The Optimism Foundation has rolled out a proposed plan for improving the link between the price of the OP token and the development of the Superchain. The plan will mean that from February next year, 50% of Superchain revenues will go towards the repurchasing of the OP token.
OP Token Buybacks Strengthen Superchain Growth
Indeed, over the years, the OP Stack has developed from being a scaling solution for Ethereum to a reputable place for serious developers. Exchanges, businesses, and major institutions are progressively using the Superchain for its security, scalability, and economic viability. This has seen it command 61.4% of Layer 2 fees and 13% of all crypto transactions.
The revenue generated from the Layer 2 chains such as Base, Unichain, Ink, World Chain, and OP Mainnet contributes to the treasury of Optimism. However, according to the proposed mechanism, half of the revenue will be used to buy back the OP tokens. In the future, the token will help with the protection of the infrastructure and governance mechanisms of the Superchain ecosystem.
The proposed token buyback will be carried out on a monthly basis for the next year. The tokens will be channeled back into the treasury to be burned or used in staking rewards. The governance will manage all aspects thereof, while the remaining revenue will be systematically handled by Optimism. Through the value of OP being tied to the level of activity on the network, the OP token establishes a common point in development, infrastructure, and the expansion of the Superchain.
Also Read: Optimism (OP) November Preview: Consolidation or Breakout Ahead?
OP Weekly Structure Signals Decreasing Pressure
On the weekly charts, Optimism (OP) is still trapped in an overall downtrend since mid-2024. The token is currently fluctuating around the levels of $0.31 to $0.32, which is also a region that hasn’t witnessed any significant buying strength in the past. The recent weekly charts also indicate that selling pressure is decreasing.
Source: TradingView
Despite the strongly bearish market configuration, the momentum indicators imply that the press downwards could be stabilizing. MACD remains below the zero line, thus maintaining the dominance of a bearish market. Moreover, the level of RSI at 35 is near the oversold area, and a possible relief bounce is likely if buyers’ confidence is restored.
Also Read: Optimism (OP) Poised for Massive Surge: Could Hit $3.00 Soon!
