Optimism

Introduction to Optimism

Optimism is an Ethereum Layer 2 scaling solution that has become foundational infrastructure for the broader rollup ecosystem. Through the open-source OP Stack, Optimism has enabled the creation of multiple major networks including Base (Coinbase), Mode, and Zora, all contributing to the “Superchain” vision of interoperable L2s.

Beyond technology, Optimism is distinguished by its commitment to public goods funding through retroactive grants. The protocol directs a portion of revenue to fund projects that benefit the Ethereum ecosystem, embodying a vision of sustainable open-source development.

The Optimism Vision

Superchain Concept

Optimism’s ambitious vision:

Interoperable L2s: Multiple rollups sharing standards OP Stack: Open-source rollup framework Shared Sequencing: Coordinated transaction ordering Cross-chain Messaging: Native communication between chains

Public Goods Philosophy

Optimism prioritizes ecosystem health:

• Retroactive public goods funding (RPGF)
• Open-source everything
• Revenue sharing with ecosystem
• Sustainable development model

How Optimism Works

Optimistic Rollup Architecture

Like other optimistic rollups:

Sequencer: Orders and batches transactions Data Availability: Posts data to Ethereum Fraud Proofs: Challenge period for invalid states EVM Equivalence: Same as Ethereum execution

Key Differences from Arbitrum

Aspect	Optimism	Arbitrum
VM	EVM equivalent	Nitro (custom)
Fraud Proofs	Single round	Multi-round
Focus	Superchain/infra	Applications
Revenue	Public goods	DAO treasury

Technical Specifications

Metric	Value
Block Time	2 seconds
Finality	~7 days (for withdrawals)
Gas Token	ETH
VM	EVM equivalent
Data Availability	Ethereum (blobs)
Sequencer	Currently centralized

The OP Stack

Modular Rollup Framework

Components include:

Execution Layer: EVM-equivalent processing Derivation Layer: Reconstructing L2 from L1 data Settlement Layer: L1 anchoring Data Availability: Posting transaction data Governance Layer: Protocol control

OP Stack Chains

Major networks using OP Stack:

• Base: Coinbase’s L2
• Mode: DeFi-focused L2
• Zora: NFT/creator L2
• Worldcoin: Identity network
• Many more: Growing ecosystem

The OP Token

Governance Utility

OP enables participation:

• Voting: Protocol upgrades
• Delegation: Representative governance
• Proposals: Submit changes
• Treasury: Fund allocation

Two-House Governance

Unique structure:

• Token House: OP holders vote
• Citizens’ House: Public goods funding decisions
• Bicameral system for balanced governance

Tokenomics

• Total Supply: 4.29 billion OP
• Airdrops: Multiple rounds to users
• Ecosystem Fund: Development grants
• RPGF: Retroactive funding rounds

Ecosystem Development

DeFi Protocols

Active DeFi ecosystem:

• Velodrome: Leading DEX
• Synthetix: Synthetic assets
• Aave: Lending protocol
• Uniswap: Major DEX

Superchain Partners

Chains contributing to ecosystem:

• Base revenue sharing
• Mode network
• Zora for NFTs
• Various L3s building on Optimism

Retroactive Public Goods Funding

How RPGF Works

1. Projects build valuable public goods
2. Citizens’ House evaluates impact
3. Retroactive rewards distributed
4. Incentivizes building before getting paid

RPGF Rounds

Multiple funding rounds:

• RPGF1, RPGF2, RPGF3 completed
• Millions distributed to projects
• Core infrastructure, education, tools funded
• Growing sophistication in evaluation

Competition and Market Position

vs. Arbitrum

Aspect	Optimism	Arbitrum
TVL	Lower	Higher
DeFi Focus	Less	More
Infra Focus	OP Stack	Applications
Governance	Bicameral	Token-based

Superchain Advantage

OP Stack adoption creates:

• Network effects
• Shared development costs
• Interoperability standards
• Revenue sharing from partners

Challenges and Criticism

TVL Competition

• Arbitrum has larger DeFi TVL
• Base growing faster
• Competition for liquidity

Centralization

Current limitations:

• Centralized sequencer
• Upgrade authority
• Limited fault proof deployment

Token Utility

Questions about OP value:

• Governance only (no gas use)
• Competition with native chains
• Value accrual mechanisms

Recent Developments

Fault Proofs

Finally live on mainnet:

• Permissionless challenging
• Reduced trust assumptions
• Critical milestone for security

Superchain Registry

Coordinating OP Stack chains:

• Standardized configurations
• Interoperability requirements
• Ecosystem coordination

Interop

Cross-chain messaging:

• Superchain message passing
• Shared sequencing exploration
• Asset transfers between chains

Future Roadmap

Development priorities include:

• Full Decentralization: Sequencer and governance
• Superchain Interop: Seamless cross-chain
• Plasma Mode: Alternative data availability
• Multi-Proof: Multiple proof systems
• ZK Integration: Hybrid rollup potential

Conclusion

Optimism has evolved from a single rollup into infrastructure powering a significant portion of Ethereum’s Layer 2 ecosystem. The OP Stack’s success in enabling Base, Mode, and others demonstrates the value of open-source, modular rollup design.

The public goods focus sets Optimism apart philosophically, attempting to solve the free-rider problem in open-source development. Whether this model creates sustainable funding for ecosystem growth remains an experiment worth watching.

For developers building on Ethereum L2s and for the ecosystem broadly, Optimism’s contributions extend well beyond its own network. The Superchain vision, if realized, could reshape how we think about blockchain interoperability and shared infrastructure.