Optimism's Strategic Proposal: OP Token Buybacks from Superchain Revenue

The Optimism Foundation has introduced a new initiative aimed at linking the OP token's value more closely to the performance of the Superchain. This proposal represents a significant change in how layer-2 tokens engage with their respective ecosystems.

Key Takeaways

The Optimism Foundation has proposed using 50% of its Superchain sequencer revenue for monthly OP token buybacks.
This initiative aims to shift the OP token’s role from merely being a governance token to one that has its demand driven by overall Superchain network activity.
If implemented, the buyback program will run for 12 months starting in February, pending a governance vote on January 22.
The proposal reflects a broader trend of linking token economics with actual network utilization rather than solely relying on incentives or governance rights.

Optimism proposes OP token buybacks using superchain revenue

Transition of OP Token Role

In this proposal, Optimism aims to convert half of its monthly sequencer revenue into OP tokens through an over-the-counter (OTC) provider. The acquired tokens will be stored in the Collective treasury. Meanwhile, any remaining ETH will be managed by the Optimism Foundation following specific guidelines, with governance retaining control over how capital is allocated.

In the previous 12 months, Optimism recorded 5,868 ETH in Superchain revenue. With the proposed buyback allocation, about half of that would potentially translate to around $8 million in OP tokens at current pricing. This pilot program will be evaluated after one year.

This shift is significant because, traditionally, most layer-2 tokens rely on growth incentives and governance rights, which do not consistently relate to real-time protocol revenue. Optimism’s plan tests whether directing sequencer cash flows back to the token can foster a stable link between network use and token economics.

Importance of Superchain Aggregation

Data from DefiLlama highlights why Optimism emphasizes this initiative at the Superchain level rather than focusing on a single chain. Currently, the OP Mainnet has a Total Value Locked (TVL) of $309 million and reported chain revenue of $459 in the past 24 hours.

OP Mainnet TVL

The OP Mainnet is designed to operate as a low-fee environment, resulting in relatively low chain and application revenues compared to its historical TVL. By pooling sequencer revenue across multiple OP Stack chains, Optimism is hoping that scaling, rather than imposing individual chain fees, can develop a substantial revenue stream over time. In this context, buybacks are seen less as a means of generating yield and more as a strategy for alignment.

Market Context: Structure Over Price

Recently, OP’s price has decreased, and the proposed buyback strategy did not lead to an immediate uptick in value. OP was priced at $0.32, showing an increase of over 3% in the last 24 hours.

Optimism OP price trend

This outcome aligns with the program's design: conversions are limited to realized revenue and are performed monthly, unaffected by the current market price. Consequently, any changes in supply dynamics will depend more on steady Superchain growth than on the announcement's impact. Therefore, understanding this proposal requires viewing it as a governance-driven redesign of token economics rather than a quick market trigger.

Potential Impact on L2 Value Capture

The governance vote on January 22 will determine if Optimism will proceed with this innovative experiment. If approved, the buyback initiative will begin in February and continue for 12 months, after which the effectiveness will be re-evaluated.

This outcome holds significance not just for OP but also for the larger rollup ecosystem. If collecting sequencer revenue successfully stabilizes token demand without compromising decentralization, it could guide how other layer-2 solutions approach the challenge of value capture in low-fee environments. Conversely, if it fails, it will underscore the difficulties in transforming scale into sustainable token economics.

Final Thoughts

This ongoing initiative by the Optimism Foundation represents a meaningful exploration into the dynamics of layer-2 tokens and revenue linkage, marking a potentially transformative period for the crypto landscape.