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 on Tuesday 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 knowledge, the token opened at roughly $1.43 earlier than surging to $2.10, however as extra customers received their palms 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 worth, a member of Optimism’s governance group who goes by OxJohn put forward a proposal within the Optimism governance discussion board to exclude addresses that dumped 100% of their airdropped tokens. The submit garnered a big 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 record 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 combined to this point. Some customers have been in full assist, others rejected the concept completely, and a few have been calling for a extra nuanced place.
Person Mohammedt75 stated, “Very legitimate factors. Incentivize individuals who care about the long term and let others who don’t care concerning the ecosystem pack and get out.”
Mgomes said that “one of many targets of the airdrop is to incentivize individuals to make use of the chain. Even when they plan to dump it’s advantageous, as a result of they’ve used Optimism and in the event that they appreciated the chain they’ll maintain utilizing it.“
Member JustinMarx additionally highlighted an fascinating counterpoint, stating that dumpers shouldn’t be penalized as “you by no means know the private 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 people who have used your chain. Be sure that they go straight to your competitor Arbitrum and by no means come again.
— NoSleepJon (@nosleepjon) June 1, 2022
Probably the most high-profile Crypto Twitter customers to weigh in was Cobie, the co-host of the UpOnly crypto podcast who has almost 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 quickly eliminated attributable to being flagged as “inappropriate” however has since been reinstated.
In it, he stated that “my lack of assist for this proposal is just not 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 are able to contemplate them ‘potential future sellers’.”
To counter potential future sellers, Cobie recommended issuing them with a debt token and in addition contemplating using “bodily violence” in opposition to them.
The submit that *legitimately suggests banning sellers* is allowed on the Optimism discussion board.
However a parody of that submit is offensive, abusive and a violation of group pointers and shall be deleted.
Thanks for the reminiscences. pic.twitter.com/Ru0oFnZufw
— Cobie (@cobie) June 1, 2022
Nonetheless, after being prompted to offer a extra critical response to the proposal, Cobie highlighted a number of the reason why he thinks that it’s a foul thought.
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He made factors equivalent to OP’s early worth 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 benefit of creating a brand new tackle to keep away from restrictions.
“The one people who care are price-speculators, merchants and short-term buyers. Governance actually performs the identical whether or not the value is $1.50 or $2. Positive, intensive worth modifications may 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 ‘immediate dumpers’,” he added.
I used to be baited into posting a critical submit since OP Labs employees have been upset with my tone.https://t.co/wikRr8IB8Y pic.twitter.com/Z0fxtOJ8kx
— Cobie (@cobie) June 1, 2022