What is $OP token? Understanding the governance token of optimism

KEY POINTS

  • The OP token began trading on major exchanges on May 31
  • The OP token is part of the Token House of the Optimism Collective
  • Optimism Lost $15 Million on OP Due to Mistake

Optimism’s OP token, a tier 2 scaling solution for Ethereum, lost its initial momentum after the first airdrop in May, but the token could be on a crooked path given the prospect of additional airdrops over the next four years. before activating itself. is destroyed and reinvented.

Optimism announced a new governance system on April 26, launching a token that creates an ongoing system of incentives for projects and users.

The OP was first released to the most loyal users of the Ethereum scaling solution who used Optimism until March 25th or donated to public goods funds on Gitcoin. Users of Ethereum bridges for Tier 1 and 2 solutions are also eligible for airdrop.

Trading of the OP token began on May 31, when the token was listed on Binance and other major exchanges.

To understand what the OP does, we need to delve into the Optimism Collective’s governance system. The governance system is composed of two Houses: the Casa do Symbol and the Casa dos Cidadãos.

The Token House is established by the #1 Airdrop of OP Tokens, where holders will be able to vote on protocol updates and project incentives as part of a Governance Fund. On the other hand, the Citizen’s House is “the vehicle that allows the distribution of power from any centralized organization to a human-centered and non-plutocratic mechanism”.

“Casa do Cidadão’s primary responsibility will be to fund the public goods that have the most positive impact on the Optimism and Ethereum ecosystems. Casa do Cidadão’s first experiment and its corresponding NFT Citizenship collection will be the next major milestone for the Collective,” according to a blog.

The latter will be launched at the end of 2022, while the former is already active with the airdrop of OP tokens. The collective’s bicameral governance system will improve over time, and the Optimism Foundation will serve as an administrator of the collective, running governance experiments and kick-starting the ecosystem. However, the foundation will eventually dissolve.

OP Airdrop #1 isn’t the only one happening. There will be a “whole season of airdrops” as well. The OP token supply is 2^32 (4,294,967,296) tokens that will be unlocked over four years and the Ethereum Layer 2 solution has allocated 5% of the initial OP supply to Airdrop #1.

One important thing to note here is that the Optimism Collective will self-destruct and rebuild itself over and over again over the years. This was done to ensure that the ecosystem is able to stand the test of time and last for decades.

The token has jumped 6% in the last 24 hours to $0.9 as of 12:10 pm ET, as per CoinMarketCap. After the #1 Airdrop and listing on major exchanges, the OP reached an all-time high of $4.57 but has since been short-sold by investors. With additional airdrops coming, it will be interesting to see if price action can recover $1.

According to wallet data provided by EtherScan, the top 10 addresses account for 87.6% of the supply. Interestingly, these addresses are smart contracts where OP tokens are locked.

Recently, as revealed by the official Optimism Twitter account, attackers stole $15 million worth of OP tokens that the Layer 2 solution intended to send to a cryptocurrency market maker. However, the tokens fell into the wrong hands after market maker Wintermute provided the Optimism team with the wrong blockchain address.

However, taking into account the wallet data and future plans for the OP token, it appears that the creators want the optimism to last for decades.

The illustration shows the depiction of the cryptocurrency Bitcoin, Ethereum and Dash diving into the water

Depictions of cryptocurrencies Bitcoin, Ethereum and Dash dive into the water in this illustration taken on May 23, 2022. Photo: Reuters / DADO RUVIC

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