Optimism Token Holders Back 12‑Month OP Buy‑Back Program Tied to Superchain Revenue
Quorum reached on Jan. 28 with 84 % of votes in favour. The plan now awaits a final Joint House approval before the Optimism Foundation can begin converting Superchain sequencer revenue into OP tokens starting in February.
Summary of the vote
The Optimism governance community met the quorum requirement for a proposal that would allocate 50 % of the Superchain sequencer’s monthly revenue to repurchase OP tokens for a full year. The vote, which closed at 1:58 p.m. ET on Jan. 28, recorded participation from more than 84 % of eligible voters in favour of the measure.
While the quorum and support clear the first hurdle, the program still requires a second approval by the Optimism Joint House—a body composed of the Optimism Foundation, the OP Collective, and the Optimism Labs DAO. Passage in the Joint House demands a 60 % super‑majority.
If the Joint House endorses the proposal, the Foundation will start converting the protocol’s ETH earnings into OP tokens in February. Purchases will be executed through an over‑the‑counter (OTC) provider, with each transaction posted to a publicly accessible dashboard. The newly acquired OP will be held in the Collective treasury.
Why the buy‑back matters
The Superchain is Optimism’s umbrella of L2 chains that includes high‑profile projects such as Coinbase’s Base and World Chain. According to Optimism’s own data, the Superchain generated roughly 5,868 ETH over the past twelve months—about $17.6 million at current prices. Independent figures from DeFiLlama show gross protocol revenue of $17.27 million projected for 2025.
By directing half of that revenue toward OP purchases, the Foundation aims to create a direct financial link between the token’s value and the performance of the underlying L2 ecosystem. In a forum post, the Foundation argued that the mechanism would “move OP beyond a pure governance token and give it protocol‑linked demand,” without diverting funds away from ecosystem development.
Community response
The proposal sparked a lively debate on Optimism’s governance forum:
- Critics warned that buying back tokens while new OP continues to be emitted could be “financially self‑cancelling and value‑destructive,” essentially offsetting the benefits of the repurchases.
- Supporters praised the concept of tying token economics to on‑chain revenue but cautioned that off‑market (OTC) purchases might undermine confidence unless the process can eventually be migrated on‑chain.
The Foundation’s response stressed that the program is meant to demonstrate a meaningful shift in the token’s role, not to reduce the budget for ecosystem grants or developer incentives.
Market backdrop
OP’s price has been largely stagnant in the short term, though it posted an 8 % gain over the past 30 days. Over the last year the token has suffered a 79 % decline, a trajectory that mirrors many Layer‑2 governance tokens that have struggled to maintain price appreciation after initial hype.
The move aligns Optimism with a broader industry trend: several projects have introduced or formalised buy‑back schemes to support token price and reinforce the link between protocol success and tokenholder value. Recent examples include:
- Magic Eden, which announced off‑chain buy‑backs of its ME token last week.
- Aave, whose DAO approved a permanent $50 million annual allocation for AAVE buy‑backs in November.
Analysis & potential impact
- Incentive alignment – By using actual revenue generated from transaction fees, the buy‑back program could create a tangible, performance‑based demand for OP, giving holders a clearer upside tied to network activity.
- Governance credibility – Successfully passing a two‑step approval (quorum vote + Joint House) would reinforce Optimism’s multi‑layered governance model and could encourage more ambitious tokenomic experiments.
- Price floor vs. dilution – The 50 % revenue allocation may offset some dilution from ongoing OP emissions, but the effectiveness will hinge on the scale of future Superchain revenue and the market’s perception of the buy‑back’s credibility.
- Transparency – Public dashboards for OTC purchases aim to mitigate concerns about opacity, yet the absence of on‑chain execution may still be a sticking point for purists who favour fully decentralized mechanisms.
Key takeaways
| Point | Detail |
|---|---|
| Vote outcome | Quorum met; >84 % support |
| Next step | Joint House approval (60 % super‑majority required) |
| Buy‑back size | 50 % of monthly Superchain sequencer revenue |
| Revenue base | Approx. 5,868 ETH (~$17.6 M) generated in the previous year |
| Execution | OTC purchases, publicly reported via dashboard; tokens held in Collective treasury |
| Strategic goal | Link OP token value to Superchain performance, move beyond pure governance utility |
| Industry context | Part of an emerging wave of protocol‑funded token buy‑backs (e.g., Magic Eden, Aave) |
If the Joint House endorses the plan, Optimism will become one of the first L2 ecosystems to systematically re‑invest a fixed share of on‑chain revenue into its native token, potentially setting a precedent for other projects seeking to align token economics with protocol growth. The market will be watching closely to see whether the buy‑back translates into sustained price support for OP amid a broader crypto environment still grappling with token‑price volatility.
Source: https://thedefiant.io/news/tokens/optimism-tokenholders-approve-op-buybacks
