April 19, 2024
Altcoins News

Optimism Allocates $3.3 Billion for Ethereum Community Grants

Optimism, the Ethereum layer-2 scaling network, announced on March 26 that a portion of the 850 million OP tokens would be distributed in four classified rounds, beginning in May and running through 2024.

Bobby Dresser, the Chief Operating Officer of the Optimism Foundation, revealed that the 850 million OP tokens, constituting 20% of the initial token supply, are designated for funding purposes. Notably, 40 million OP tokens, valued at approximately $158 million, have already been distributed across three prior rounds.

Supporting On-Chain Builders and Public Goods

The fourth round will initiate Optimism’s retroactive public goods funding (RPGF), also known as retro funding. This mechanism involves community voting to determine which projects receive tokens based on their demonstrated value. Subsequent rounds will focus on rewarding infrastructure, governance, and development tooling contributors, with an emphasis on inclusivity.

Retro funding serves as a vital resource for contributors who often struggle to secure capital through traditional means like venture capital, given that their contributions may not yield direct profits.

Acknowledgment and Endorsement

In previous funding rounds, entities such as data aggregators DefiLlama and L2Beat, as well as blockchain analyst ZachXBT, received a portion of the allocated OP tokens. Ethereum co-founder Vitalik Buterin lauded Optimism’s commitment to public goods funding, expressing hope for the adoption of similar funding mechanisms by other projects.

Optimism’s initiative underscores the importance of community-driven support for projects and individuals striving to enhance the Ethereum ecosystem, fostering innovation and inclusivity within the blockchain space.

Photo by Jievani

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