ETH scaling project Optimism has launched a DAO and will airdrop OP tokens to 267,000 ETH wallet addresses. So let’s read more in our latest Ethereum news today.

The Optimism Collective will administer the protocol but will also fund public goods. ETH scaling project Optimism announced that it has created its own DAO called Optimism Collective and will airdrop the tokens to thousands of ETH wallet addresses. DAOs, or short for Decentralized Autonomous Organizations, are blockchain-based groups that make decisions using a group’s native token. In this case, the Optimism Collective is given the task of turning the revenue from Optimism’s transaction fees into grants for public goods.

Public goods in the physical world are things not owned by individuals, such as infrastructure, 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 retrospective public goods incentives that benefit optimism, Ethereum and the collective as a whole.”

The collective is split into two houses, the token house, which governs matters such as software upgrades, incentive structures, and the allocation of funds. The community center determines how funds for public goods are distributed. Both will use square voting intended to reduce the impact of large token holders, and most DAO models allow one vote per token held, while square 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 users can become sluggish and expensive to use. Optimism helps reduce congestion by creating a second layer over ETH and consolidating it into one transaction. Instead of checking that all transactions are valid, Optimism assumed they were, but it still has a mechanism to handle them if it turns out not to be. According to PBC product lead Bobby Dresser, the point of introducing OP is to support crypto scaling, and the path to a superchain can be paved with public goods.

Ethereum Raised optimism, scaling, eth, blockchain

Optimism drops 5% of the initial token supply into the wallets that used the protocol and can contribute to Web3 communities and even benefit from using the scaling technology as ETH prices it 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 if you’re eligible.”

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