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Optimism to allocate $3 billion in OP tokens to its blockchain developers and projects

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The upcoming token distribution aims to enhance its layer 2 ecosystem.

optimism token funding 2024

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Ethereum layer 2 network Optimism is set to allocate 850 million OP tokens, valued at roughly $3 billion, to its builders, as shared by Optimism in a recent post on X. The tokens represent 20% of Optimism’s initial total supply and will be distributed across four funding rounds scheduled throughout 2024.

According to Optimism, the first funding round, targeting on-chain builders, is designed to encourage the adoption of Optimism. Subsequent rounds will focus on OP Stack, Governance, and Dev Tooling, rewarding those who contribute to infrastructure, governance, and development tools. The final round is slated to conclude in mid-November this year.

Optimism’s funding initiative aims to empower anyone, anywhere, who dedicates their efforts to improving the protocol’s infrastructure. This includes supporting both individual developers and projects instrumental in Optimism’s advancement.

This funding strategy is part of the Retroactive Public Goods Funding (RPGF) program, which is among the most significant in the crypto space. It aims to reward individuals and organizations that have made meaningful contributions to Optimism in various domains, including OP Stack, Administration, Ecosystem, and User Experience and Adoption.

In the most recent funding round in January 2024, Optimism distributed a portion of its 30 million OP tokens to hundreds of developers, including data aggregators DeFiLlama and Covalent.

Previously, Ethereum co-founder Vitalik Buterin applauded Optimism’s dedication to community-driven product funding. Impressed by their approach, Buterin anticipates more projects adopting Quadratic Funding (QF) and RPGF in the future.

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