Optimism (OP) Price

OP is the governance token of the Optimism Collective, used primarily for token-weighted governance in the Token House. Participants who hold or receive delegated OP voting power can exercise influence over governance proposals; the weight of that voting power is related to the amount of OP tokens. OP's role should be distinguished from OP Mainnet's blockspace and network revenue. Official tokenomics materials describe sequencer revenue and transaction-related revenue as sources supporting ecosystem mechanisms such as public goods funding, while OP itself is defined here as part of the governance and ecosystem allocation system.

The key to participating in OP governance is bringing voting power into the Token House's proposal, discussion, and voting process. Token House members can submit, review, and vote on different categories of governance proposals; the official overview lists its current responsibilities as overseeing governance-fund allocations, protocol and governance upgrade proposals, and proposing changes to the OP inflation rate, among others. Token holders may also delegate voting power to representatives. Delegation changes who can use the corresponding voting power in the governance process; it does not transfer ownership of OP to the representative. The specific voting rules, eligibility, and process for different proposals remain subject to the governance operating manual and proposal type.

The Token House and Citizens' House are two distinct power structures within the Optimism Collective. The Token House uses voting weighted by the amount of OP, so more held or delegated voting power means greater governance influence; the Citizens' House uses one member, one vote, with equal voting power among members. The purpose of the two houses operating in parallel is not to simply vote on the same matter twice, but to create checks and balances between token-holder interests and the judgment of citizen members. Official materials state that they govern the Collective together and use different distributions of power to reduce the risk that a single interest group controls governance.

OP's initial total supply at genesis was 4,294,967,296 tokens. This initial supply was allocated across five categories: Ecosystem Fund 25%, Retroactive Public Goods Funding 20%, User Airdrops 19%, Core Contributors 19%, and Investors 17%. These percentages describe the allocation framework for the genesis supply; they do not mean that all tokens entered circulation at the same time. Official materials also state that both Core Contributor and Investor allocations have lock-up periods, while community-related allocations are managed and distributed over time by the Optimism Foundation.

Yes. The initial genesis supply was 4,294,967,296 tokens, but official materials provide that OP's total supply will grow at the latest inflation rate approved by governance, so the initial total is not a permanently fixed cap. This mechanism has two layers: the Token House can propose changes to the inflation rate, while the rate ultimately adopted depends on the outcome of the governance process. Therefore, supply assessments should distinguish between the initial genesis supply, supply growth later approved by governance, and circulating supply at a given point in time.

OP's ecosystem allocation does not serve a single purpose. The Ecosystem Fund accounts for 25% of the initial supply and supports the Collective's community and projects through governance, partners, seed funding, and unallocated portions; Retroactive Public Goods Funding accounts for 20% and rewards public goods that have already made an impact. The mechanism has a designed connection to network revenue: official materials list network transaction fees and sequencer revenue as among the sources supporting Retroactive Public Goods Funding. The logic is that funding public goods such as tools, infrastructure, and applications may improve the ecosystem's user experience and create more demand for blockspace; this is an ecosystem funding mechanism and does not mean that holding OP directly entitles a holder to that revenue.

Both the Core Contributor and Investor OP allocations have lock-up periods. A lock-up period means tokens allocated to those categories do not enter general circulation from the outset in the same manner as ordinary tokens without transfer restrictions. A lock-up period only addresses transfer restrictions; it is not equivalent to a known real-time circulating amount, and the amount tradable on a given day cannot be inferred solely from category percentages. Supply assessments also need to consider actual unlocks, distributions, and the definition of circulating supply.

The Token House currently oversees governance-fund allocations and protocol and governance upgrade proposals; it can also propose changes to the OP inflation rate. Members can submit, review, and vote on different categories of governance proposals. For protocol upgrades, delegates can also exercise a veto over upgrade decisions made by the Developer Advisory Board (DAB), serving as a check on technical changes. The Token House remains in a phase of gradually expanding its responsibilities, so its future powers may be adjusted as governance develops.

Circulating supply refers to the amount of OP that has entered general circulation and has no known transfer restrictions. This definition emphasizes whether tokens are freely transferable, rather than merely whether they have been allocated or reserved. Available supply has a broader scope: in addition to circulating supply, it includes tokens whose distribution schedule is determined by a governance body, such as relevant portions of the Ecosystem Fund. Therefore, available supply need not equal the amount immediately freely tradable, nor can it be equated directly with the total genesis supply.

Delegating OP voting power is an arrangement in which a holder designates a representative to exercise the corresponding voting influence in Token House governance. It lets holders participate through representatives who more actively research, discuss, and vote on proposals, without having to give them ownership of OP. Delegation does not guarantee that a proposal will pass, nor does it change the Token House's token-weighted rules: governance influence remains related to delegated or held OP voting power. The matters a representative can actually participate in and the voting mechanism for each proposal category must follow the governance rules in force at the time.