Podcast Summary
Optimism's New Governance Model and Upcoming Events: Optimism launches decentralized layer 2 solution, introduces new governance model with citizen and token houses, and hosts Graph Day conference for Web 3 indexing and learning.
The crypto space is buzzing with optimism and new developments, specifically with the launch of Optimism's decentralized layer 2 solution. Optimism, known for its infectiously optimistic team, has introduced the Optimism Collective, which outlines a roadmap for decentralizing the platform and giving more control to the community. This new governance model includes a citizen house and a token house, as well as a retroactive public goods funding system. These innovations aim to make the Optimism layer 2 an attractive and pleasant place for users. Additionally, the crypto community is gearing up for events like Graph Day, a conference focused on Web 3 indexing and learning, which is taking place in June. Overall, the future of Ethereum and the crypto space is filled with optimism and a focus on scaling values and decentralization.
Embracing Ethereum's Progress: Proof of Stake and Layer 2 Solutions: Optimism Project highlights Ethereum's shift towards proof of stake and layer 2 solutions, emphasizing the importance of Lido, Across, and tax-advantaged investing platforms like Alto IRA for easier participation and optimization in the Ethereum ecosystem
We're currently witnessing an unprecedented moment in Ethereum's development, with the era of proof of stake and layer 2 solutions becoming a reality. The Optimism Project, represented by its cofounders Jing, Ben, and Karl Florsch, emphasized this optimistic outlook in a recent blog post. They believe that Ethereum cannot afford to miss this opportunity to push forward with these advancements, which include decentralized staking protocols like Lido and fast, secure cross-chain bridges like Across. These tools are making it easier for users to participate in the Ethereum ecosystem, whether by staking assets or bridging them between different layer 2 networks. Furthermore, investing in crypto in a tax-advantaged way through platforms like Alto IRA can help individuals optimize their wealth while taking advantage of the growing crypto market. Overall, the convergence of these developments underscores the importance of embracing Ethereum's progress and the opportunities it presents.
Exploring Ethereum's shift to Layer 2 and the potential for new coordination systems: Ethereum's transition to Layer 2 solutions presents an opportunity to redesign coordination systems, avoid Web 2 pitfalls, and create new incentive structures, focusing on individual values and rights.
The current shift to Layer 2 solutions on Ethereum presents an unprecedented opportunity to redesign human coordination systems and create new incentive structures, avoiding the pitfalls of centralization seen in Web 2. John Perry Barlow's "Declaration of the Independence of Cyberspace" serves as a reminder of the Internet's potential to create a new realm, but also a warning against repeating the mistakes of the past, such as the concentration of power in centralized entities. Ethereum's rapid scaling is a result of numerous builders creating core infrastructure and incentive systems, but the outcome is uncertain, and there's a risk of recreating Web 2 incentives. It's crucial to ensure that the values and rights of individuals are reflected in these networks. The token is a part of the story but should not overshadow the larger goal of creating a decentralized and value-aligned internet.
A balanced governance system for public goods with a bicameral structure: The Optimism Collective proposes a balanced governance system for public goods using a bicameral structure, with the Token House represented by transferable tokens and the Citizen's House represented by soulbound tokens, to prevent governance rights from being bought and ensure human values are reflected.
The Optimism Collective, a new governance structure proposed by Optimism, aims to create a balanced and decentralized system for public goods through a bicameral governance system. The two houses, the Token House and the Citizen's House, have distinct differences: the Token House is represented by transferable tokens, while the Citizen's House is represented by soulbound tokens, which cannot be sold or transferred. This balance is crucial to prevent governance rights from being bought on the open market and ensure that human values are reflected in the system. The Optimism Collective is a step towards creating a decentralized governed network for the people, by the people, with the goal of achieving a balanced system within the next four years. The project reflects the idea of layer twos as city-states within a larger federal government, and the migration to these layer twos as people making new homes and living in these decentralized communities.
New Governance Model for Optimism Collective on Ethereum: The Optimism Collective on Ethereum proposes a novel governance model with a token house for capital-based decisions and a people's house for individual voter representation, aiming to separate plutocracy and democracy and potentially influencing web 2 governance.
