Optimism Foundation Proposes Monthly OP Token Buybacks to Align Tokenomics with Superchain Growth

The Optimism Foundation has announced a new proposal to align the OP token with the growth of the Superchain by initiating monthly token buybacks. The buyback mechanism will use 50% of incoming Superchain revenue for the next 12 months, creating structural demand for OP as transaction activity increases. The move represents a shift from a pure governance token to one that is more closely tied to the ecosystem's performance.

The buybacks are part of the Capital Allocation 2.0 initiative, which aims to prevent short-term profit-seeking at the expense of long-term viability. This initiative is a key component of the Optimism Foundation's efforts to establish a new organizational model that avoids common failure modes of both traditional corporate governance and DAOs.

The proposal also includes plans for restructuring capital allocation to better invest in the Superchain and to enhance the role of the OP token. These changes are expected to improve transparency and accountability in how funds are used, with governance mechanisms ensuring that decisions align with the broader ecosystem's interests.

Why the Move Happened

Traditional corporate governance has struggled with short-term optimization at the expense of long-term sustainability, a risk the Optimism Foundation calls 'enshittification.' The foundation has identified this as a major failure mode of corporations, where pressure to maximize shareholder value can lead to underinvestment in mission-critical areas.

In the decentralized space, many DAOs also face challenges in capital allocation. The Optimism Foundation has experimented with various approaches over the past three years, but found that decentralized coordination often leads to inefficiencies. The new proposal seeks to consolidate decision-making under governance while ensuring accountability for outcomes.

How Markets Responded

The market response has not yet been fully measured, but the proposal reflects a broader trend among blockchain projects to refine tokenomics and align incentives with ecosystem growth. The Optimism Foundation's efforts to prevent platform risk—changes to the platform that harm users—have been a core focus of its governance strategy.

The buyback mechanism is designed to ensure that the OP token continues to gain value as the Superchain scales. By tying token demand to real-world activity, the foundation is attempting to establish a more stable and predictable economic model.

What Analysts Are Watching

Analysts are closely watching how the buyback mechanism performs in practice, particularly whether it can generate sustainable demand for OP tokens without creating new market distortions. The proposal is subject to governance approval, meaning it will require community consensus before implementation.

The Optimism Foundation also plans to introduce a legal structure—possibly a DUNA (Distributed Unlimited Liability Company)—to further align governance with operational accountability. This structure would allow more voting power to be transferred onchain and would provide clearer oversight of capital allocation decisions.

The foundation has stated it will transition the Working Constitution to a Bedrock Constitution by the end of the original four-year timeline. This will formalize the governance framework and ensure that the organization remains accountable to its stakeholders.