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Optimism Foundation sells 19.5M OP tokens in private sales worth nearly $90M

TL;DR

  • Optimism Foundation sells 19.5 million OP tokens for nearly $90 million in a private sale, boosting its financial resources.
  • Tokens come from the unallocated portion of the OP Token treasury, subject to a two-year lockup period.
  • Buyers can delegate tokens for governance decisions, enhancing decentralization within the Optimism ecosystem.

The Optimism Foundation, a key contributor to the development and maintenance of the Optimism network, has announced a significant milestone in its fundraising endeavors. The foundation revealed that it had completed a private token sale, offloading approximately 19.5 million OP tokens for nearly $90 million. The buyer remains undisclosed, adding a layer of confidentiality to the transaction.

Background and context

As a foundational pillar of the Optimism network, the Optimism Foundation plays a crucial role in ensuring the efficiency and functionality of the blockchain. The Optimism network operates as Ethereum‘s layer 2 scaling solution, facilitating faster and more cost-effective transactions. With the burgeoning demand for scalable blockchain solutions, Optimism has emerged as a frontrunner in addressing Ethereum’s scalability issues.

The tokens sold in the private sale are derived from the unallocated portion of the OP Token treasury. These tokens constitute the foundation’s original working budget, earning 30% of the initial OP token supply. Currently, the OP token boasts a circulating supply of 1 billion tokens and a total supply of 4.29 billion.

Lockup period and governance rights

One notable aspect of the token sale is imposing a two-year lockup period on the sold tokens. This lockup period restricts the buyer from trading or transferring the tokens for a specified duration, thereby ensuring stability and minimizing market volatility. 

However, the buyer can delegate the tokens to unaffiliated third parties for participation in governance decisions. This provision grants the same privileges as an unvested holder, further enhancing the decentralization and inclusivity of the governance structure within the Optimism ecosystem.

The successful completion of the private token sale underscores the growing investor confidence in the Optimism network and its underlying technology. With the influx of funds, the Optimism Foundation is poised to accelerate its development efforts and bolster the network’s resilience. Moreover, the expansion of the foundation’s financial resources augurs well for the long-term sustainability and viability of the Optimism ecosystem.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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James Kinoti

A crypto enthusiast, James finds pleasure in sharing knowledge on fintech, cryptocurrency as well as blockchain and frontier technologies. The latest innovations in the crypto industry, crypto gaming, AI, blockchain technology, and other technologies are his preoccupation. His mission: be on track with transformative applications in various industries.

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