Optimism Proposes OP Buybacks Using Superchain Revenue

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Optimism Proposes OP Buybacks Using Superchain Revenue

The Optimism ecosystem is debating a structural change that would reshape how value circulates between its Layer 2 networks and the OP token.

A newly introduced governance proposal suggests redirecting a significant portion of Superchain-generated revenue toward systematic OP accumulation, marking a shift in how the project approaches long-term token alignment.

Key Тakeaways

  • Optimism is proposing to use Superchain revenue for recurring OP buybacks
  • The goal is to directly connect network usage with token demand
  • Governance would control whether repurchased OP is burned or used for future rewards

Rather than leaving protocol earnings idle in the treasury, the proposal envisions using revenue as an active economic lever – one that connects real usage across the Superchain directly to OP demand.

Turning Superchain activity into token demand

At the center of the proposal is a plan to allocate 50% of Superchain revenue to monthly, over-the-counter OP purchases. The Superchain includes a growing group of Ethereum Layer 2 networks built with Optimism’s tech stack, including OP Mainnet, Base, Unichain, Worldchain, and others.

Over the past year, the ecosystem generated nearly 6,000 ETH in revenue, all of which was directed to a governance-controlled treasury. The new approach would partially reroute that flow, transforming protocol income into recurring token demand rather than passive reserves.

The Optimism Foundation argues that this creates a tighter economic loop: network usage produces revenue, revenue strengthens the token, and a stronger token reinforces incentives for developers, infrastructure providers, and users building on the Superchain.

What happens to the repurchased OP

OP acquired through the buyback mechanism would not immediately exit circulation. Instead, tokens would be returned to the treasury, where governance would later decide how they are used.

Two long-term paths are being considered. One option is burning tokens to gradually reduce circulating supply. The other is distributing OP through staking or security-related rewards, tying token ownership more closely to network participation. Importantly, governance would retain control over all parameters, including pacing, execution rules, and eventual onchain automation.

Safeguards and treasury flexibility

The proposal also introduces limits designed to prevent forced or inefficient execution. Buybacks would be suspended in months when Superchain revenue falls below a defined threshold, and OTC purchases would only proceed if they can be completed within a predetermined fee spread.

Revenue not allocated to buybacks would remain under the foundation’s management, allowing for more dynamic treasury strategies rather than a single fixed use of funds.

A response to long-standing token concerns

While Optimism’s technology has become one of the dominant forces in Ethereum scaling – powering a majority share of Layer 2 activity – the OP token has faced familiar criticism. Like many governance tokens, it has struggled to reflect protocol success directly, while ongoing unlocks have weighed on sentiment despite substantial user airdrops.

This proposal appears to be a direct response to those concerns. By explicitly linking Superchain adoption to OP accumulation, Optimism is signaling a shift toward more tangible value capture for tokenholders.

Strategic realignment after internal challenges

The timing is notable. Late last year, Optimism leadership publicly acknowledged internal missteps, including overexpansion and lack of strategic focus. The buyback proposal fits into a broader effort to simplify priorities and rebuild alignment around a shared economic goal.

If approved, the initiative would place Optimism alongside a growing group of crypto protocols experimenting with revenue-backed token models, reflecting a wider industry trend toward sustainability over pure growth narratives.


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Author

Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.

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