Analysis Tokenomics Optimism

• Overview of the project Optimism
• Analysis tokenomics Optimism
• Current situation
• Token Allocation
• Token Release Schedule
• Token Use Case
• Learn about Optimism Collective
• Operation status of Optimism
• Epilogue

Overview of the project Optimism

Optimism (OP) is a Layer 2 solution for Ethereum, aiming to increase speed, reduce transaction costs, and create a better user experience. This project is built on Optimistic Rollups technology, a Layer 2 protocol for extending the throughput of Ethereum. By processing transactions off-chain and sending only results and proof-of-chain, Optimistic Rollups reduces the number of transactions that have to be processed on main Ethereum, resulting in faster transaction speeds and cheaper costs.

Analysis tokenomics Optimism

Current situation

OP is a token of the Optimism project, totaling 4,294,967,296 tokens. The system will allow 2% inflation per year. At the moment, only 234,748,364 tokens are in use, which is about 5% of the total tokens.

Optimism does not organize any public token sale, but only accepts qualified users. June 2022 was the first time the project had an OP airdrop and since then, no other OP airdrop event has been held.

With a price of 2.4 USD and a market capitalization of 562 million USD, the total capitalization of the project is about 10.2 billion USD. Let's quickly compare Optimism's metrics with other Layer 2 projects to see the results.

OP is a private token for the Optimism project. There are a total of 4,294,967,296 tokens and an annual inflation rate of 2%. Currently, the number of tokens available is only 234,748,364, which is only 5% of the total. Compared to other Layer 2, OP's Market Cap/TVL ratio is very low. Thus, OP's price can be considered as reasonable and cheap compared to what the project is doing. However, when looking at the Market Cap/FDV (Future Development Value) ratio, we see that OP has a very high level of future inflation, which is much lower than other Layer 2 projects. Therefore, we need to be careful when interested in buying OP tokens at current prices, especially if we want to hold it for the long term.

Token Allocation

The OP project will allocate Tokens in the following way:

• 20% for Retroactive Public Goods Funding: The reward of the main system of Optimism Collective.
• 25% for Ecosystem Fund: To support development in Optimism's ecosystem by providing capital for projects.
• 19% for User Airdrop: To airdrop for users, starting from Airdrop #1.
• 19% to the main contributors: The share to the people who contributed to the development of Optimism.
• 17% for previous investors: The portion is reserved for investors participating from previous funding rounds.

Token Release Schedule

According to information from Optimism, the special token for Core Contributors and Sugar Xaddies will be locked for the first year, then gradually unlocked over the next 3 years.

The community tokens (including Ecosystem Fund and RetroPGF) and Airdrops will be distributed as soon as OP tokens are listed and will continue to be distributed gradually in the near future. The management of community token pool distribution will be entrusted to the Optimism Foundation.

Token Use Case

OP is a special token, used only in the management of Optimism Collective. This token helps Optimism Collective operate professionally and efficiently. The next part of the article will explain how Optimism Collective works and the impact it has on OP, to help you understand better.

Learn about Optimism Collective

Optimism Collective represents a new direction in governance, where all activities are managed according to the model of “democratic governance by digital”. It focuses on supporting the sustainable development of the decentralized ecosystem.

Optimism Collective unites communities, projects and citizens to operate under a mutually beneficial contract, with the goal of “vision = benefit”. Specifically, if you join and build with the ecosystem, you will get better benefits.

In Optimism Collective, there are two main divisions to manage: Token House and Citizens' House. We ensure a balance between short-term interests and long-term vision of all members.
Optimism Collective is a “digital-based democratic governance” platform with the goal of creating a sustainable, fast-growing ecosystem.

After the airdrop event, the Token House was set up. OP token holders can vote governance on issues such as protocol upgrades, project support on Optimism.

Citizens' House will participate in managing issues related to the distribution of benefits from the network's activities to project developers and contributing users.

Token House and Citizens' House vote together to decide on common issues such as network parameters and user rights.

Optimism Collective will provide the opportunity to benefit from three main groups:

1. Token Holders OP: By participating in the governance at Token House, token holders will receive a reward from the revenue of the protocol.
2. Contributors and Builders: People involved in community building activities benefit from retroactive public goods funding. When they contribute their efforts, time and wisdom to building a better community, they will receive rewards from this program.
3. Users and community members: Through airdrops and incentives from projects sponsored by Optimism, users and community members will receive accumulated value.

Overall, Optimism has a positive future as demand for block space increases, profits increase, and part of it will be shared with users and builders through retroactive programs.

Owning the project's OP token will bring many opportunities for owners. They will have the right to participate in the operational management of the protocol and receive rewards for its use. However, at present, this model lacks clarity on the distribution of rewards and management is not entirely in the hands of token holders.

Operation status of Optimism

Recently, the Optimism network has experienced an exciting time based on the implementation of the Optimism Quests program. This is a program that encourages users to learn and invest more in the crypto space. However, the majority of participants have expectations regarding the judging criteria for the next OP airdrop. This event causes the OP price to increase shortly thereafter.

Epilogue

In summary, we can make preliminary comments about the tokenomics of the Optimism project as follows: The Optimism project is developing well with the attraction of TVL and users, and the support program for users. The OP token value is overvalued, but it still takes time to increase in value. With limited use application, OP needs to come up with many useful use cases to generate long-term buying power.

• Ethereum Analysis: ETH is about to enter a new bull cycle
• Analyst thinks Ethereum price could continue to drop to $2,900