Summary
This is a mid-year update on the Foundation’s use of its token budget.
No action is necessary from our Token House delegates; this is purely informational. Feedback is welcome, as always.
Background
Foundation Budget Proposals
The Optimism Foundation administers a portion of the token supply to help further the Collective’s goals. This set of tokens will be referred to as the “Foundation Budget.” The Foundation Budget must be utilized in line with the overall OP Token Allocations, described in detail below.
Going forward, any further budget for the Foundation must be approved by the Token House. As described in the Operating Manual 3 , the Foundation may submit a proposal to the Token House once each year to request additional OP be added to the Foundation Budget.
The first Foundation Budget Approval proposal 10 was approved in May 2023 . As a follow-up to that proposal, the Foundation committed to providing a mid-year update, in between May 2023 and May 2024 . This is that mid-year update. The Foundation’s next formal Budget Approval proposal will be posted in May 2024 .
Overall OP Allocations
The overall ecosystem allocations of the total initial supply of OP (as outlined in the governance documentation 7 ) are as follows:
858 , 993 , 459 OP ( 20 %) to Retroactive Public Goods Funding
1 , 073 , 741 , 824 OP ( 25 %) to Ecosystem Fund (Governance Fund, Partner Fund, Seed Fund, Unallocated)
816 , 043 , 786 OP ( 19 %) to User Airdrops
810 , 329 , 332 OP ( 19 %) to Core Contributors
735 , 858 , 894 OP ( 17 %) to Sugar Xaddies
In April 2022 , 30 % of the total initial token supply was made available to the Foundation for administration in line with the overall token allocations detailed above. In utilizing these tokens, the Foundation may not exceed 30 % of the total supply, and may not exceed any individual category’s allocation limit. In May 2023 , the Token House approved the Foundation’s first Budget Proposal request for an additional 1 OP.
Budget Update
Total Token Supply
As always, the current circulating supply of OP, as well as a breakdown in each category, is maintained in the public OP Token Unlock tracker here 31 . As of 30 Nov 2023 , token supply is as follows:
Category
Total OP Circulating
Total OP Committed
Total OP Allocated
Governance Fund
59 , 040 , 054
73 , 218 , 219
Partner Fund + Seed Fund + Unallocated
64 , 248 , 501
428 , 565 , 480
1 , 073 , 741 , 824
Airdrops
245 , 901 , 955
245 , 901 , 955
816 , 043 , 786
RPGF
8 , 087 , 372
40 , 000 , 000
858 , 993 , 459
Early Core Contributors
258 , 069 , 939
712 , 140 , 140
810 , 329 , 332
Sugar Xaddies
275 , 947 , 126
735 , 858 , 894
735 , 858 , 894
Cumulative Total
911 , 294 , 948
2 , 235 , 684 , 688
% Relative to Fully Diluted Supply
21 . 2 %
52 . 1 %
Foundation Budget
The Foundation has access to 30 % of the total initial supply to administer in line with the allocations outlined above. As of Nov 30 , these tokens have been administered as follows.
See the Notes section below for details on “circulating” vs. “committed.”
Category
Total OP Circulating as of 30 Nov
Change in OP Circulating since May 2023
Total OP Committed as of 30 Nov
RetroPGF
8 , 087 , 372
+ 106 %
40 , 000 , 000
Ecosystem Fund
(Partner Fund, Seed Fund, Unallocated)
64 , 248 , 501
+ 60 %
428 , 565 , 480
Airdrops
31 , 153 , 590 . 1
+ 165 %
31 , 153 , 590 . 1
Cumulative total
103 , 489 , 463 . 1
+ 54 %
499 , 719 , 070 . 1
% of Foundation Budget
8 . 0 %
38 . 7 %
% of Total Supply
2 . 4 %
11 . 6 %
Notes
Circulating and Committed
In this update and going forward, the Foundation will report on “circulating” and “committed” separately in order to provide more detailed information on OP token allocations.
“Circulating” refers to tokens with no known restrictions on sale or transfer.
“Committed” refers to ( 1 ) OP tokens that have been granted subject to a lock-up + ( 2 ) all OP tokens that have been conditionally committed subject to vesting or completing milestones. Examples of “Committed” tokens include:
OP tokens that will be sent out in RetroPGF 3 rewards.
OP tokens that will be sent out per milestone-based grants, such as the OP grant to Base 13 .
Airdrops
The Foundation is aware that the rate of airdropped tokens from the Airdrop allocation has been slower than many community members want or expect. We are excited to renew our focus here in 2024 as the Collective’s strategies for growth take clearer shape.
Ongoing transparency
As always, information about current circulating and committed supply of OP is available in the public OP Token Unlock tracker 31 . This sheet is updated at the beginning of each month.
Next steps
The next Foundation Budget Proposal will be posted for community feedback and Token House approval in May 2024 .
