BTC PULSE
  • News
    • Altcoins
    • Blockchain
    • Bitcoin
    • Ethereum
    • NFT
    • Regulation
    • WEB 3.0
  • Price Prediction
  • Learn
  • Events
  • Advertise
No Result
View All Result
Play Now
  • News
    • Altcoins
    • Blockchain
    • Bitcoin
    • Ethereum
    • NFT
    • Regulation
    • WEB 3.0
  • Price Prediction
  • Learn
  • Events
  • Advertise
No Result
View All Result
BTC PULSE
No Result
View All Result
Play Now
Home Blockchain

Optimism’s OP Token inflation to be Rectified to 2%

by Chiwuike Owunwa
Oct 12, 2022 - 12:00 am
in Blockchain
Optimism's Op Token inflation to be Rectified to 2%

On the 10th of October, the Optimism project announced that it discovered an error in its smart contract’s logic which set the inflation rate for the OP token to 20% instead of 2%.

When we first launched the OP token, we announced that the total supply would inflate at a rate of 2% per year. However, when we deployed the contract, the rate was mistakenly set to 20%. Later today, we’ll be updating the contract logic to the intended 2%.

— Optimism Governance (@OptimismGov) October 10, 2022

The Optimism crypto project is an Ethereum scaling solution introduced in June 2019. It was created to piggyback off the Ethereum blockchain, taking advantage of Ethereum’s security and infrastructure to process transactions faster and at lower costs.

It operates by processing transactions using a technology called Optimism Rollups, which rolls up hundreds of transactions into one transaction, then transfers the data of those transactions to the Ethereum mainnet, where they are validated. Afterward, it distributes the transaction fees among the hundreds of participating users, resulting in lower costs.

In a turbulent launch, the project airdropped its OP tokens in May 2022, with a total supply of 4.29 billion and no max supply stipulated. Optimism’s governance set an inflation rate of 2% each year during its OP tokens launch. With 25% allocated to funding the Optimism ecosystem, 20% allocated to retroactive public goods funding, and 19% set aside as airdrops to reward users for their helpful activities within the system.

On October 10th, 2022, the governance for Optimism went on Twitter to announce changes to its smart contract. They discovered an error in the contract’s logic that set the inflation rate to 20% instead of the 2% originally announced.

The flaw would have caused the OP token price to fall drastically if not been discovered on time. With an increased inflation rate, the supply would increase, which could be distributed to developers, investors, and core contributors, driving the price down due to inadequate demand.

Fortunately, there would be no negative impacts of the mistake a the inflation rates would start being implemented next year. Since no new tokens have been minted and released into supply, no tokens are currently at risk.

The Optimism governance went on to assure the public that It would promptly rectify the inflation rate to the original 2%, and there has been no intention to change it.

Tags: Optimism
Chiwuike Owunwa

Chiwuike Owunwa

Chiwuike is a frontend programmer and writer with 3 years experience in the Web3. He's meticulous researcher, enthusiastic about Blockchain and the future of crypto, DeFi, and the Metaverse.

Related Posts

blockchain

Gemini Accuses CFTC of Misconduct, Calls Seven-Year Probe Baseless

June 18, 2025

Gemini calls CFTC’s seven-year probe baseless, citing false claims and personal agendas in a formal misconduct complaint to...

Former Celsius CEO Alex Mashinsky exits court after sentencing

Judge Bars Alex Mashinsky From Claiming Celsius Bankruptcy Funds

June 17, 2025

A court ruled Alex Mashinsky and affiliates won’t get Celsius bankruptcy proceeds, clearing the way for creditor repayments...

X suspends crypto platform Pump.fun and its founder Alon Cohen amid wider crackdown

Pump.fun and Founder Suspended in X Crackdown on Crypto Accounts

June 17, 2025

Pump.fun and co-founder Alon Cohen were suspended on X in a crackdown affecting over 20 crypto accounts. X...

Amazon data center powered by nuclear energy from Talen’s Susquehanna plant

Amazon Taps Nuclear Energy to Power AI Data Centers in New Talen Deal

June 16, 2025

Amazon partners with Talen Energy for 1,920MW of nuclear power to fuel its AI data centers via the...

Press Releases

image2

Could XYZVerse Overtake DOGE and SHIB? Analysts Say $0.003333 Could Explode to $10!

March 30, 2025

XYZVerse aims to outpace DOGE and SHIB, with bold $10 price goals, strong community rewards, and rising demand as it...

image1 1

Massive Institutional BTC Buys Could Launch the Next Bull Market: 5 Altcoins to Watch

March 29, 2025

Institutional Bitcoin buys may trigger a market surge. Five altcoins, including $XYZ, stand to gain—early investors could see major ROI...

image1

XRP Faces Strong Resistance While XYZVerse Gains Early Investor Attention With 10 Billion $XYZ Airdrop

March 28, 2025

XRP struggles at resistance, while XYZVerse grabs early investor attention with a 10B token airdrop and rapid growth toward a...

BTC

Popular Memecoin MEW Pledges $10,000 to Pasadena Humane Organization to Aid Animals Affected by California Wildfires

January 20, 2025

MEW memecoin donates $10K to Pasadena Humane for wildfire-affected animals. Join the mission to aid pets and wildlife in crisis...

View All
BTC-Pulse LogoTransparent

© 2024 BTC-PULSE. Disclaimer: The content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.

News

  • Altcoins
  • Bitcoin
  • Ethereum
  • NFT
  • Regulation
  • WEB 3.0

Info

  • Learn
  • Price Prediction
  • Events
  • Press Releases
  • Sitemap

Company

  • About Us
  • Terms of Service
  • Privacy Policy
  • Contact Us
  • Advertise

©2024 BTC-PULSE – All right Reserved.

No Result
View All Result
  • News
    • Altcoins
    • Blockchain
    • Bitcoin
    • Ethereum
    • NFT
    • Regulation
    • WEB 3.0
  • Price Prediction
  • Learn
  • Events
  • Advertise