<h2 dir="ltr"><span style="font-weight: bold;">What is Optimism (OP)?</span></h2><p dir="ltr"><span>Optimism is a </span><a href="https://coin360.com/learn/layer-2-crypto-optimistic-vs-zk-rollups" previewlistener="true"><span>layer-2 scaling solution</span></a><span> for Ethereum that aims to enhance the blockchain's capability by increasing transaction speed and reducing costs, without sacrificing the security that the Ethereum network provides.&nbsp;</span></p><p dir="ltr"><span>The technology is designed around the concept of optimistic rollups, which handle transactions outside the main Ethereum chain but post transaction data on-chain to maintain security. This method allows Optimism to achieve faster and cheaper transactions while utilizing Ethereum’s robust security features.</span></p><h2 dir="ltr"><span><br></span></h2><h2 dir="ltr"><span style="font-weight: bold;">What is the OP Token?</span></h2><p dir="ltr"><span>The OP token represents the cornerstone of the </span><a href="https://www.optimism.io/" previewlistener="true"><span>Optimism network</span></a><span>, serving multiple critical functions within its ecosystem. As a utility and governance token, OP facilitates not only the operational aspects of the Optimism layer but also embodies the network's broader economic and governance models.</span></p><h3 dir="ltr"><span style="font-weight: bold;">Key Roles of the OP Token</span></h3><ol><li dir="ltr" aria-level="1"><p dir="ltr" role="presentation"><span style="font-weight: bold;">Governance: </span>OP holders possess voting rights, which are pivotal for the decentralized governance model of Optimism. Token holders can propose or vote on changes to the network to influence the decision-making processes that affect the development and strategic direction of Optimism.</p></li><li dir="ltr" aria-level="1"><p dir="ltr" role="presentation"><span style="font-weight: bold;">Incentive Structure: </span>OP is integral to Optimism's incentive system, which rewards behaviors that align with the network's health and growth. This includes rewarding developers and participants who improve the platform's capabilities and ecosystem.</p></li></ol><h3 dir="ltr"><span style="font-weight: bold;">Economic Model and Tokenomics</span></h3><p dir="ltr"><span>Optimism’s economic model is designed to channel the benefits of blockchain technology into a sustainable ecosystem, largely through the implementation of </span><a href="https://community.optimism.io/citizens-house/how-retro-funding-works" previewlistener="true"><span>Retroactive Public Goods Funding</span></a><span> (Retro Funding). This innovative funding approach redistributes a portion of transaction fees to support public goods and services that contribute to the network's growth and efficiency.</span></p><h3 dir="ltr"><span style="font-weight: bold;">Revenue Generation and Distribution</span></h3><ul><li dir="ltr" aria-level="1"><p dir="ltr" role="presentation"><span style="font-weight: bold;">Sequencer Revenue: </span>Most of the revenue generated within Optimism comes from sequencer fees, which are paid by users to have their transactions processed and included in the blockchain. This revenue is primarily directed toward funding public goods within the network.</p></li><li dir="ltr" aria-level="1"><p dir="ltr" role="presentation"><span style="font-weight: bold;">Public Goods Funding:</span> Revenue from the network is used to fund essential projects and infrastructure through Retro Funding. This not only supports the development of the Optimism ecosystem but also encourages the creation of valuable public goods.</p></li></ul><h3 dir="ltr"><span style="font-weight: bold;">Retro Funding Flywheel</span></h3><p dir="ltr"><span>The Retro Funding model is a cyclical economic strategy designed to reinforce the growth of the Optimism network:</span></p><ol><li dir="ltr" aria-level="1"><p dir="ltr" role="presentation"><span style="font-weight: bold;">Generate Revenue: </span>Demand for block space on Optimism increases, leading to higher sequencer revenue.</p></li><li dir="ltr" aria-level="1"><p dir="ltr" role="presentation"><span style="font-weight: bold;">Fund Public Goods: </span>Revenue is then allocated to fund projects and initiatives that enhance the network’s value.</p></li><li dir="ltr" aria-level="1"><p dir="ltr" role="presentation"><span style="font-weight: bold;">Drive Ecosystem Growth: </span>As these projects deliver value, they contribute to the broader appeal and functionality of Optimism, attracting more users and developers, which in turn increases demand for block space.</p></li></ol><h2 dir="ltr"><span><br></span></h2><h2 dir="ltr"><span style="font-weight: bold;">What Coin is OP?</span></h2><p dir="ltr"><span>OP is often colloquially referred to as a coin; however, it is technically a </span><a href="https://coin360.com/glossary/token" previewlistener="true"><span>token</span></a><span>. The distinction lies in its dependence on the Ethereum blockchain for security and operations, contrasting with coins like Bitcoin, which operates on its own blockchain. OP's status as a token reflects its integration and utility within the Ethereum ecosystem.</span></p><h2 dir="ltr"><span><br></span></h2><h2 dir="ltr"><span style="font-weight: bold;">Is OP a Coin or Token?</span></h2><p dir="ltr"><span>OP is definitively a token, not a coin. This classification is important because it highlights OP's reliance on the Ethereum blockchain for its consensus and security mechanisms, unlike standalone cryptocurrencies that operate on their own bespoke blockchains.</span></p><h2 dir="ltr"><span><br></span></h2><h2 dir="ltr"><span style="font-weight: bold;">Who is the Founder of Optimism?</span></h2><p dir="ltr"><span>Optimism was developed by a skilled team of developers who are part of the </span><a href="https://community.optimism.io/welcome/faq/what-is-the-optimism-foundation" previewlistener="true"><span>Optimism Foundation</span></a><span>, a group committed to maintaining and advancing the network. The foundation focuses on ensuring that Optimism remains a vital and progressive part of the broader Ethereum ecosystem.</span></p><h2 dir="ltr"><span><br></span></h2><h2 dir="ltr"><span style="font-weight: bold;">Is OP a Good Investment?</span></h2><p dir="ltr"><span>Investing in OP requires consideration of both its potential benefits and inherent risks. Here’s a detailed look at the reasons for and against investing in OP:</span></p><p><b id="docs-internal-guid-8bded2e8-7fff-48ba-0657-58c966c59451"></b></p><h3 dir="ltr"><span style="font-weight: bold;">Should I Invest in OP?</span></h3><div><table border="0" width="100%" cellpadding="0" cellspacing="0"><tbody><tr><th><b id="docs-internal-guid-3042f308-7fff-f426-66bc-b7493615b71c">Reasons for Investing in OP</b>&nbsp;&nbsp;&nbsp;</th><th><b id="docs-internal-guid-fe5fd079-7fff-046b-056f-1d258a2d73ec">Reasons Against Investing in OP</b>&nbsp;&nbsp;&nbsp;</th></tr><tr><td><span id="docs-internal-guid-dc290f18-7fff-77db-54e3-aa4db4ebd47e"><ol><li><span style="font-weight: bold;">Scability Solutions: </span>Optimism enhances Ethereum's scalability, which potentially increases its adoption and utility.</li><li><span style="font-weight: bold;">Strong Community and Developer Support: </span>With robust community engagement and comprehensive developer tools, Optimism is poised for growth.</li><li><span style="font-weight: bold;">Growing Ecosystem: </span>The ecosystem around Optimism is rapidly expanding, with many projects building on it, which enhances its value proposition.</li></ol></span></td><td>&nbsp;<span id="docs-internal-guid-af8a9c90-7fff-2d1d-81a3-cc994ca38ae6"><ol><li><span style="font-weight: bold;">Market Volatility: </span>The cryptocurrency market is known for its significant price swings, which affects all assets including OP.</li><li><span style="font-weight: bold;">Regulatory Uncertainty: </span>Cryptocurrencies face uncertain regulatory environments that could impact OP's growth and accessibility.</li><li><span style="font-weight: bold;">Competition: </span>Optimism faces stiff competition from other layer-2 solutions seeking to scale Ethereum, like ZKSpace and Metis Crypto.</li></ol></span></td></tr></tbody></table></div>

