The Optimism Foundation has unveiled a new governance structure and token as part of its efforts to bring scalability and cost efficiency to Ethereum, the world’s largest smart contract platform.
The “Optimism Collective” was introduced Tuesday afternoon in a lengthy post outlining its mission and governance mandate. described as a “large-scale experiment in digital democratic governance”, the Optimism Collective essentially comprises a group of communities and stakeholders committed to improving the technical capabilities of Ethereum.
According to the details, Optimism Collective will be governed by two components: the House of Citizens and the House of Tokens. The Casa de los Ciudadanos “will facilitate and govern a process to distribute retroactive financing of public goods” through revenues collected by the network. The House of Tokens, to be established through the next aiddrops, will be in charge of voting on protocol improvements and project incentives.
The House of Tokens will be powered by OP, the new Optimism governance token responsible for monitoring network and protocol parameters, as well as creating incentives for users to enter the ecosystem.
Ethereum is ready for its next chapter.
We are ready to scale not only Ethereum (the network), but also the values that thrust it onto the global stage in the first place.
The Optimism Collective is here to reconstruct the incentives of the internet
— Optimism (✨_✨) (@optimismPBC) April 26, 2022
Ethereum is ready for its next chapter.
We are ready to scale not only Ethereum (the network), but also the values that propelled it onto the global stage in the first place.
The Optimism Collective is here to rebuild the incentives of the Internet.
The Optimism Foundation said in its post that the “calls for scalability from the blockchain community are deafening”, referring to the growing demand for fast and efficient smart contract functionalities. Although this demand is being answered by various tier 1 competitors, they all succumb to centralization flaws while abandoning “the security and values of Ethereum,” the foundation said, adding:
“Scaling technology is not enough. We have a duty to scale our values along with our networks.”
Although Ethereum continues to dominate the developer scene, its competitors are growing at a faster rate, according to a January report from cryptocurrency research firm Electric Capital. The report reveals that developer activity is growing on projects like Polkadot, Solana, and Binance Smart Chain, which could reduce Ethereum’s dominance. Meanwhile, Ethereum’s share of the decentralized finance (DeFi) market, as measured by total value locked in protocols, has also fallen sharply over the past 12 months, according to DeFi Llama.
As Cointelegraph reported, progress towards Ethereum’s proof-of-stake upgrade is well underway, though delays have moved the implementation date up by several months. On April 11, the developers of Ethereum put the first “shadow fork” underway of the network to test their hypotheses about future network mergers.
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