Optimism Proposes 50% Revenue Split for OP Buybacks

Optimism Foundation has suggested that half of Superchain revenue be used on OP token buybacks beginning in February, a significant change in OP tokenomics of the governance token. 

The Foundation declared that it is going to radically transform the OP tokenomics. Monthly OP token buybacks will take half of the total Superchain revenue.  

It was announced through a formal blog post. The buyback program will require governance approval before commencing in February. The election will be on January 22.  

Optimism also generates revenues through Superchain networks, which are Base, Unichain, Ink, World Chain, and Soneium. These and all the other chains remit their sequencer revenue to Optimism.  

Superchain earned 5,868 ETH during the previous year. Previously, 100 per cent of that went into a treasury controlled by the government. The new plan diverts 50 percent of the revenue to the purchase of OP tokens.  

Revenue Flywheel Activates Value Capture Mechanism

Superchain has taken over 61.4 percent of the L2 fee market and clears 13 percent of global crypto transactions. Its market share continues to expand in several chains.  

The tokens repurchased are refunded to the token treasury. Governance determines the way in which they are allocated, whether to be burned or given as staking rewards.  

The Foundation considers it the initial step. Future features can be used to stabilize shared infrastructure and match sequencer rotation and shared governance.  

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Treasury Management Expands Beyond Token Buybacks

The other half of the revenue remains under the control of the Foundation. This will enable active treasury management outside existing staking programs. This is aimed at expanding the Superchain economies.  

The proposal converts incentives throughout the ecosystem. The same system is supported by users, developers, providers, and tokenholders. The development is driven by revenue, and so is usage, forming a virtuous cycle.  

The flywheel effect is brought about by enterprise adoption. The opening of a new line of Superchain increases demand. Each purchase in the networks increases the base of buyback.  

The OP Stack became an Ethereum scaling experiment, then a form of standard exchange infrastructure, used by enterprises and institutions. It is secure, scalable, and economical.  

The mechanism is controlled by governance. The parameter of buyback remains in collective control. Distribution needs to be continuously governed by the token treasury.  

Small monthly buybacks will be progressively increased. Expansion will be similar to Superchain growth. The process directly connects network success to OP token value.

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