SIP-234: OP Token Distribution

Author
StatusDraft
TypeGovernance
NetworkEthereum & Optimism
ImplementorTBC
ReleaseTBD
Created2022-04-26

Simple Summary

This SIP proposes a distribution mechanism for OP tokens to be claimed from the Optimism Governance Fund.

Abstract

OP tokens will be distributed to projects that have deployed on Optimism, the specifics of that distribution must be decided by Synthetix governance. This SIP proposes a distribution that aligns with the previous approach taken by the council for an orderly migration between L1 and L2.

Motivation

Synthetix governance must decide on how to distribte OP tokens to the community.

Specification

Overview

9m OP have been granted to Synthetix

3m will be used for various incentives, including SNX/USD liquidity.

6m are to be distributed to SNX stakers on Optimism over the next six months. This distribution will be based on weighted debt tied to the weekly snapshot starting from the first snapshot after the OP token launch in late May.

Rationale

This SIP has been modified significantly from the initial proposal based on discussion within the community. The consensus currently is that retro rewards are unneccesary and that most of the OP should go to incentivise new and existing stakers on Optimism. While there is some concern about creating an additional incentive to migrate to Optimism before debt migration is implemented, given the magnitude of the OP incentives it is unlikely many L1 stakers will migrate until debt migration is live. Any smaller stakers who decide to migrate early are unlikely to create sUSD liquidity issues on L1 so this approach is seen as a low risk compromise that rewards current stakers on L2 with a higher initial APY from OP.

Technical Specification

The actual distribution is likely to be done via merkle drop, but we are monitoring the Optimism ecosystem to see whether it is possible to leverage code developed by another project for the OP distribution.

Test Cases

Configurable Values (Via SCCP)

N/A

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