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Warning: Optimism’s token (OP) will begin inflating at a rate of over 1000% beginning Monday June 18

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by COINS NEWS 168 Views

Edit: meant July 18 not June 18

Optimism has been receiving some buzz recently (including going up nearly 30% the last day, right now trading at 60 cents), but this is a warning that their token (which is a governance token with no other utility) will begin experiencing 1000% inflation soon.

A couple months ago, the token was launched with a drop of 200 million tokens. Over the course of the next year, the number of circulating tokens will increase to over 2 billion through a combination of foundation grants and additional drops.

The first round of foundation grants went out last week to about 20 protocols who applied for “phase 0 grants” and these grants will start being used as incentives for many protocols beginning Monday.

  • Perpetual Protocol will have a 1.8 million OP drop to its users Monday

  • Perpetual Protocol to begin incentivizing lp with OP grant Monday.

  • Thales market began OP LP incentives last Friday, will expand program this week and next week

  • Velodrome received 3m OP tokens, will airdrop 750k next week and incentivize lp of around 30k OP a week

  • Rubicon began OP incentives last Friday

  • Pooltogether to begin OP incentives on Monday

  • L2Dao to begin incentives Thursday

The remaining of the 20 protocols to begin incentives shortly but with no announced start date. And that’s just “phase 0”. Phase 1 already closed as well with even more protocols getting millions in grants and phase 2 will close in a couple days.

The Optimism team is bootstrapping growth by just dumping huge amounts of governance token into the market as incentives. Buyer beware.

Source:

Token allocation plan: https://community.optimism.io/docs/governance/allocations/

Phase 0 grants: https://gov.optimism.io/t/voting-cycle-1-roundup/2619#proposals-2

Edit: oh this doesn’t even include the fact that after year 1, all the VCs star to unlock their tokens as well as the dev team


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