Optimism is a Layer-2 solution running on the Ethereum network. Optimism increases Ethereum’s TPS capacity by placing transaction data on the chain and running computations off-chain. Just like similar Layer-2 solutions, Optimism was developed to help solve Ethereum’s scalability issue. Using advanced data compression methods, Optimism speeds up Ethereum transactions and reduces costs.
Optimistic rollups are the foundation of Optimism’s scalability process in which many transactions are aggregated into groups outside of the Ethereum mainnet and sent back to the mainnet. OP Token allows users to join the Optimism Collective, which is a governance system consisting of Token House and Citizens’ House.
Optimism (OP) is down today. Optimism’s token unlock will occur on May 31, before the Bedrock Upgrade scheduled for June 6. Approximately $258M worth of OP Tokens will be unlocked. Optimism’s upcoming token unlock may have contributed to the fall of OP.