The Optimism Collective, a proposed state on the Ethereum blockchain, is introducing a new governance model with two distinct bodies: a token house and a people's house. The token house represents capital-based decision-making, while the people's house allows for individual voter representation. This system aims to create a clear separation between plutocracy and democracy in the digital realm, addressing concerns of plutocratic influence in governance. The token house is already present in platforms like Twitter, where Elon Musk's potential ownership represents significant control. However, the Optimism Collective's vision goes beyond token-based governance, incorporating individual user votes to make decisions for the community. This unique approach could potentially export governance styles from crypto to web 2, leading to a more transparent and equitable digital society. Ethereum, as a platform, is seen as a crucial step towards implementing and testing this innovative governance model. Carl's infectious optimism for Ethereum has attracted many, including the speaker, to believe in the potential of this vision.
Two-pronged approach of Optimism: Fungible and Soul-bound tokens: Optimism balances short-term and long-term incentives through freely tradable fungible tokens and unique soul-bound NFTs. The Optimism Foundation plays a crucial role in organizing governance and funding external teams to build infrastructure.
Optimism, a scalability solution for Ethereum, is exploring two distinct token models to balance short-term and long-term incentives within its ecosystem. On one hand, there are freely tradable, fungible tokens that can be found on decentralized exchanges (DEXs) and have market prices. On the other hand, there are soul-bound, non-fungible tokens (NFTs) that are unique to specific Ethereum addresses and cannot be transferred or sold. The Optimism Foundation, a steward of the community, plays a crucial role in organizing governance experiments and building up the ecosystem. It acts as a bridge to a fully decentralized system, funding external teams to create additional infrastructure pillars. To become a citizen in the Citizen House of Optimism and receive a soul-bound NFT, individuals must receive one directly from the Optimism Foundation. This NFT is unique to each Ethereum address and cannot be transferred or sold, creating a strong connection between the individual and the Optimism community. This two-pronged approach aims to align short-term profit-driven token holders with long-term stakeholders who have invested time, energy, and reputation in the protocol, fostering a more sustainable and successful ecosystem.
Optimism's experiment with citizenship in opcos: Optimism is exploring the concept of citizenship within its opcos, distributing soul-bound NFTs to active community members, and plans to expand into privacy-preserving identity systems.
Optimism, a layer 2 scaling solution on Ethereum, is experimenting with the concept of "citizenship" within its optimism communities, or opcos. This involves allowing active members of these communities to receive soul-bound NFTs, representing citizenship, which could eventually grow into large-scale, privacy-preserving identity systems. The distribution of citizenship and the recognition of individuals is a complex problem in crypto, and Optimism plans to start with a "seed trust" and grow it over time. Each project on Optimism will determine how to distribute citizenship and tokens based on their specific needs. This is part of a larger movement towards decentralized identity systems on Ethereum, which will allow for community-led, neutral token distributions.
Transition to Decentralization: Optimism Foundation and OP Labs: Optimism is transitioning to a more decentralized structure with the Optimism Foundation focusing on governance, grant making, and direction setting, while OP Labs focuses on engineering and protocol development. This change aims to reach a decentralized state similar to MakerDAO.
The Optimism ecosystem is undergoing a transition towards decentralization, with the Optimism Public Benefits Corporation (OPBC) splitting responsibilities with the newly formed Optimism Foundation and OP Labs. The Optimism Foundation, led by Jing Tan and Ben Jones along with other community members, will focus on high-level direction setting, governance, and grant making. OP Labs, formerly the Optimism Public Benefits Corporation, will focus on the engineering roadmap and direction of the protocol, with Carl and Liam Horne leading the team. This separation allows for a more decentralized structure, with the eventual goal of reaching a decentralized state similar to MakerDAO. The Optimism Token House represents the on-chain version of this decentralized structure, which will eventually morph into the Optimism Collective's Citizen House. The protocol experts, who are essential to the development of the protocol, will remain with OP Labs. This transition towards decentralization is a significant step in the growth and sustainability of the Optimism ecosystem.
Decentralizing Optimism ecosystem and supporting Ethereum protocols: Optimism team plans to distribute public goods funding to Ethereum protocol developers, encourage decentralized protocol development, and announced the Optimism token with future airdrops. They also discussed essential tools for the bankless lifestyle, such as Aave, Arbitrum, and Ledger wallets.
