Optimism passes buyback proposal to bolster OP token

The governance backing the Optimism blockchain has approved a connection to allocate 50% of each Superchain gross to bargain backmost the network’s token implicit the adjacent 12 months, starting successful February.

The connection was initially submitted by the Optimism Foundation connected Jan. 8 arsenic portion of a propulsion to grow the inferior of the Optimism (OP) token and align it with the occurrence of the Superchain, a web of unified blockchains. 

The voting play ended connected Thursday, with the Optimism governance assemblage passing the connection with a 33.27% ballot successful favor, with 3.23% against, and 3.95% abstaining.

Source: Optimism

Up until the vote, 100% of Superchain gross was allocated to a treasury overseen by the Optimism governance community.

Optimism’s Superchain consists of a web of layer-2 (L2) chains built with the project's open-source OP stack, specified arsenic Sony’s Soneium, Unichain, Ink, and Coinbase’s Base. It generates income successful Ether (ETH) via sequencer gross contributed by these L2s. 

As portion of the proposal, Optimism volition spouse with an over-the-counter supplier to execute monthly conversions of Ether (ETH) to OP. The funds volition past beryllium held successful the treasury, alongside the different remaining ETH. 

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Optimsim Foundation stated successful its connection that, based connected past year’s Superchain revenue, a comparable allocation would person seen astir 2,700 ETH utilized for buybacks, oregon astir $8 cardinal successful OP astatine existent prices.

The Optimism Foundation said that the accumulated OP could beryllium utilized for a wide scope of purposes, including token burning, backing ecosystem expansion, and rewarding participants who assistance unafraid the network. 

Optimism Foundation enforcement director  Bobby Dresser said successful a connection to Cointelegraph that the support was an “exciting archetypal measurement successful expanding the relation of the OP token” and the programme “will assistance align the OP token’s worth with the occurrence of the Superchain ecosystem.”

Despite voting done a large shakeup to the dynamics of the OP token, the terms is yet to respond positively. OP is down 1.9% implicit the past 24 hours to commercialized astatine $0.26, according to CoinGecko data.

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