🚨🤡🤔 ( Creators: The Problem of the OP )
The dissatisfaction with the Optimism team and its validators is based on structural market factors:
Constant Unlocks (Vesting): The biggest villain behind the OP price is the token release schedule. Billions of OP tokens have been held back for the creators (core contributors) and early investors. Periodically, millions of dollars worth of tokens are "unlocked" and enter the market. For whoever receives these tokens for free or for fractions of a cent, selling at any current price means astronomical profit, while dumping sell pressure onto those who bought at the top. [1]
Limited Governance Utility: The OP token is essentially a governance token. It is used to vote on proposals from the "Optimism Collective". It is not used to pay network gas fees (which are paid in Ethereum). Therefore, as long as the Optimism network grows and generates millions of dollars in security fees, that money goes to the sequencers (controlled by the creators), not directly into the pockets of whoever holds the OP token.
The "FDV" (Fully Diluted Valuation) Trap: When the project launched, only a small fraction of the total tokens was in circulation. The total diluted value (if all tokens existed today) is enormous. This means that even if the project becomes famous, the individual value of each token is crushed by the birth of new tokens generated by the system itself to pay the creators and incentives.
The dissatisfaction with the Optimism team and its validators is based on structural market factors:
Constant Unlocks (Vesting): The biggest villain behind the OP price is the token release schedule. Billions of OP tokens have been held back for the creators (core contributors) and early investors. Periodically, millions of dollars worth of tokens are "unlocked" and enter the market. For whoever receives these tokens for free or for fractions of a cent, selling at any current price means astronomical profit, while dumping sell pressure onto those who bought at the top. [1]
Limited Governance Utility: The OP token is essentially a governance token. It is used to vote on proposals from the "Optimism Collective". It is not used to pay network gas fees (which are paid in Ethereum). Therefore, as long as the Optimism network grows and generates millions of dollars in security fees, that money goes to the sequencers (controlled by the creators), not directly into the pockets of whoever holds the OP token.
The "FDV" (Fully Diluted Valuation) Trap: When the project launched, only a small fraction of the total tokens was in circulation. The total diluted value (if all tokens existed today) is enormous. This means that even if the project becomes famous, the individual value of each token is crushed by the birth of new tokens generated by the system itself to pay the creators and incentives.
