0
0
Edit: meant July 18 not June 18
Optimism has been receiving some buzz recently (including going up nearly 30% the last day), but this is a warning that their token (which is a governance token with no other utility) will begin experiencing 1000% inflation soon.
A couple months ago, the token was launched with a drop of 200 million tokens. Over the course of the next year, the number of circulating tokens will increase to over 2 billion through a combination of foundation grants and additional drops.
The first round of foundation grants went out last week to about 20 protocols who applied for “phase 0 grants” and these grants will start being used as incentives for many protocols beginning Monday.
The remaining of the 20 protocols to begin incentives shortly but with no announced start date. And that’s just “phase 0”. Phase 1 already closed as well with even more protocols getting millions in grants and phase 2 will close in a couple days.
The Optimism team is bootstrapping growth by just dumping huge amounts of governance token into the market as incentives. Buyer beware.
Source:
Token allocation plan: https://community.optimism.io/docs/governance/allocations/
Phase 0 grants: https://gov.optimism.io/t/voting-cycle-1-roundup/2619#proposals-2
Edit: oh this doesn’t even include the fact that after year 1, all the VCs star to unlock their tokens as well as the dev team
0
0
Manage all your crypto, NFT and DeFi from one placeSecurely connect the portfolio you’re using to start.
