Tuesday, March 5, 2024

Optimism token falls 40%, prompting calls to bar dumpers from airdrops

READ ALSO



Optimism’s freshly launched governance token, OP, has plunged 40% since peaking at $2.10, main members of the neighborhood to talk about 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 acquired their fingers 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 at 43% drop.

Following the sharp drop of OP’s worth, a member of Optimism’s governance neighborhood who goes by OxJohn put ahead 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 neighborhood, pulling in 11,200 views, 305 replies and 595 likes.

OxJohn highlighted a number of addresses that obtained not less than 32,000 OP tokens and promptly dumped them in the marketplace, arguing that their actions are “counter-productive” to the neighborhood and diluted the governance course of.

The OP hodler went on to counsel that these accounts ought to be barred from the following spherical of OP airdrops with “a public record of accounts that interact 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 sort 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 shut to the stage of being voted on. The response from the governance neighborhood has been combined thus far. Some customers have been in full assist, others rejected the thought completely, and a few have been calling for a extra nuanced place.

Consumer Mohammedt75 stated, “Very legitimate factors. Incentivize individuals who care about the long term and let others who do not care concerning the ecosystem pack and get out.”

Mgomes acknowledged that “one of many targets of the airdrop is to incentivize individuals to use the chain. Even when they plan to dump it’s wonderful, as a result of they’ve used Optimism and in the event that they appreciated the chain they are going to preserve utilizing it.“

Member JustinMarx additionally highlighted an attention-grabbing counterpoint, stating that dumpers shouldn’t be penalized as “you by no means know the non-public circumstances of somebody who dumped their tokens.”

One of the 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 “Prolonged ineligibility for future airdrops” that was quickly eliminated due to being flagged as “inappropriate” however has since been reinstated.

In it, he stated that “my lack of assist for this proposal just isn’t 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 will contemplate them ‘potential future sellers’.”

To counter potential future sellers, Cobie prompt issuing them with a debt token and likewise contemplating using “bodily violence” in opposition to them.

Nevertheless, after being prompted to present a extra critical response to the proposal, Cobie highlighted a number of explanation why he thinks that it is a unhealthy concept.

Associated: ETH/USD buying and selling pair attracts extra merchants within the first quarter of 2022: Report

He made factors corresponding to OP’s early worth being irrelevant, sellers having completely different motives, the chance to promote and nonetheless interact with governance, the token getting used as a part of buyer acquisition prices from Optimism, and the convenience of creating a brand new deal with to keep away from restrictions .

“The one individuals who care are price-speculators, merchants and short-term traders. Governance actually performs the identical whether or not the value is $1.50 or $2. Certain, in depth 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 scale of the airdrop or the short-term nature of the sell-pressure from ‘instantaneous dumpers’,” he added.