Optimism Announces Private Sale of 116 Million Tokens Amidst Growth in Decentralized Efforts
Summary:
Optimism, an Ethereum layer-2 scaling solution, plans to privately sell 116 million OP tokens, valued at $159 million, from the unused segment of its token treasury. Despite some concerns, this will not significantly impact OP tokens' price due to the nature of the private sale. The tokens are subject to a two-year lock-in and will fund governance activities by unaffiliated third parties. The sale follows Optimism's third airdrop of 19.4 million OP tokens to over 31,000 addresses related to the network's Decentralized Autonomous Organization.
Optimism (OP), an Ethereum layer-2 scaling solution, has revealed its intentions to sell 116 million OP tokens to a select few private buyers, an essential part of their treasury management strategy. This sale, at current valuations, translates to a $159 million token transition set to commence today with a series of transactions involving approximately 116M OP tokens. The objective of sharing this is to informally notify the community about these premeditated transactions.
Despite concerns from watchful eyes that this sale might lead to a market slump due to an influx of Optimism "dumping" its tokens, there seems to be no potential for a significant effect on the OP tokens' price. This expectation arises from the private sale's structure and the fact that the tokens originate from the untouched segment of the OP token treasury, hence not part of the circulating supply.
According to the Optimism platform, a two-year lock-in period applies to these tokens, prohibiting buyers from trading them in secondary markets. However, buyers have been permitted to appoint unaffiliated third parties for guiding the tokens for governance reasons.
Optimism asserts that this sale aligns with its initial blueprint, fully accounted for in its "initiating working budget of 30% of the inaugural token supply." This sale is scheduled shortly after Optimism declared its third airdrop, which saw 19.4 million OP tokens distributed to over 31,000 addresses. These addresses took part in delegation actions linked to the network's decentralized autonomous organization (DAO), Optimism Collective.
Optimism, along with Polygon and Arbitrum, is among the most extensively utilized layer-2 scaling solutions in the sector. Despite lagging in Total Value Locked (TVL), compared to its competitor, Arbitrum, Optimism has been successful in exceeding Arbitrum's total transactions this past August. This success is largely a result of a surge in activity from Coinbase's sandbox and the identity verification project by Worldcoin.
Published At
9/21/2023 6:00:46 AM
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