My honest thoughts on Optimism buybacks:
Optimism passed an 84% vote to use 50% of Superchain revenue for OP buybacks.
Price stayed flat on announcement.
Here's what's actually happening:
What They're Doing
> Optimism earns revenue from Superchain chains (Base, Unichain, World Chain all pay fees)
> Last 12 months: $17.6M revenue
> New plan: Use 50% ($8.8M) to buy back OP tokens monthly
> Starts February 2026
Where the Money Comes From
> Base (Coinbase's L2) generates 87% of all Superchain revenue
> Optimism collected $17.6M total last year from all Superchain chains
> Most of this came from Base's fees
> Base keeps majority of what it earns, pays Optimism a percentage
> So Optimism built the technology but Base captures most of the value
The Execution Problem
> Foundation wants to use private OTC deals instead of buying on DEXs. Their reason: "DEX liquidity isn't sufficient"
> But critics point out: If your own DeFi ecosystem can't handle $700K monthly buys, that's a bad signal
Why Major Delegates Voted Against
> GFXlabs: "Financially self-cancelling and value destructive"
> Their logic: Don't buy back tokens while you're still issuing new tokens for grants
> Better option: Use revenue to pay for grants directly, stop issuing new tokens
> Worried OTC lacks transparency - could be exit liquidity for insiders
The Market Response
84% governance approval = 0% price increase
OP is down 79% over the past year
Concept is right: tie token to revenue
Execution has issues: OTC opacity, continuing to issue tokens while buying back
Foundation promised to move on-chain in 6 months - we'll see if they follow through