- 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.
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.
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