The Optimism chain shares Proof of Stake (PoS) consensus with the Ethereum blockchain.
Optimism is a Layer 2 scaling solution built on top of the Ethereum mainnet. It uses optimistic rollups, which bundle large amounts of transaction data into digestible batches, to reduce the cost and latency of transactions on Ethereum. Optimism is much cheaper to use than Ethereum, and it’s increasingly becoming popular along with other layer 2s, such as Arbitrum. Transactions take place on Optimism, but the data about transactions get posted to mainnet where they are validated. Optimism is the second-largest Ethereum layer 2. The ultimate goal of Optimism is not merely to construct a single blockchain but to foster a comprehensive Superchain that thrives on seamless and efficient interaction between different Op-chains. The OP token incentivizes developers to build on the Optimism ecosystem. Optimism allows for significantly higher transaction throughput, making it possible for Ethereum to handle a larger volume of transactions without sacrificing security. With Optimism’s optimistic rollup technology, gas fees are drastically reduced, making dApps more accessible and affordable for users.
The purpose of the Optimism Chain is to provide a Layer 2 scaling solution built on top of the Ethereum mainnet. Optimism uses optimistic rollups to bundle large amounts of transaction data into digestible batches, which reduces the cost and latency of transactions on Ethereum. Transactions take place on Optimism, but the data about transactions get posted to mainnet where they are validated. The ultimate goal of Optimism is to foster a Superchain between different blockchains built on top of the OP Stack.
The Optimism blockchain is governed by the Optimism Collective, which is a group of companies, communities, and citizens working together to reward public goods and build a sustainable future for Ethereum. The Optimism Collective takes an experimental and agile approach to governance, relentlessly iterating towards a system that stands the test of time. Initially, the Collective's model of digital democratic governance will consist of two houses: the Token House and the Citizens' House. The Token House is where $OP holders are represented, and the Citizens' House is where anyone can participate. The Optimism Foundation collaborates with the Collective on shaping the development of governance rules over time, and governance will be adapted following its growth and with the input of the entire community. The Optimism blockchain is secured by validators on the Ethereum blockchain, who are informed of block information by a sequencer (validator in the Optimism network) .
There are over 189 projects built on Optimism. A significant trend is the amount of Decentralized Exchanges, or Dexes. Notable examples include Velodrome, Uniswap V3, Beethoven X, KyberSwap, Curve DEX, and Gyroscope Protocol. Among these, Velodrome stands out as the largest native project, with a Total Value Locked ( of $147.29 million.
The responsibilities of Optimism Governance can be categorized into one of the two primary goals of the governance system: Capture Resistance and Resource Allocation. Within each category, governance responsibilities are identified as (a) the exclusive responsibility of one or the other house, (b) a responsibility where one house drives proposals and the other house may veto, or (c) as a truly shared responsibility subject to approval by each house. This system is designed to help each house play to its strengths and avoid deadlock.
The Optimism Collective is based on the idea that healthy public goods create a thriving and valuable ecosystem. The economics of this ecosystem are designed to generate value for three constituencies:
$OP, has a structured allocation. 25% is for the Ecosystem Fund to support the Collective ecosystem's growth. Retroactive Public Goods Funding gets 20%, rewarding impactful public goods. 19% is for user airdrops, with the first airdrop giving out 5% of OP tokens to active Ethereum community members. Core contributors receive 19%, and investors get 17%. The initial OP supply is 4,294,967,296, with a 2% annual inflation.
