Optimism Won’t Commit to OP Buyback Beyond 12 Months as Purchases Fall 87%
Optimism will not commit to running its OP buyback beyond the program's first 12 months, the Foundation told BeInCrypto. Monthly purchases have already fallen 87%.
The buyback is the main source of demand for OP. It bought 6.95 million tokens in March. The following month it bought 926,000.
The Optimism Buyback Is Shrinking Fast
Optimism buys OP each month using up to half of Superchain revenue. Superchain is the group of blockchains running Optimism's software. The program runs for one year.
Three purchases are on record, published by the Foundation on August 7:
- January revenue bought 1.57 million OP.
- March revenue bought 6.95 million.
- April revenue bought 926,000.
Spending is settled in ether. It fell from 367.9 ETH in March to 50.2 ETH in April. That April purchase was worth about $95,000. The three months together come to 513.9 ETH, or roughly $975,000.
Timing matters. Coinbase's Base network left the OP Stack in February. Base was the largest chain in the group. OP fell 23% on that news, and Optimism cut more than 20% of its staff weeks later.
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