The Optimism Foundation, which is responsible for the Ethereum layer-2 blockchain Optimism, has recently completed a private sale of approximately 19.5 million governance tokens known as OP tokens. These tokens currently have a market value of around $4.62 each, making the total value of the tokens sold roughly $90 million. It is important to note that the sale comes with a two-year vesting period, preventing the buyer from selling the tokens until that time period elapses. The purchaser can still use the tokens for governance participation during the vesting period by delegating them to third parties.
The Optimism Foundation clarified that the tokens sold were from an unallocated portion of the OP token treasury. These tokens were part of the organization’s original working budget, which accounts for 30% of the initial OP token supply. The foundation assured the community that the OP tokens would be distributed in multiple transactions over the next few days, emphasizing that these transactions were planned and likely related to the private sale. The identity of the buyer and specific details of the sale were not disclosed due to its private nature.
The announcement of the private sale sparked various discussions within the community. Some individuals expressed concerns about the lack of transparency surrounding the sale, while others defended the foundation’s actions, acknowledging the need for the Optimism team to earn a living. Ethereum advocate Anthony Sassano, while supportive of Optimism and personally invested in it, admitted to being uneasy about private sales without transparency.
This is not the first time Optimism has conducted a private token sale. In September of this year, the network transferred 116 million OP tokens valued at approximately $160 million after completing a private sale. At that time, concerns were raised about a potential negative impact on token prices. Since these tokens were also subjected to a two-year lockup, their sale did not have an immediate effect on the token’s price.
The Optimism Foundation’s private sale of OP tokens has generated mixed reactions within the community. While some have reservations about the lack of transparency, others understand the foundation’s need to support itself financially. The two-year vesting period attached to the sale ensures that the tokens cannot be sold immediately, allowing the purchaser to participate in governance activities using the tokens in the meantime.
The sale of these tokens adds value not just to the foundation, but also to the entire Ethereum ecosystem. Exciting times ahead!
It’s disappointing to see the same pattern repeating with another private token sale. Where is the accountability?
The Optimism team is doing a great job of managing their working budget while providing opportunities for governance participation. Balanced approach!