Optimism’s freshly launched governance token OP has plunged 40% since peaking at $2.10, main members of the group to debate baring those that dumped their tokens from future airdrops.
Cointelegraph reported yesterday that the Ethereum Layer-2 scaling answer was overwhelmed with demand for the primary OP governance token airdrop, as 5% of the token provide was distributed to round 250,000 eligible customers.
As per Coingecko information, the token opened at roughly $1.43 earlier than surging to $2.10, however as extra customers obtained their arms on the free airdrop over the day, OP dropped to as little as $1.09 earlier than climbing again to $1.18 on the time of writing, marking a 43% drop.
Yesterday was an absolute whirlwind. It wasn’t with out hiccups, however to a lot pleasure, OP was born. ‿
We’ll have an intensive retro on Drop Day subsequent week. In the meantime, we need to share some stats popping out of the launch.
With >50% of Drop 1 now claimed, let’s dive in! pic.twitter.com/oGnxB47E3f
— Optimism (✨_✨) (@optimismPBC) June 1, 2022
Following the sharp drop of OP’s value, a member of Optimism’s governance group who goes “OxJohn” put forward a proposal within the Optimism governance discussion board to exclude addresses that dumped 100% of their airdropped tokens. The publish garnered a major quantity of consideration from the group, pulling in 11,200 views, 305 replies and 595 likes.
OxJohn highlighted a number of addresses that acquired not less than 32,000 OP tokens and promptly dumped them available on the market, arguing that their actions are “counter-productive” to the group and diluted the governance course of.
The OP hodler went on to recommend that these accounts must be barred from the subsequent spherical of OP airdrops with “a public listing of accounts that have interaction on this habits” excluded. Of their view, doing so would see the distribution of governance weight to solely those that plan to actively take part.
“Why ought to Optimism Collective proceed rewarding these form of mercenary actors who will dump their tokens on first sight? Why ought to any future airdrops reward these addresses?”
The proposal was submitted purely for concepts and suggestions, and isn’t near the stage of being voted on. The response from the governance group has been blended to date. Some customers have been in full assist, others rejected the concept completely and a few have been calling for a extra nuanced place.
Consumer Mohammedt75 sadi: “Very legitimate factors. Incentivize individuals who care about the long run and let others who do not care concerning the ecosystem pack and get out.”
Mgomes said that “one of many objectives of the airdrop is to incentivize individuals to make use of the chain. Even when they plan to dump it’s superb, as a result of they’ve used Optimism and in the event that they favored the chain they may preserve utilizing it.“
Member JustinMarx additionally highlighted an fascinating counterpoint, stating that dumpers shouldn’t be penalized as “you by no means know the non-public circumstances of somebody who dumped their tokens.”
The proposal to punish $OP airdrop dumpers by excluding them from future airdrops is a few Paraswap shit lol. Sure go punish the one those that have used your chain. Make sure that they go straight to your competitor Arbitrum and by no means come again.
— NoSleepJon (@nosleepjon) June 1, 2022
One of the vital excessive profile Crypto Twitter customers to weigh in was “Cobie” the co-host of the UpOnly crypto podcast who has practically 700,000 followers. He responded to the proposal in his typical satirical/mocking method.
Cobie submitted a prolonged counter-proposal within the discussion board titled “Extended ineligibility for future airdrops” that was briefly eliminated as a result of being flagged as “inappropriate” however has since been reinstated.
In it, he mentioned that “my lack of assist for this proposal shouldn’t be as a result of I disagree with the sentiment. Quite the opposite, it’s as a result of this proposal doesn’t go far sufficient.”
“I suggest that we, Optimism Collective, cancel the long run airdrops of anybody that has bought any token within the final 6 months. These individuals have a sample of undesirable habits, we will contemplate them ‘potential future sellers’.”
To counter potential future sellers, Cobie recommended issuing them with a debt token and in addition contemplate the usage of “bodily violence” towards them.
The publish that *legitimately suggests banning sellers* is allowed on the Optimism discussion board.
However a parody of that publish is offensive, abusive and a violation of group pointers and will likely be deleted.
Thanks for the recollections. pic.twitter.com/Ru0oFnZufw
— Cobie (@cobie) June 1, 2022
Nonetheless, after being prompted to supply a extra critical response to the proposal, Cobie highlighted a number of causes on why he thinks that it is a dangerous thought.
Associated: ETH/USD buying and selling pair attracts extra merchants within the first quarter of 2022: report
He made factors corresponding to OP’s early value being irrelevant, sellers having completely different motives, the likelihood to promote and nonetheless have interaction with governance, the token getting used as a part of buyer acquisition prices from Optimism and the convenience of constructing a brand new handle to keep away from restrictions.
“The one those that care are price-speculators, merchants and short-term traders. Governance definitely performs the identical whether or not the worth is $1.50 or $2. Certain, intensive value adjustments might make governance assaults on Optimism cheaper, however there may be not a single point out of that within the preliminary proposal.”
“And it isn’t actually a priority given the dimensions of the airdrop or the short-term nature of the sell-pressure from ‘on the spot dumpers’,” he added.
I used to be baited into posting a critical publish since OP Labs workers have been upset with my tone.https://t.co/wikRr8IB8Y pic.twitter.com/Z0fxtOJ8kx
— Cobie (@cobie) June 1, 2022
