Optimism Proposes Using Superchain Revenue to Buy Back 50% of OP

The Optimism Foundation has proposed using 50% of Superchain revenue to buy back OP tokens, a move intended to align the token more closely with the growth of the Superchain. Under the plan, which would begin in February 2026, incoming revenue from the Superchain will be used to repurchase OP over the next 12 months. This initiative aims to create structural demand for the token by tying it directly to the activity on the Superchain.

The proposal outlines a transition for the OP token from a purely governance-focused asset to one that is more closely linked to the Superchain's success. Each transaction on OP Chains contributes to the base of revenue that can be used for buybacks. This strategy is expected to strengthen the token's value proposition and improve its tokenomics.

The Optimism Foundation has been working on a broader transformation of its governance and capital allocation models. This includes refining the governance of the OP Stack and the treasury to ensure long-term sustainability and prevent what it calls 'enshittification'—a scenario where short-term profit-seeking harms long-term innovation. The Foundation plans to introduce updated governance mechanisms over the next six months.

Why the Move Happened

The Optimism Foundation believes that traditional corporate and DAO models have shortcomings when it comes to balancing profit and long-term innovation. The current governance structure of Optimism has faced challenges in capital allocation, leading to inefficiencies and a lack of clarity in decision-making. The new proposal aims to address these issues by restructuring how capital is used to fund the Superchain.

By using Superchain revenue to buy back OP, the Foundation hopes to create a more direct link between the token's value and the protocol's success. This approach is also intended to reduce platform risk for users, ensuring that the Superchain remains a reliable and valuable infrastructure for developers and businesses.

How Markets Responded

The market response to the proposal has been mixed. Some investors see the buyback mechanism as a positive step toward stabilizing the OP token and improving its long-term value. Others are skeptical, noting that the effectiveness of the buybacks will depend on the scale of Superchain activity and the overall demand for OP.

Analysts have also highlighted the potential for increased governance efficiency under the new model. By giving stakeholders more direct control over capital allocation, the Foundation may be able to reduce the risk of short-term decisions that could harm the Superchain's long-term prospects.

What Analysts Are Watching

One key area of focus for analysts is how the buyback mechanism will affect the supply and demand dynamics of the OP token. If the Superchain experiences significant growth, the buybacks could help support the token's price and reduce volatility. However, if activity on the Superchain slows, the effectiveness of the buybacks may be limited.

Another point of interest is the potential for governance improvements. The Optimism Foundation has outlined plans to enhance onchain governance mechanisms and increase accountability for OP Labs. These changes could help prevent the kinds of governance failures seen in some traditional corporate models.

Investors are also watching how the proposal is implemented and whether it receives broad support from the community. The success of the buyback plan will depend on the participation of stakeholders and the overall health of the Superchain ecosystem.

The Optimism Foundation has emphasized the importance of adapting its governance model to meet the evolving needs of the Superchain. By introducing new mechanisms for capital allocation and accountability, the Foundation aims to create a more resilient and sustainable platform for developers and users.