The vote will begin on Jan 22, and OP buybacks will begin in February if the measure passes.
Ethereum Layer 2 network Optimism is set to hold a governance vote on implementing token buybacks using 50% of its revenue beginning in February for the next 12 months.
The Optimism Foundation, which supports the chain’s growth and development, announced the move in a blog post today, aiming to “align the OP token with the Superchain’s success” through token buybacks.
The governance proposal will move to a vote on January 22, and if passed, will allocate 50% of Superchain revenue to “buy OP tokens on a monthly basis for the next year.”
Optimism’s Superchain revenue is generated by the network of Layer 2s using the OP Stack, such as Base, Unichain, Ink, World Chain, and OP mainnet, and amounted to roughly 5,900 ETH ($18 million) over the last year, according to the post.
The move could provide a much-needed boost to the OP token, which trades at just $0.31, or a $612 million market capitalization, after trading as high as $4.69 in March 2024.
OP is down 93% from its all-time high, and 82% over the last year.
It should be noted that this proposal authorizes only a 12-month program, indicating it is not permanent.