Optimism (OP) is the native token associated with Optimism, a Layer 2 network designed to enhance the Ethereum blockchain's scalability and efficiency. The main goal of Optimism is to reduce settlement times and transaction costs on the Ethereum network.
Optimism aims to achieve this by utilizing a technology called optimistic rollups. Optimistic rollups allow for the compression and processing of transactions in a faster and more cost-effective manner compared to the base Ethereum blockchain. By implementing this Layer 2 solution, Optimism seeks to address the scalability challenges faced by Ethereum and enhance the user experience.
The OP token has a total supply of 4.294 billion tokens. During its distribution, 5% of the total supply was allocated for an airdrop. While there were some issues during the airdrop, most eligible wallets were able to claim their tokens. Additionally, additional token supply is allocated for future airdrops, core contributors, an ecosystem fund, investors, and retroactive public goods funding.
Optimism operates with a governance system called Optimism Collective. This governance framework allows token holders to participate in the decision-making process regarding the development and direction of the Optimism network.
