism to develop the Superchain. By leveraging the successes and challenges of DeFi governance history, Mode is paving the way for a new era in ve governance.
With a team of industry experts from Balancer, Aura, Aragon, and others, Mode has modernized ve and gauge-based governance for this unique scenario. This collaboration has led to breakthroughs that enhance governance with stronger incentive alignment, reduced coordination overhead, and ecosystem growth.
The innovative solution encourages governance participation by offering voters exponential voting power and rewards, without enforcing long-term lockups. veMODE and veBPT holders can allocate their voting power to gauges to direct reward distribution across network protocols. Incentives for both veMODE and protocols adapt to changing seasons, ensuring governance responsiveness to ecosystem and market dynamics.
Collaborating with Mode, we developed a custom veStaker with unique features:
- Users can stake two different token types in a single position:
- veMODE, acquired by staking MODE tokens;
- veBPT, acquired by staking MODE/ETH Balancer liquidity tokens.
This feature allows dynamic allocation of voting power among different stakeholder groups, introducing dual governance incentives and capabilities. It also broadens the stakeholder base for governance participation. Liquidity providers to the MODE/ETH pool earn fee revenue from trades and contribute to on-chain liquidity for the MODE token, playing a crucial role in the ecosystem and governance process.