Optimism, a layer 2 scaling solution for Ethereum, has announced its plans to sell 116 million OP tokens in a series of sales to seven private buyers.
These sales are aimed at raising funds to support further development of the network and to incentivize community participation.
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 (@Optimism) September 20, 2023
The tokens will be sold in batches and the proceeds will be used to finance research and development, expand the team, and support the ecosystem. The exact dates and details of the sales are yet to be announced.
Side Effects Of Sales On Optimism OP Token Price
Although some people were concerned that the sale of tokens by Optimism would result in lower prices due to the dumping of tokens on the market, the likelihood of a significant impact on the price of OP is low since the sale is private.
The tokens used in this particular transaction are obtained from the unallocated portion of the OP token treasury, which means that they are not part of the circulating supply. The unallocated portion of the treasury is a reserve of tokens that have not been distributed or assigned to any specific purpose yet.
According to their website, tokens purchased during the initial offering cannot be sold on secondary markets for two years due to a lockup period.
Buyers are allowed to hand over their tokens to third parties for governance purposes.
The firm has stated that this particular sale was included in their original working budget which accounted for 30% of the initial token supply. Therefore, the sale is not unexpected and was planned for from the outset.
The firm recently concluded its third airdrop, wherein 31,000 addresses participated in delegation activities associated with the network’s decentralized autonomous organization (DAO), Optimism Collective. During the airdrop, 19.4 million OP tokens were distributed among the participants. The sales of Optimism came up merely two days after the successful completion of the airdrop.
Today Optimism is announcing OP Airdrop #3.
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.
— Optimism (@Optimism) September 18, 2023
Optimism, Polygon, and Arbitrum are the three most popular layer-2 scaling solutions.
Optimism’s total transactions surpassed Arbitrum in August, driven by increased activity from Coinbase’s sandbox and Worldcoin’s identity verification project, despite having less total value locked.
