Optimism, a prominent Ethereum Layer-2 scaling solution, has earmarked a substantial $3.3 billion worth of its native OP tokens to fund initiatives and contributors enhancing the blockchain space. The Optimism Collective, the governance branch of the network, will oversee the allocation of 850 million OP tokens, which accounts for a fifth of the token’s total supply. The distribution will occur across four distinct rounds beginning in May and extending into 2024.
Strategic Token Allocation for Ecosystem Growth
The Optimism Foundation’s COO, Bobby Dresser, revealed that of the total OP tokens set aside, the initial three rounds have seen the disbursement of 40 million OP tokens, currently valued at approximately $158 million. The upcoming fourth round will introduce retroactive public goods funding, empowering developers to propose the recipients of the tokens. Community members will then vote on which projects should receive funding based on their contributions to Optimism’s ecosystem.
Subsequent funding rounds, spanning fifth to seventh, aim to incentivize those enhancing infrastructure, governance, or development tools within the Optimism network. The initiative encourages broad participation, offering rewards to “everyone working everywhere” to better the platform. The final round of funding is set to conclude by mid-November.
Encouraging Contributions to Public Goods in Crypto
Retro funding targets individuals and projects that provide public services within the cryptocurrency sector free of charge. These contributions often go unrecognized in traditional funding avenues, such as venture capital, due to their non-profit nature. This innovative funding model seeks to acknowledge and remunerate those who have already demonstrated their value to the community.
In its most recent round in January, a diverse group of recipients, including data analytics platforms DefiLlama and L2Beat, the Revoke.cash tool, and blockchain investigator ZachXBT, were granted a portion of 30 million OP tokens. Ethereum’s co-founder, Vitalik Buterin, lauded Optimism’s dedication to funding public goods, expressing his eagerness to see more projects engage in such funding initiatives.