Optimism Announces $159M Private Token Sell

Optimism's Ethereum layer-2 scaling solution plans a private sale of 116M OP tokens valued at $159M. Tokens are subject to a two-year lockup period.

Sep 21, 2023 - 15:47
Oct 19, 2023 - 14:21
Optimism Announces $159M Private Token Sell
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Optimism, an Ethereum layer-2 scaling solution, has unveiled plans for a private sale of 116 million OP tokens.

Optimism's decision to conduct a private sale ensures that only a select group of seven investors can participate. This exclusivity is designed to mitigate drastic price fluctuations, as the tokens won't be immediately available to the public. A few key points about the sale include:

  • Valuation: The sale, based on current token prices, is valued at approximately $159 million.
  • Source of Tokens: The tokens for this sale come from the unallocated portion of the OP token treasury. This means they aren't derived from the current circulating supply, adding a layer of protection against potential market price depression.
  • Lockup Period: All tokens acquired in this sale are subject to a stringent two-year lockup period. This ensures that the buyers cannot sell these tokens on secondary markets for the specified duration.
  • Token Delegation: An intriguing aspect of this sale is the allowance for buyers to delegate these tokens to third-party entities for governance purposes, as long as these entities are unaffiliated.

This sale isn't a spur-of-the-moment decision for Optimism. It aligns perfectly with the platform's pre-established plans and is accounted for within its "original working budget of 30% of the initial token supply." 

The timing of this announcement is also noteworthy. It comes just two days after Optimism's announcement of its third airdrop, which allocated 19.4 million OP tokens to over 31,000 addresses involved in delegation activities related to the Optimism Collective, the platform's decentralized autonomous organization (DAO).

Optimism, Polygon, and Arbitrum are among the top layer-2 scaling solutions in the sector. While Optimism has a lower total value locked compared to Arbitrum, it surpassed Arbitrum's total transactions in August. This increase was primarily fueled by heightened activity from Coinbase's sandbox and the identity validation initiative, Worldcoin.

Philip Bohmer Philip is a seasoned journalist that brings clarity to the complex world of cryptocurrencies through his articulate and insightful articles. His passion for blockchain technology fuels his writing, making him a trusted voice in the rapidly evolving digital currency landscape.