The Optimism team is working towards decentralizing the Optimism ecosystem by encouraging protocol development beyond a single organization and distributing public goods funding retroactively to those building important Ethereum protocols, not just OP Labs. This approach aligns with their focus on EVM Equivalents and aims to make the Optimism stack accessible to anyone participating in the Ethereum stack at large. Another exciting topic discussed was the Optimism token, including its distribution, name, and future airdrops. Airdrop 1 was announced during the podcast, but there are plans for more airdrops in the future. Additionally, the team discussed various projects and tools that support the bankless lifestyle, such as Aave, Arbitrum, and Ledger hardware wallets. These tools offer features like low gas fees, increased speed, and security, making them essential for anyone looking to take control of their crypto assets. In summary, the Optimism team's focus on decentralization and the distribution of public goods funding, along with the announcement of the Optimism token and the mention of various supporting tools, highlights their commitment to building a more accessible and decentralized Ethereum ecosystem.
Optimism's Inclusive Token Airdrop: Optimism distributed tokens fairly to various Ethereum users, rewarding repeat users, DAO voters, multisig signers, Gitcoin donors, and those who bridge to other layer 2 solutions, aiming to seed governance pool with engaged individuals.
The Optimism team aimed to make their token airdrop fair and inclusive by distributing tokens to various categories of Ethereum users, including Optimism users, repeat Optimism users, Ethereum users who voted in DAOs, multisig signers, and Gitcoin donors. Those who fell into multiple categories received additional bonuses. The airdrop also served to seed the governance pool with individuals who care about scalability, Ethereum, and Optimism's values. The team made an effort to include those who felt priced out of Ethereum by rewarding users who bridge to other layer 2 solutions.
Optimism distributes governance tokens through airdrops: Optimism distributes governance tokens through airdrops to create a community of engaged citizens, with 5% distributed so far and 14% remaining for future distributions, depending on project performance and community engagement.
The Optimism project, an Ethereum Layer 2 scaling solution, is distributing its governance tokens through various means, including airdrops to users. The team is considering the allocation of future airdrops carefully, as the tokens represent ownership in the protocol rather than an instrument for speculation. The goal is to create a community of engaged citizens who care about the protocol. So far, 5% of the total token supply has been airdropped, with 14% remaining for future distributions. The allocation of future airdrops will depend on various factors, including project performance and community engagement. The team is focused on iteration and improving the protocol, rather than setting a specific timeline for future airdrops. The goal is to distribute tokens to new entrants and those who have contributed positively to the ecosystem. The team is also working to prevent bot behavior and encourage organic contributions. The Optimism team aims to create a diverse governance structure with multiple mechanisms for distributing tokens. The team acknowledges the impact of past airdrops, such as the Uniswap airdrop, on the crypto space, and is working to ensure a more equitable distribution of tokens in the future.
Creating a new form of internet ownership and governance through public goods: The Optimism project distributes tokens for user airdrop, core contributors, retroactive public goods funding, and an ecosystem fund, with a focus on incentivizing growth and creating profitable public goods through retroactive funding.
The Optimism project is a community-driven initiative aimed at creating a new form of internet ownership and governance through the creation of public goods. The project's token distribution includes 19% for user airdrop, 19% for core contributors (Optimism team members and employees), 20% for retroactive public goods funding, and 25% for the ecosystem fund. The ecosystem fund is primarily focused on incentivizing growth on the network, with a portion going towards the Optimism Foundation for business development, governance systems, and seeding new projects on the platform. The project's unique selling point is its commitment to open-source everything and making the creation of public goods profitable through a model called retroactive public goods funding. The retroactive public goods funding and EVM equivalents will be discussed in more detail in future episodes.
Retroactive public goods funding: Investing in the future for profit: Optimism introduces a new funding model allowing investors to support public goods projects, ensuring profit based on positive impact, and enabling a marketplace to determine project value.
Optimism is pioneering a new approach to public goods funding called retroactive public goods funding, where investors can "chuck money into the future" to assure builders that they will be funded for their public goods projects. This model aims to address the challenges of centralized grant allocation and prediction by allowing a marketplace to determine which projects deserve funding based on their impact on the ecosystem. The goal is to create a world where positive impact leads to profit for individuals, fostering a reciprocal and collaborative environment for everyone's benefit.
Retroactive public goods funding in Web 3: Retro PGF incentivizes innovation and talent in public goods sector by providing an exit for not-for-profit projects, funded by demand for block space on optimistic rollups, aligning with Web 3 ethos.
