Initial Phase 0 cycle-1 Proposal Gelato (passed):
We would like to share an update with the community since receiving the OP tokens as part of the Phase 0 proposal. In the following section, we will provide a short summary on the progress made, the impact that the grant has had on our network, and our plans for the future.
Gelato is on a mission to become the decentralized backend of web3 with the aim to help projects outsource, scale and decentralize their entire web3 backend stack. Using Gelato, web3 projects can augment their smart contract applications by making them a) automated, b) gasless and c) off-chain aware.
During Phase 0, Gelato was allocated 300,000 OP tokens to support projects by covering their Executor fees on Optimism. This is done by incentivizing Node Operators to execute their tasks. Additionally, a grant program was established to encourage builders to join the Optimism ecosystem.
This post summarises what has been done and achieved thus far:
Usage of $OP & Results:
We have already distributed the first batch of rewards for Gelato Executors as outlined in our Phase 0 Proposal. As a reminder, Gelato utilizes OP incentives to reward Executors for executing transactions on behalf of dApps on Optimism. In order to do so, Executors need to have ETH to pay for transaction gas fees. By using the OP grant, Gelato is covering these fees, so dApps do not have to provide incentives to Gelato Node operators themselves. To accomplish this, we had to distribute a portion of the grant to the approved Executors in ETH, as seen in this transaction:
Note: We have to swap 48k OP to ETH as the network token to pay for gas is still ETH, which is what Executors need to execute transactions on behalf of Optimism projects.
Gelato/OP Builder Bounties
We also started a grant initiative which enables projects building on top of Gelato and Optimism to receive parts of the OP incentives for driving more transactions on Gelato & Optimism which was outlined in Part 2 of our grant proposal. For more information, see our governance forum post or tweet on our company twitter account regarding the OP x Gelato grant.
Gelato executed over 72,000 transactions on Optimism last year.
Recently we have seen a very steep growth in these transaction numbers. In the past 7 days, Optimism transactions are the third highest, right after BNB and Polygon.
We have seen a steady increase in new projects that started using Gelato on Optimism. Some examples include Yearn, Synthetix, Ripae and Lemma Finance.
We conducted joint marketing events like e.g. a Discord space with Kelvin from OPLabs which was awesome.
Optimism Labs started using Gelato themselves to automate topping up sequencer nodes before they can run out of ETH balance.
Synthetix utilizes Gelato on Optimism to automate the claiming of SNX staking rewards.
Growth in weekly Gelato transaction executions on Optimism has been accelerating significantly since November 2022:
There are 252,000 $OP tokens remaining to be distributed, 50,000 of which will be paid out to projects building on Optimism over the next months as part of the OP Builder Bounties program.
In Q1 2023, we will be launching our off-chain automation service, which will enable projects to automate transactions using off-chain data and computation. This service is expected to be significantly more resource intensive, and therefore we anticipate that more frequent OP distributions to Executor operators will be necessary to cover their costs.
We are planning on requesting additional OP tokens to be distributed to Gelato in the future.
Furthermore, we have already received many applications for our community grant program and if demand and quality of submissions permit, we would also like to extend the grant program. The additional tokens will be used as part of the grant process to support more projects and developers. This will ensure that there is a strong incentive for projects to build on top of Gelato, specifically on Optimism, and to participate in the growth of the network.
We are confident that this additional support will enable us to continue to drive innovation in the ecosystem and empower developers to build on Optimism.
We invite any feedback or questions on what has been done so far!
The Gelato Team