OP Token Falls After Surprise Optimism Airdrop

The token’s value has fallen as more supply hits the market. 

AccessTimeIconFeb 9, 2023 at 11:49 p.m. UTC
Updated May 9, 2023 at 4:07 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Optimism Network conducted a surprise token airdrop Thursday, sending 11.7 million governance tokens to more than 300,000 wallets, according to a blog post by the layer 2 blockchain’s caretaker group, Optimism Collective.

Optimism’s airdrop is part of the blockchain’s initiative to distribute 19% of its initial governance token supply as the blockchain forges a path toward wider adoption. Optimism distributed 5% of its initial governance token supply, or more than 200 million tokens, in its first airdrop in May.

  • What Challenges Do Appchains Solve?
    00:59
    What Challenges Do Appchains Solve?
  • Appchain Protocol Tanssi Raises $6M
    18:57
    Appchain Protocol Tanssi Raises $6M
  • Breaking Down Internet Computer's 40% Rally
    00:59
    Breaking Down Internet Computer's 40% Rally
  • HSBC Brings Tokenized Gold to Hong Kong; Munchables Exploited for $62M
    02:14
    HSBC Brings Tokenized Gold to Hong Kong; Munchables Exploited for $62M
  • The airdrop comes as Optimism looks for an edge over its largest competitor, Arbitrum, another Ethereum layer 2 albeit one without a token. Arbritrum currently boasts more than double the amount of transacting wallets as Optimism, widening the gap between the two exchange’s transacting wallets over the past month.

    Users who spent gas executing transactions on the blockchain qualified for the airdrop. As did those who delegated the voting powers, which is imparted by the governance tokens, to other users. The Optimism Network recognizes the sharing of voting powers as a “positive sum activity” to bolster the blockchain’s governance system.

    The token fell 13% on the news Optimism’s circulating supply had grown. Even so, OP has rallied nearly 200% over the past few weeks. However, following today’s airdrop announcement, the token’s price dropped 13%. At the time of publication, the token trades at roughly $2.35.

    Thursday’s unannounced airdrop went off relatively smoothly, unlike Optimism’s first attempt in July 2022, when users had to manually claim their allotments. In this case, the distribution was automatic.


    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

    Elizabeth Napolitano

    Elizabeth Napolitano was a news reporter at CoinDesk.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.


    Read more about