Optimism DAO split over proposal to fund monthly OP buybacks

Optimism DAO votes to use 50% of Superchain revenue for monthly OP buybacks amid split delegates and OTC transparency concerns.

  • Delegates in the Optimism DAO are voting on a plan to use 50% of Superchain revenue for monthly OP token buybacks.
  • The proposal opened Thursday and the vote ends on January 28, with the ballot available via the vote page.
  • Delegates are divided: some call buybacks a needed signal, others say they divert funds and may not raise token value.
  • Buybacks would be executed over-the-counter (OTC), prompting concerns about transparency and possible token unloading.
  • Supporters note the OP token’s severe decline and believe buybacks could help; critics prefer a business plan for financial sustainability.

Optimism DAO delegates opened a vote Thursday on a proposal that would require the Optimism Foundation to use 50% of revenue from the Superchain to buy back OP tokens each month. The vote runs through January 28 and is live on the official vote page. According to the proposal text, the aim is to align token support with Superchain revenue growth.

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The plan has split delegates. So far, the ballot shows more than 3.8 million votes in favor and just over 19,000 against; the full tally can be viewed on the vote page. Some delegates welcome a visible mechanism to tie revenue to token demand, arguing it signals upside if the Superchain grows.

Other participants say buybacks are a poor capital use while Optimism remains a net seller of OP through grants and other flows. A governance liaison for GFX Labs reposted this view on social media, as noted in a post on X that warned against shortening runway.

Delegates also criticized the plan’s OTC execution and the risk that employees or investors might use OTC trades to sell as tokens unlock. That concern was raised by delegate Michael Vander Meiden in a forum post. The foundation responded in the governance thread, saying “All OTC trades will be reported publicly, either via stats.optimism.io or via the governance forum.” The foundation’s statement appears in the same forum discussion.

External research questions buyback effectiveness, arguing such programs can divert funds from growth, as described by DeFi/defi-teams-increase-token-buybacks-in-bid-to-win-investor-trust/”>researchers at Keyrock and Messari. Supporters, including delegate Milo Bowman, called the buyback a useful signal in another forum post, while GFX Labs urged focus on a business plan for sustainability in a related forum entry.

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Optimism powers the OP stack used by Coinbase’s Base, Uniswap’s Unichain, and Kraken’s Ink. The OP token has fallen more than 93% from its peak and hit an all-time low of $0.25 last month. The vote concludes on January 28; the proposal and current votes are available on the official voting page.

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