OP (OP) Tokenomics
OP (OP) Information
Ethereum’s layer-two scaling solution Optimism introduced its new governance token OP for the Token House – one of the two hubs constituting the protocol’s new governance system, Optimism Collective. Early users of the network will be granted the opportunity to receive OP airdrops in Q2, 2022, which accounts for 5% of the asset’s total supply.
OP (OP) Tokenomics & Price Analysis
Explore key tokenomics and price data for OP (OP), including market cap, supply details, FDV, and price history. Understand the token's current value and market position at a glance.
In-Depth Token Structure of OP (OP)
Dive deeper into how OP tokens are issued, allocated, and unlocked. This section highlights key aspects of the token's economic structure: utility, incentives, and vesting.
Overview
Optimism (OP) is the native token of the Optimism Superchain, designed to align incentives, fund ecosystem growth, and facilitate decentralized governance. The tokenomics of OP are structured to support long-term sustainability, reward contributors, and ensure robust governance.
Issuance Mechanism
- Initial Supply: OP is an ERC-20 token with an initial supply of approximately 4.29 billion tokens, which began circulating on May 31, 2022.
- Inflation: The protocol initially allowed for a 2% annual inflation rate, but as of May 2023, the inflation rate was set to 0%. The contract owner (MintManager) retains the ability to mint additional tokens, but this is subject to governance and has not been exercised since the inflation rate was set to zero.
Allocation Mechanism
The OP token supply is allocated as follows:
| Category | Percentage | Description |
|---|---|---|
| Ecosystem Fund | 25% | Incentivizes development and growth of the Optimism ecosystem via grants and funding. |
| Retroactive Public Goods Funding (RetroPGF) | 20% | Rewards public goods and contributors retroactively for their impact. |
| User Airdrops | 19% | Distributed in multiple waves to reward users for positive contributions and behaviors. |
| Core Contributors | 19% | Allocated to individuals who developed and maintain the protocol. |
| Investors ("Sugar xaddies") | 17% | Allocated to early investors and backers. |
Airdrops: The first airdrop distributed 5% of the supply to nearly 250,000 addresses. Future airdrops (14% of supply) are reserved for users who positively impact the ecosystem.
Ecosystem Fund: Further divided into Governance Fund (5.4%), Partner Fund (5.4%), Seed Fund (5.4%), and Unallocated (8.8%).
Usage and Incentive Mechanism
- Governance: OP holders participate in the Optimism Collective’s bicameral governance system (Token House and Citizens’ House). Token holders can delegate voting power and vote on protocol upgrades, funding, and other key decisions.
- Ecosystem Incentives: OP is distributed to projects and users through grants, airdrops, and RetroPGF. These mechanisms reward both proactive and retroactive contributions to the ecosystem.
- Feedback Loop: Demand for OP blockspace generates sequencer revenue, which is then distributed via RetroPGF to contributors, creating a self-reinforcing cycle of growth and value creation.
Locking Mechanism
- Core Contributors and Investors: Allocations to these groups were subject to a one-year lockup from the initial circulation date (May 31, 2022), followed by linear vesting.
- Governance and Ecosystem Funds: Distributed on a seasonal schedule, with each season comprising multiple voting cycles. The release of funds is governed by the Token House and subject to periodic review and adjustment.
- Unallocated/Reserves: Reserved for future programs and may be distributed via private sales or new incentive programs, subject to governance approval.
Unlocking Time
- Airdrops: Distributed in multiple waves, with eligibility and timing determined by the Optimism Foundation.
- Contributor and Investor Allocations: One-year lockup followed by linear vesting.
- Ecosystem and Governance Funds: Released seasonally, with specific amounts and recipients determined through governance votes.
- RetroPGF: Distributed in rounds, with the Citizens’ House voting on recipients based on their past contributions.
Tokenomics Table
| Category | Percentage | Lockup/Vesting Details | Usage/Incentive Mechanism |
|---|---|---|---|
| Ecosystem Fund | 25% | Seasonal release, governance-controlled | Grants, project funding |
| Retroactive Public Goods Funding (RetroPGF) | 20% | Distributed in rounds, governance-controlled | Rewards for past contributions |
| User Airdrops | 19% | Multiple waves, eligibility-based | User incentives, ecosystem growth |
| Core Contributors | 19% | 1-year lockup, then linear vesting | Team and developer incentives |
| Investors | 17% | 1-year lockup, then linear vesting | Early backer incentives |
Additional Notes
- Governance: All major allocations and unlocks are subject to on-chain governance, with OP holders able to delegate and vote.
- Security: The protocol employs multi-signature controls and a Security Council for critical upgrades and incident response.
- Future Adjustments: The OPerating Manual and governance structure are subject to periodic review and amendment, ensuring adaptability.
Optimism’s token economics are designed to create a sustainable, incentive-aligned ecosystem that rewards both current and future contributors, while maintaining robust governance and adaptability.
OP (OP) Tokenomics: Key Metrics Explained and Use Cases
Understanding the tokenomics of OP (OP) is essential for analyzing its long-term value, sustainability, and potential.
Key Metrics and How They Are Calculated:
Total Supply:
The maximum number of OP tokens that have been or will ever be created.
Circulating Supply:
The number of tokens currently available on the market and in public hands.
Max Supply:
The hard cap on how many OP tokens can exist in total.
FDV (Fully Diluted Valuation):
Calculated as current price × max supply, giving a projection of total market cap if all tokens are in circulation.
Inflation Rate:
Reflects how fast new tokens are introduced, affecting scarcity and long-term price movement.
Why Do These Metrics Matter for Traders?
High circulating supply = greater liquidity.
Limited max supply + low inflation = potential for long-term price appreciation.
Transparent token distribution = better trust in the project and lower risk of centralized control.
High FDV with low current market cap = possible overvaluation signals.
Now that you understand OP's tokenomics, explore OP token's live price!
How to Buy OP
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OP (OP) Price History
Analyzing the price history of OP helps users understand past market movements, key support/resistance levels, and volatility patterns. Whether you are tracking all-time highs or identifying trends, historical data is a crucial part of price prediction and technical analysis.
OP Price Prediction
Want to know where OP might be heading? Our OP price prediction page combines market sentiment, historical trends, and technical indicators to provide a forward-looking view.
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Disclaimer
Tokenomics data on this page is from third-party sources. MEXC does not guarantee its accuracy. Please conduct thorough research before investing.
