A world of Optimism, where blockchain technology meets scalability! Launched by a team including Ethereum co-founder Vitalik Buterin, Optimism wants to revolutionize the way we think about transactions on the Ethereum network. Let’s take a look at what this project has to offer…
Optimism (OP) is a Layer-2 blockchain built on Ethereum that addresses scalability challenges like high fees and slow transaction speeds. It utilizes optimistic rollups to bundle transactions off-chain before settling them on Ethereum’s mainnet.
Optimistic rollups gather hundreds of transactions into a single batch. This batch is then processed as a single transaction on the Ethereum blockchain. By consolidating multiple transactions into one, it significantly reduces the gas fee per transaction, making it much more affordable — often just a few cents.
The term “optimistic” refers to the assumption that all transactions are truthful unless proven otherwise. If a transaction is suspected of being fraudulent, a validator can challenge it by submitting a fraud proof.
Optimism was conceptualized in January 2019 through the creation of Plasma Group, a non-profit collective focused on Ethereum scalability research. By June 2019, the group incorporated Ethereum co-founder Vitalik Buterin’s work into its research, leading to the development of the Optimistic Rollup concept.
In January 2020, Plasma Group dissolved to establish the Optimism Public Benefit Corporation (Optimism PBC), founded by Benjamin Jones, Karl Floersch, Jing Wang, and Kevin Ho. Jing Wang, Initially a Bitcoin maximalist, but attracted by the inclusive community and the mentorship opportunities Ethereum offered.
The alpha version of Optimism’s Virtual Machine (OVM) launched in February 2020, followed by incremental deployments to ensure security. A year later Optimism’s mainnet underwent a “soft launch” in January 2021 and was publicly released on December 16, 2021.
This review of Optimism (OP) was created for informational purposes. This article is not intended for promotion.
As described above Optimism processes transactions via optimistic rollups, which assume validity by default and allow fraud proofs to challenge invalid transactions.
Optimistic rollups bundle transactions off-chain, assuming validity by default. Fraud proofs can be submitted if errors are detected. This system is managed by the Optimism Collective, which includes two governance houses: the Token House (for OP holders) and the Citizens’ House (focused on funding public goods).
The Optimism Collective is a Decentralized Autonomous Organization (DAO) that governs the Optimism platform. Holders of the Optimism governance token (OP) participate in decision-making processes, voting on vital issues such as protocol upgrades and project incentives.
The Optimism ecosystem is versatile, supporting a wide array of Web3 decentralized applications (DApps). This includes popular decentralized finance (DeFi) platforms like Uniswap, SushiSwap, and 1inch, as well as NFT marketplaces such as Quix and OptiMarket. Users can also access fiat currency on-ramps like MoonPay to purchase Optimism-wrapped Ethereum (OPETH).
The OP token serves as the governance token for the Optimism network, enabling holders to vote on protocol upgrades, funding allocations, and ecosystem development initiatives. It also incentivizes user participation in network activities, such as staking and delegating.
The total supply of OP is capped at approximately 4.3 billion tokens, distributed through a combination of airdrops, ecosystem funding, and public goods initiatives.
For reference, the OP token address on the Ethereum network is: 0x4200000000000000000000000000000000000042.
The distribution is as follows:
Tokens are released gradually to mitigate market shocks, with regular unlocks scheduled for contributors and investors. More info can be found here.
As of March 2025, the circulating supply of OP tokens is approximately 37.7% of the total supply, with an annual inflation rate of 2% that can be adjusted through governance mechanisms. A total of 1.546 billion OP tokens allocated to contributors and investors are set to unlock monthly from May 2023 to May 2026, which may influence price volatility.
Decide where to stake your OP based on your preferences:
To claim the OP airdrop, users should visit the official Optimism website at Optimism.io connect their Ethereum wallet, and follow the claim process if they meet the eligibility criteria.
To qualify for the airdrop, users must have bridged to Optimism before June 23, 2021, used Optimism for at least one day or made a transaction, conducted transactions across four or more weeks, voted on or authored an on-chain proposal, served as a multi-sig signer with 10 or more executed transactions, made an on-chain donation through Gitcoin, or bridged to another chain while still using Ethereum.
The snapshot of eligible addresses was taken on March 25, 2022, at 00:00 UTC. The amount of OP tokens airdropped varies based on eligibility, with an average of around 777 tokens per wallet.
For more detailed information, you can refer to the original article here.
The team behind Optimism thinks that the cost of transactions needs to be virtually negligible—sub-penny costs. This threshold would allow developers and users to experiment without the constant concern about accumulating costs. But sadly they aren’t the only ones that tried to solve this problem.
There is intense competition from other Layer-2 solutions like Arbitrum, Polygon and Base (that runs on their stack), which currently leads in Total Value Locked (TVL) and decentralized exchange (DEX) volume.
Governance and community concerns include the slower pace of airdrop releases compared to investor and core contributor unlocks, as well as the concentration of OP token holdings, with 97.1% of wallets holding less than $1,000 worth of OP while large wallets control the remainder. Long-term holders, defined as those holding for more than one year, account for 62.52% of the supply.
In a landscape crowded with Layer-2 solutions, Optimism shines with its commitment to reducing transaction costs and enhancing user experience. Whether you’re looking to stake OP tokens or simply explore the ecosystem, Optimism offers a promising avenue for both developers and users alike.
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