- Optimism has revealed plans to move 116 million tokens worth $162.4 million in a private sale.
- The transactions will be split among seven buyers intended for treasury management.
- The transfer is not expected to influence price due to a two-year lockup and it will be off-exchanges.
Optimism (OP) network has revealed plans to start selling 116 million OP tokens in a private sale immediately. At current rates, these tokens are valued at approximately $162.4 million but the transfer is not expected to impact market price.
Also Read: Optimism airdrop distributes 19 million OP tokens to more than 31,000 addresses
Optimism enters a private token sale
Optimism, a strong contender in the Layer-2 (L2) space for the best Ethereum network and rivaling against Arbitrum (ARB), is selling 116 million OP tokens privately. The sale began on September 20. The news follows an official announcement to community members, indicating that the tokens will be distributed to seven buyers for the network’s treasury management.
Starting today, there will be several transactions totaling approximately 116M OP tokens. We’re sharing as a heads up to our community that these are planned transactions.
— Optimism (✨_✨) (@optimismFND) September 20, 2023
Noteworthy the sale is not expected to impact Optimism price, at least not for now, because the recipients are not expected to book profits immediately. Specifically, the sale will be private, likely between wallets directly. Even after the sale, the entire bucket would be locked for a period of two years. While in lock-up, the buyers would be allowed to distribute the tokens to unaffiliated intermediaries, giving them a voice on governance matters.
Another reason why the transfer is not expected to influence price is that the 116 million tokens will not be sourced from the circulating supply. Instead, it will come from the portion that remains in the treasury and therefore unallocated. According to the network, this is all part of an original plan and is provided for in its “original working budget of 30% of the initial of token supply.”
Notably, this is not the first of such sales, as there was another one earlier in September where the L2 network moved 130 million OP tokens directly to wallets also for treasury management reasons.
Today, we are transferring 130M OP tokens between wallets for treasury management purposes. This is an internal, planned transaction and we’re sharing a heads up to keep our community informed.
— Optimism (✨_✨) (@optimismFND) September 14, 2023
It is also worth mentioning that there is an ongoing airdrop with OP tokens totaling 19.4 million (valued at approximately $26 million at current rates) up for allocations. Up to 31,870 addresses will receive these tokens on merit that they took part in delegation activities of Optimism Collective, the network’s DAO.
Today Optimism is announcing OP Airdrop #3.
— Optimism (✨_✨) (@optimismFND) September 18, 2023
19M OP allocated to over 31k unique addresses to reward positive-sum governance participation in the Collective.
Read on for details on eligibility criteria and allocations.
The airdrops are a strategy to increase engagement on the L2 network and reward user participation.
One user has lauded the foundation for keeping the community involved in matters as intrinsic as internal transfers. The individual, going by OPUser, highlights that this transparency explains the level of interest other DAOs have expressed toward the Optimism network, looking to learn and build around it.
Ethereum development FAQs
What is the next big Ethereum software update?
After the Merge, the Ethereum community is looking at the Sharding upgrade next, which has been slated for sometime later in the year. The development can be summarized in four words, “scalability through more efficient data storage.” The software update will increase the capacity of the blockchain, widening the amount of data that can be stored or accessed. At the same time, all services running atop the Ethereum blockchain will enjoy significantly reduced transaction fees.
What is the difference between hard fork and soft fork?
A fork is the splitting of a blockchain after developers agree and proceed to implement upgrades. The decision comes after these developers reach a consensus for a software upgrade. The ensuing part will see one part continue with the status as is, while the other one will proceed with new features combined with the former ones. A hard fork basically entails permanent divergence of a new side chain from the original one, while a soft fork is doing the same, only difference being that it is temporary.
What is EIP-4844?
EIP-4844 is an improvement proposal for the Ethereum network. The upgrade promises reduced gas fees, which is a valuable offering considering the high transaction cost that continues to daunt crypto players. It has been a long-standing concern for the Ethereum network. The proposal is also referred to as “proto-Danksharding,” with an unmatched ability to increase the speed of transactions on the Ethereum blockchain. At the same time, it helps to reduce the transaction cost as everything becomes decentralized.
What is gas in the context of Ethereum?
Gas token is a new, innovative Ethereum contract where users can tokenize gas on the Ethereum network. This means they can store gas when it is cheap and start to deploy the gas once the market has shifted to the north. The use of Gas token helps to subsidize high gas prices on transactions, meaning investors can do everything from arbitraging decentralized exchanges to buying into initial coin offerings (ICOs) early.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Blur price likely to extend losses to 42% as whale investors dump BLUR tokens
Blur price rallied 352% in just 43 days between October 12 and November 24, which propelled it to create a local top at $0.685. While this move is impressive, BLUR has already shed 26% and trades at $0.502. A minor pullback is likely before the altcoin drops even lower.
Charles Hoskinson says, “There was no Cardano ICO”; argues Bitcoin is not decentralized
Cardano is known as the third-generation cryptocurrency and, at times, even the "Ethereum killer" but never as “not a security”. For that matter, the Securities and Exchange Commission, to date, has only named Bitcoin as "not a security," and XRP partially won that label following its lawsuit win.
Terra Classic price recovery rally hiccups as LUNC meets key barrier amid USTC related hype
Terra Classic is on a recovery rally, ploughing back to recover the ground lost after a steep fall as the price action consolidated within a descending parallel channel. The $0.00005234 support floor came into play, providing the launchpad for a recovery.
YGG price remains stable despite $6.05 million worth of tokens entering the market
YGG price was expected to take a hit on November 27 in lieu of the token unlock event that took place during the day. Interestingly, this was not the case as the altcoin managed to not only deflect damage but also retain investors’ profits.
Three key BTC accumulation levels before ETF approval in January 2024
Bitcoin, from a high time-frame perspective, has been in an up-only trend since the start of 2023. BTC has ignored many sell signals due to the likelihood of an Exchange-Traded Fund approval. With the holidays around the corner, falling liquidity could see BTC discounted from its current level, hovering around the $37,000 region.