ETH Scaling Project Optimism Launched A DAO: Report

The ETH Scaling project Optimism launched a DAO and will be airdropping OP Tokens to 267,000 ETH wallet addresses so let’s read more today in our latest Ethereum news.

The Optimism Collective will govern the protocol but will also fund public goods as well. The ETH Scaling project Optimism announced that it created its own DAO known as the Optimism Collective and will be airdropping the tokens to thousands of ETH wallet addresses. DAOs or short for decentralzied autonomous organizations are blockchain-based groups that make decisions and use a group’s native token to do so. In this case, the Optimism Collective will get the task to take the revenue created from the Optimism transaction fees and transform it into grants for public goods.

Possibly the biggest attempt at non-token-holder-centric DAO governance so far. Excited to see where this goes.

👀 https://t.co/9vreC7QsXa

— vitalik.eth (@VitalikButerin) April 26, 2022

Public goods in the physical world are things that are nto owned by individuals like infrastrcuture, clean air, and transportation. In the digital world, they can be open source and in Optimism’s eyes, the protocol is a public good just like the ETH network:

“The Optimism Collective will dispel the myth that public goods cannot be profitable. The Collective will consistently provide massive retroactive incentives for public goods which benefit Optimism, Ethereum, and the Collective as a whole.”

The Collective is split into two houses which is the Token House that will govern concerns like software upgrades, incentive structure, and treasury allocation. The Citizen house will determine how the public goods funding is distributed. Both will use quadratic voting which is designed to reduce the impact of large token holders and most DAO models allow one vote per token held while the quadratic voting makes each additional vote more expensive than the last.

Optimism is a layer-2 scaling solution while the Ethereum blockchain is a layer 1 and loaded with decentralized applications so the users can become more sluggish and expensive to use. Optimism helps to lessen congestion by creating a second layer on top of ETH and rolling them up into one transaction. Rather than checking that all the transactiosn are valid, Optimism assumed that they are but it still has a mechansim for handling them if this turns out not to be the case. According to the PBC head of product Bobby Dresser, the point of introducing OP is to help crypto scale and the path to a super chain can be paved with public goods.

Optimism is airdropping 5% of the initial token supply into the wallets which have used the protocol and can contribute to Web3 communities and even benefit from using scaling technology because ETH is pricing them out. Dresser wrote:

“The airdrop includes Gitcoin donors, bridge users, multisig signers, snapshot voters – even if you haven’t used OP, you should probably check whether you’re eligible.”