Optimism Neighborhood Approves Proposal to Buyback OP Tokens

The governance backing the Optimism blockchain has authorized a proposal to allocate 50% of all Superchain income to purchase again the community’s token over the following 12 months, beginning in February.

The proposal was initially submitted by the Optimism Basis on Jan. 8 as a part of a push to increase the utility of the Optimism (OP) token and align it with the success of the Superchain, a community of unified blockchains. 

The voting interval ended on Thursday, with the Optimism governance neighborhood passing the proposal by 33.27% in favor, 3.23% towards, and three.95% abstaining.

Up till the vote, 100% of Superchain income was allotted to a treasury overseen by the Optimism governance neighborhood.

Optimism’s Superchain is a community of layer-2 (L2) chains constructed on the challenge’s open-source OP stack, together with Sony’s Soneium, Unichain, Ink, and Coinbase’s Base. It generates revenue in Ether (ETH) via sequencer income from these L2s. 

As a part of the proposal, Optimism will associate with an over-the-counter supplier to execute month-to-month conversions of Ether (ETH) to OP. The funds will then be held within the treasury, alongside the opposite remaining ETH. 

Associated: MegaETH mainnet to launch Feb. 9 after clocking 35K TPS in testing

The inspiration said in its proposal that, primarily based on final 12 months’s Superchain income, a comparable allocation would have seen round 2,700 ETH used for buybacks, or roughly $8 million in OP at present costs.

The Optimism Basis stated that the collected OP may very well be used for a variety of functions, together with token burning, funding ecosystem enlargement, and rewarding contributors who assist safe the community.