Optimism
Why Optimism is down 12.7% today
Analysis
Optimism (OP) fell 12.7% over the past 24 hours despite governance approval of a token buyback plan, suggesting the market may have reacted negatively to the details or treated the announcement as already priced in. Cointelegraph reported that Optimism passed a buyback proposal to bolster OP, while The Block noted the plan redirects 50% of protocol revenue to OTC swaps, which may not have been viewed as an immediate catalyst for spot demand.
Contributing Factors (2)
Optimism passes buyback proposal to bolster OP token
The Optimism blockchain will begin to sell half of its Superchain revenue to buy back its own token starting next month, with the tokens held for future ecosystem use.
OP token holders approve buyback plan redirecting 50% of Optimism protocol revenue to OTC swaps
The plan could redirect millions of dollars worth of Optimism protocol revenue "to align the OP token" with the Superchain.
Move Details
Explanation Confidence
Moderate confidence. Multiple factors may be contributing.