Optimism Proposes Using 50% Of Superchain Revenue For OP Token Buybacks

The Optimism Foundation has proposed using 50% of Superchain revenue to buy OP tokens on a regular basis, directly linking the token’s value to network activity for the first time. If approved, the plan would mark a clear shift in how OP functions, moving it beyond a governance-only role and tying it to real revenue generated across the Superchain.

The proposal was shared publicly by Optimism Grants council member Michael Vander Meiden and is scheduled for a governance vote on January 22.

What Is The Optimism Buyback Proposal?

The proposal recommends directing half of all incoming Superchain revenue toward monthly OP token buybacks over a 12-month pilot period. These buybacks would be funded using ETH collected from sequencer fees across Superchain networks such as Base, OP Mainnet, Unichain, Ink, World Chain, and Soneium.

Over the past twelve months, Optimism collected 5,868 ETH in sequencer revenue. Based on last year’s figures, the Foundation estimates that around 2,700 ETH, roughly $8 million at current prices, would be used to purchase OP tokens if the plan had been active.

The core idea is that: As Superchain usage grows, revenue grows. As revenue grows, OP buybacks increase.

How Does The Superchain Generate Revenue?

The Superchain is a group of Ethereum layer 2 networks built using the OP Stack. Each participating chain contributes a portion of its sequencer revenue back to Optimism.

This revenue model already exists. What is changing is how that revenue is used.

Key facts about the Superchain today include:

• It controls 61.4% of layer 2 fee market share
• It processes about 13% of all crypto transactions
• It includes major networks like Base, which alone generated about $55 million in profit during 2025

Until now, 100% of this revenue has flowed into a governance-controlled treasury.

How Would The OP Buyback Mechanism Work?

If approved, the mechanism would operate under strict rules designed to reduce market impact and preserve governance oversight.

Key mechanics include:

• 50% of monthly Superchain revenue used for OP buybacks
• Buybacks executed monthly through an OTC provider
• ETH converted to OP within predefined windows regardless of price
• Program pauses if monthly revenue drops below $200,000
• Tokens returned to the Collective treasury

The Foundation plans to begin with January revenue, executing the first buyback in February.

Purchased OP tokens would not be immediately burned or distributed. Governance would later decide whether to burn them, use them for staking rewards, or deploy them for ecosystem incentives.

Why Is Optimism Changing OP’s Role Now?

For most of its history, OP has functioned mainly as a governance token. Its value was tied indirectly to adoption of the OP Stack, not directly to revenue or usage.

The Foundation argues that this structure no longer fits Optimism’s scale. As Vander Meiden put it, OP has long been viewed as a “useless gov token,” and this proposal aims to change that perception by anchoring OP to measurable network demand.

The Foundation states that exchanges, enterprises, and institutions are standardizing on the Superchain because of its security, scalability, and economic clarity. The buyback mechanism is meant to ensure OP reflects that growth rather than sitting idle in a treasury.

How Does This Compare With Other Layer 2 Models?

The layer 2 market has consolidated sharply. Base, Arbitrum, and Optimism now process close to 90% of all L2 transactions. Smaller rollups have seen activity drop by more than 60% since mid-2025, with many operating at a loss.

After Ethereum’s Dencun upgrade cut data costs by around 90%, fee wars pushed many rollups into negative margins. Base stood out by remaining profitable, contributing heavily to Superchain revenue.

Optimism’s proposal formalizes a revenue feedback loop that many L2s lack. Instead of letting profits accumulate without purpose, a portion is recycled into OP, creating a direct link between usage and token demand.

What Happens To The Remaining 50% Of Revenue?

The other half of Superchain revenue would remain under Foundation control. The proposal allows the Optimism Foundation to actively manage these ETH holdings rather than parking them passively.

This includes:

• Supporting ongoing development
• Funding ecosystem growth
• Generating yield where appropriate

Governance would still retain oversight over high-level parameters, but the goal is to reduce delays caused by rigid treasury processes.

What Could OP Be Used For In The Future?

The proposal makes clear that buybacks are only a first step. Future roles for OP could include:

• Coordinating shared infrastructure
• Supporting sequencer rotation
• Enabling deeper protocol-level governance

These ideas are not part of the current vote, but the Foundation frames buybacks as the foundation for a broader evolution in OP tokenomics.

Conclusion

The Optimism Foundation’s proposal would allocate 50% of Superchain revenue to regular OP token buybacks, tying the token directly to network usage for the first time. The plan uses existing sequencer revenue, executes purchases through controlled OTC processes, and keeps governance in charge of long-term allocation decisions. If approved, it would shift OP from a governance-only asset toward a revenue-aligned role within the Superchain economy.

Resources

1. Proposal by Optimism Foundation: OP Token Buybacks

2. Report by CoinTelegraph: Optimism floats OP buyback proposal using Superchain revenue

3. Report by CoinDesk: Optimism proposes OP token buybacks using 50% of superchain revenue