Optimism

C-Patex

Hubi

Coinone

Waves Decentralized Exchange

Yobit

cfinex

Idex

BitMarket

Tidex

Escodex

Vebitcoin

Bitmex

allcoin

Bitrabbit

Coinfloor

Braziliex

Fisco

OpenLedger DEX

Cryptomus

Bitsane

Koineks

EtherDelta (ForkDelta)

Ethfinex (closed)

dobi

tradesatoshi

Novaexchange

ABCC

CoinHub

bitmax

TradeOgre

Flipster

AidosMarket

Bit2C

Bgogo

BtcTrade.im

CoinZest

Xena Exchange

Binance

Allbit

Bitrue

C2CX

The Rock Trading

Coinbit

Coinbase

Kucoin

55 Global Markets

simex

HADAX

CoinDeal

Cobinhood

EXMO

Aphelion

BTCBOX

CEX.io

Coineal

bybit

ooobtc

Graviex

Token Store

Radar Relay

ezBtc

VINEX Network

OTCBTC

ProBit

Buda

Coinsquare

BHEX

Bitbns

Rfinex

BiteBTC

GuldenTrader

CryptoMarket

P2PB2B

CoinMate

Coinrail

BCoin.sg

InfinityCoin Exchange

coinsbit

BITKER

BTC Trade UA

coinegg

CoinsBank

Bleutrade

Crypto.com

itBit

Kuna

Zaif

Gatehub

B2BX

Bitibu

XT.com

coinmex

Bibox

Tux Exchange

Paymium

OasisDEX

Tokenomy

Altilly

AirSwap

Altcoin Trader

Alterdice

Bancor Network

BarterDEX

BCEX

BigONE

Bilaxy

binance-uganda

Binance US

Bisq

bitz

Bitbank

BitBay

BITBOX

BitcoinToYou

BitcoinTrade

Bitex.la

Bitfinex

BitFlip

bitFlyer

Bitforex

BitGet

Bithesap

bithumb

bitinka

Bitkub

bitlish

BitMart

Bitmaszyna

Bitonic

Bits Blockchain

BitShares Asset Exchange

Bitso

Bitstamp

Bitstamp (Ripple Gateway)

Bittylicious

Bitunix

BKex

BL3P

BTC Alpha

BTC Markets

BTCC

BTCTurk

Bullish

BW.com

BX Thailand

Bytex

C-CEX

Cat.Ex

Chaince

CHAOEX

Coinall

Coinbe

Coinbene

Coincheck

CoinCorner

Coinex

CoinFalcon

Coingi

Coinlim

Coinnest

CoinPlace

Coinrate

Coinroom

Coinsuper

Coinut

COSS

CPDAX

CredoEx

Crex24

CRXzone

CryptalDash

Cryptohub

Cryptology

Cryptomate

Cryptonex

Dcoin

DDEX

DEx.top

digifinex

DOBI trade

DragonEX

dYdX

EtherFlyer

Exrates

ExtStock

Fatbtc

FMCPAY

FreiExchange

Gatecoin (closed)

Gate.io

GBX Digital Asset Exchange

GDAC

Gemini

GOPAX

GreenX

HBUS

Heat Wallet

Huobi Global

Huobi Korea