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Optimism to Launch New Token and Revamp Governance Structure

Ethereum rollup Optimism could launch a new token in the coming weeks. The L2 network wi also introduced interesting reforms to its governance structure. 

Optimism is a low-cost, high-speed Ethereum Layer 2 (L2) scaling solution created in 2019. Considering Ethereum’s longstanding problem of scalability, Optimism like other L2 chains hopes to alleviate these problems. The network has risen in popularity and use in the past 2 years.

Its new governance token, OP,  will underly the layer-2 protocol and promote Optimism’s adoption in the near future.

Unveiling the Optimism Collective

On Tuesday Afternoon, the Optimism Foundation announced the planned introduction of the Optimism Collective. According to its blog post, the Collective is a decentralized governance structure dedicated to ensuring Ethereum’s long-term viability. 

In other words, the collective hopes to introduce a new digital democratic governance approach, while emphasizing community involvement. As expected, the recently founded Optimism Foundation will manage the Collective. The foundation will also conduct governance tests on behalf of the community. 

Like in some democratic arrangements, the Collective has a bicameral system, featuring two major components: the Citizens’ House and the Token House.

Optimism’s Governance Structure

The first airdrop, whose date Optimism did not release yet, establishes the Token House by bringing in early users who have engaged in beneficial and community-oriented activities. Holders of the OP token will qualify to vote on protocol improvements and project rewards. Additionally, OP oversees protocol and network parameter improvements, plus a continuous system of rewards for users in the Optimism ecosystem.

In contrast, the Citizens’ House will regulate a mechanism for distributing public goods money created from the network’s revenue. Moreso, the Citizens’ House will launch later this year, according to the team. The two houses will work together to dedicate the revenue earned from the Optimism L2 to the community’s growth. Similarly, they will both generate supporting public goods that increase the value of the Optimism network, resulting in more income.

In essence, the Collective is designed to accelerate and support the emergence of a decentralized ecosystem. Optimism seeks to co-create a future of integrated, cooperative digital space.

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Last week, there was a token listing page for the Optimism coin on Coinbase. Understandably, the development led observers to believe the Layer 2 solution was preparing to issue its token. Also last month, the startup secured a $150 million Series B investment round, giving it a $1.65 billion valuation.

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