Retroactive public goods funding (retro PGF) in Web 3 can be a game-changer for investing in non-profit projects and creating sustainable public goods. This mechanism, which is not a new concept, aims to provide an exit for not-for-profit projects, similar to how venture capital works. By doing so, it incentivizes innovation and talent recruitment in the public goods sector, redirecting the upside opportunities of the crypto world towards a more sustainable future. The demand for block space on optimistic rollups like Optimism can fund these public goods, creating a positive feedback loop that makes the layer 2 ecosystem more attractive. This approach aligns with the Web 3 ethos, where most technologies are built by open-source teams, and fairness is a priority. By incentivizing public goods funding, we can create a more pleasant and innovative ecosystem, similar to how well-funded infrastructure in nations enhances their development.
Optimism's virtuous cycle of funding public goods: Optimism's MEVA mechanism funds public goods sustainably, contributing to a thriving L2 ecosystem and maintaining EVM equivalence with Ethereum L1.
Optimism, a layer 2 scaling solution on Ethereum, is creating a virtuous cycle where more fees generated from optimistic rollups can fund public goods on the Optimism network. This is facilitated through Mechanistic Economic Value Ac capture (MEVA), which is not equivalent to users being sandwiched to fund public goods. Instead, the goal is to create a sustainable L2 ecosystem where block space is used for good, not extraction. Optimism is also striving for EVM equivalence, meaning the values and functionalities of Ethereum L1 are bleeding into L2, making it easily transferable and beneficial for the entire Ethereum ecosystem. This progressive journey towards EVM equivalence started with Plasma, then rollups, and now Optimism is contributing back to the Ethereum public good by staying EVM equivalent.
EIP 4844: A New Proposal to Reduce Ethereum Roll-up Costs: EIP 4844, led by Optimism collective, aims to reduce Ethereum roll-up costs by two orders of magnitude, benefiting all roll-ups, and is designed by Vitalik Buterin for minimal impact on Ethereum's governance process.
Ethereum's Optimism collective is working on EIP 4844, a new Ethereum Improvement Proposal aimed at significantly reducing call data costs and roll-up costs. This public good project, which is being written in an EVM equivalent codebase, will benefit all roll-ups, including Optimistic and ZK-style ones. The collective has been advocating for individual rights and the collective good by writing open-source, forkable, and privacy-preserving software. EIP 4844, designed by Vitalik Buterin to be minimal, is expected to contribute to lowering fees by two orders of magnitude, from dollars to cents. The team is contributing by building a prototype, proving it works, and getting it audited to ensure a smooth integration into Ethereum's governance process. The team's refreshing perspective on the token house and capital house as a plutocracy in the decentralized governance narrative highlights their commitment to transparency and addressing the power dynamics within the ecosystem.
Optimism Project's Evolution and Focus: The Optimism project is evolving, focusing on distributing responsibilities between Citizens' and Token Houses, improving security and decentralization, and preparing for AirDrop 1 in Q2. Excited about potential interactions with other DAOs and Ethereum's future as a layer 2 solution.
The Optimism project, which aims to make Ethereum more scalable and accessible, is constantly evolving. The team is working on distributing responsibilities between two houses - the Citizens' House and the Token House - and plans to iterate on these parameters. The AirDrop 1 distribution is expected to happen in Q2, but the team is focused on making the protocol more secure, decentralized, and user-friendly. Additionally, there's excitement about the potential interactions between the Optimism Collective's governance and other DAOs and communities within and beyond Ethereum. The technical path to decentralization is also being pursued. Overall, the team remains optimistic about the future of Ethereum and the potential for layer 2 solutions to address some of the world's biggest problems.
Join the Optimism project as an eligible citizen and attend a Twitter Spaces event: Listeners can engage with Optimism by checking eligibility for an airdrop and participating in a Twitter Spaces event, while the hosts, as advisors, are enthusiastic about the project's alignment with their values but emphasize potential risks in crypto and DeFi investments.
Listeners of the Baked List podcast can get involved in the Optimism project by checking their eligibility for an airdrop and becoming an optimism citizen. The Optimism team will also be hosting a Twitter Spaces event 30 minutes after the show. As advisors on the project, hosts Dave and Joel are excited about Optimism's alignment with their values, but remind listeners that crypto, DeFi, and Ethereum involve risks, and investors could potentially lose their investments. The hosts encourage listeners to join them on the "bankless journey" as they explore the frontier of Layer 2 solutions on the Ethereum network. Additionally, there will be more Bankless content on EVM equivalents coming up this week.
