Optimism (OP/USDT), the token powering the layer-2 Ethereum scaling solution Optimism, shed 65.6% from its listing price of $4.57 shortly after its highly-anticipated airdrop.
What is Optimistic Rollup?
Optimism Token Project is a layer 2 scaling solution that scales both transaction throughput and computation on Ethereum. The backbone of our implementation is the Optimistic Virtual Machine (OVM), which is fully compatible with the EVM.
Optimistic Rollup is the first layer 2 scaling solution that enables:
- Usability: low latency transactions for the speed of a Web 2.0 experience, and smart contracts at a fraction of the cost.
- Familiar workflows: developers preserve the Ethereum developer experience — the same smart contracts, APIs, and dev tooling. Migrate existing contracts without breaking them.
- Money Lego: seamless interoperability between dApps and smart contracts.
The Collective DAO of Optimism Token
According to Optimism Token Project, the collective was founded on the premise that public goods can be profitable, and the DAO was designed such that “positive impact to the collective should be rewarded with profit to the individual.”
The Optimistic Collective puts a twist on the familiar DAO playbook of allowing token holders to vote on changes to the community by dividing itself into two “co-equal chambers.”
The Token House, which will include all OP token holders, will determine protocol incentives and vote on protocol upgrades. The Citizens’ House, on the other hand, will be made up of “citizens” who hold a non-transferable, or “soulbound,” NFT and are responsible for funding public goods.
The first group of citizens includes early Optimism contributors, but the rollup says that over time “the mechanism for distributing Citizenships will be determined by the Foundation with input from the Token House.”
Similar to other teams that have worked to progressively decentralize, Optimism has also formed a centralized foundation to “serve as a steward of the collective” and bootstrap the ecosystem (though it will eventually dissolve, Optimism says).
The total supply of OP will be 4,294,967,296 tokens, which are distributed to the following categories.
- 20% will be used for retroactive public goods funding
- 25%will be reserved as ecosystem funds, including governance, partner, seed, and unallocated funds.
- 19% will be airdropped to eligible members.
- 17% and 19% will be given to investors and core contributors.
Investors and core contributors are subject to more extended lockup periods. Most of their tokens will be locked for at least two years, while community-held coins can be sold in the secondary market within the first year.
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