As part of its ongoing efforts, the Optimism Foundation unveiled a new governance structure as well as a token in order to improve the scalability (and cost efficiency) of Ethereum (ETH), world’s most popular smart contract platform.
Tuesday afternoon, the “Optimism Collect” was announced in a long post outlining its mission and governance mandate. The Optimism Collective is described as a “large scale experiment in digital democracy governance” and consists of a group of stakeholders and communities that are committed to improving Ethereum’s technical capabilities.
The details reveal that the Optimism Collective is governed by two components, the Citizens’ House (pictured above) and the Token House (pictured below). The Citizens’ House “facilitates and governs a process to allocate retroactive public good funding” through revenues from the network. Token House will be created through future airdrops and is responsible for voting on project incentives and protocol upgrades.
The Token House will be powered by Optimism’s new governance token OP. It will oversee network and protocol parameters, as well as create incentives for users to join the ecosystem.
Ethereum is ready to take on the next chapter. We are ready for Ethereum’s next chapter. Not only is it ready to scale Ethereum (the network), we also have the resources and values that brought it onto the global stage. The Optimism Collective will rebuild the incentives for the internet.
— Optimism (_) (@optimismPBC) April 26, 2022
In a post, the Optimism Foundation stated that “calls for scalability” are being ignored by the blockchain community. This refers to the increasing demand for smart contract functionality. The foundation stated that several layer-1 competitors are responding to this demand, and all of them succumb to centralization flaws, while abandoning “Ethereum’s security and values.”
Scaling technology is not enough. It is our duty to scale our networks and our values.”
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According to an Electric Capital January report, while Ethereum continues to be the leader in developer activity, its rivals are growing faster, according to the crypto research firm. According to the report, developer activity for projects like Polkadot(DOT), Solana(SOL), and BNB Smart Chains (BNB) is increasing. This could threaten Ethereum’s dominance. According to DeFi Llama, Ethereum’s market share in decentralized finance (DeFi), as measured by total value locked has declined significantly over the past twelve months.
While Ethereum accounts for more that half of DeFi TVL’s total, its dominance has declined. Source: DeFi Llama
Cointelegraph reported that progress towards Ethereum’s proof of stake upgrade is being made, but delays have delayed the implementation timeline by several month. To stress test their assumptions about the forthcoming merge, Ethereum developers created the first ever “shadow fork” on April 11.