Optimism approves buyback program to make use of 50% of superchain income beginning in February

• Optimism Governance approves a buyback program utilizing 50% of Superchain proceeds.
• The proposal handed with 84.4% help and started a 12-month trial interval in February.
• Neighborhood reactions vary from bullish enthusiasm to issues about tokenomics.

Optimism introduced that it’ll launch a token buyback program in February, topic to governance approval. Through the 12-month experimental interval, the Optimism Basis will donate 50% of Superchain Sequencer’s internet proceeds to common OP token purchases. The proposal obtained 84.4% approval from representatives and token holders by way of the on-chain governance portal.

The buyback mechanism creates a direct hyperlink between the demand for OP tokens and community exercise throughout the Superchain ecosystem. This assortment of OP Stack-based chains consists of OP Mainnet, Base, Unichain, World Chain, Soneium, Ink, and extra. This system is Optimism’s first formal effort to hyperlink token economics to income era throughout a rising chain community.

Income allocation and monetary administration construction

In keeping with the Optimism Basis, Superchain Sequencer has generated roughly 5,900 Ethereum in income over the previous yr. The 50% allocation designated for buybacks could improve as further chains are launched and buying and selling quantity throughout the community will increase. The remaining 50% of proceeds will proceed to help ecosystem funding, grants, and working prices.

OP tokens acquired by way of the buyback program is not going to be burned or faraway from circulation, however as a substitute will likely be held in Optimism Collective’s treasury. The longer term use of those amassed tokens will likely be topic to subsequent governance selections, together with potential functions akin to staking mechanisms, incentive packages, or burn presents.

The buyback construction introduces a distinct dynamic from OP’s major operate as a governance token. Holders have beforehand influenced protocol upgrades and authorities spending selections with out immediately capturing worth from community exercise. This new mechanism will set up a circulation of capital directed in direction of OP purchases within the open market as the usage of superchains expands.

Neighborhood member Foraga.io referred to as the approval “an enormous step for Optimism. Coordinating OP buybacks and superchain progress creates stronger long-term incentives for everybody who builds and participates within the community. We’re excited to see this play out.”

Breeze posted, “This is the reason I am at all times with Optimism,” and Dean mentioned, “LFG Optimism!!! Nonetheless holding the OP.” Lilibich added: “Kudos,” whereas Maceo posted: “Bull Asf” on the governance determination.

However Senian criticized this strategy as nonsense and accused the staff of denying the realities of their very own enterprise. He mentioned they ignored token holders, turned the OP right into a speculator’s playground, and turned a blind eye to the harm being completed, describing their actions as irresponsible and out of contact with actuality.

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