Optimism (OP)USD

Optimism is an Ethereum Layer 2 scaling network that uses optimistic rollups to process transactions off-chain in batches and settle them on Ethereum, making transactions faster and cheaper. The project grew out of Plasma Group, an Ethereum scalability research effort, and OP Mainnet has been live since January 2021. Optimism relies on Ethereum's proof-of-stake consensus for security. A sequencer batches and compresses transactions, then posts the resulting data to Ethereum, where a challenge window allows fault proofs before state is finalized. The native token, OP, launched on 31 May 2022. OP is used primarily for governance within the Optimism Collective's Token House, where holders vote on protocol upgrades, treasury spending, and ecosystem incentives. It is not required to pay gas fees on the network. The token launched with an initial total supply of approximately 4.3 billion and is subject to around 2% annual inflation, making the supply effectively uncapped over time. OP was initially distributed through airdrops to early users and contributors, with allocations also made to ecosystem funds, investors, and the core team. Optimism runs Ethereum-compatible smart contracts and decentralized applications, including DeFi protocols and NFTs, while inheriting its security from Ethereum.