5.4% of the total initial token supply (231,928,234 OP) will be distributed to Optimism projects and communities via the Governance Fund. During Season 2, projects can continue to submit forum proposals to request any amount of OP tokens from the Governance Fund. All Season 2 proposals must include a plan for how the tokens will incentivize sustainable growth on Optimism.
The purpose of the Governance Fund is to incentivize sustainable growth of projects and communities in the Optimism ecosystem. This does not mean that all grants must be incentive programs. The Token House is welcome to consider any and all proposals which would drive growth or address a gap in the Optimism ecosystem, including public goods projects.
However, it does mean that funding should come with an expectation of growth-related deliverables. It is not the intended purpose of the governance fund to retroactively fund public goods without an expectation of future work—there is a distinct OP allocation dedicated to this, which will be distributed via the Citizens House at a later date. You can read more about the total allocation of OP in the Allocations section of our Governance docs. If your project would be better served by our Partner Fund, please get in touch.
Proposals will be reviewed and voted on by OP token holders and their delegates using the process outlined in the Operating Manual.
To submit a proposal, follow the process outlined in the Operating Manual.
Author name and contact info (please provide a reliable point of contact for the project):
I understand that I will be required to provide additional KYC information to the Optimism Foundation to receive this grant: [Yes/No]
L2 recipient address:
Which Voting Cycle are you applying for?:
Grant category: (DeFi, NFT, Tooling, Other)
Is this proposal applicable to a specific committee? (If so, please link to committee)
Project description (please explain how your project works):
- Please include all other relevant links below:
Additional team member info (please link):
Please link to any previous projects the team has meaningfully contributed to:
Relevant usage metrics (TVL, transactions, volume, unique addresses, etc. Optimism metrics preferred; please link to public sources such as Dune Analytics, etc.):
Competitors, peers, or similar projects (please link):
Is/will this project be open sourced? Yes/No/In Future
Optimism native?: Yes/No
Date of deployment/expected deployment on Optimism:
Ecosystem Value Proposition:
- What is the problem statement this proposal hopes to solve for the Optimism ecosystem?
- How does your proposal offer a value proposition solving the above problem?
- Why will this solution be a source of growth for the Optimism ecosystem?
Has your project previously applied for an OP grant? If successful, please link to your previous grant proposal and provide a brief update on milestones achieved with the grant. If unsuccessful, and this is a resubmission, please specify how you have incorporated significant changes in accordance with feedback.
Number of OP tokens requested:
Did the project apply for or receive OP tokens through the Foundation Partner Fund?: Yes/No/In Process
If OP tokens were requested from the Foundation Partner Fund, what was the amount?:
How much will your project match in co-incentives? (not required but recommended, when applicable):
Proposal for token distribution:
- How will the OP tokens be distributed? (please include % allocated to different initiatives such as user rewards/marketing/liquidity mining. Please also include a justification as to why each of these initiatives align with the problem statement this proposal is solving.)
- Over what period of time will the tokens be distributed for each initiative? Shorter timelines are preferable to longer timelines. Shorter timelines (on the order of weeks) allow teams to quickly demonstrate achievement of milestones, better facilitating additional grants via subsequent proposals.
- Please list the milestones/KPIs you expect to achieve for each initiative, considering how each relates to incentivizing sustainable usage and liquidity on Optimism. Please keep in mind that progress towards these milestones/KPIs should be trackable.
- Why will incentivized users and liquidity on Optimism remain after incentives dry up?
Please provide any additional information that will facilitate accountability:(smart contracts addresses relevant to the proposal, relevant organizational wallet addresses, etc.)
The below restrictions may not map with 100% clarity onto all possible scenarios. In the spirit of governance minimization, the Optimism Foundation will not police the application of these rules. Instead, it is the directive of the Token House to apply these parameters consistent with the purpose of the Governance Fund: driving sustainable usage and engagement on Optimism (rather than simply providing teams with working capital or voting power).
OP received through the Governance Fund should not be sold by the grant recipient. This “no sale” rule:
- Includes the grant recipient, their affiliates and any other related persons. These persons cannot receive OP for the purpose of selling (or if the grant recipient knows they intend to sell) the tokens.
- Includes the direct exchange of OP for crypto or fiat, whether done publicly or privately. Think selling OP in exchange for fiat or crypto, regardless of whether done on a CEX, DEX, OTC desk, at your local park, or otherwise.
- Does not include using OP to incentivize usage. Providing OP as liquidity mining incentives is not restricted by these parameters.
The expectation is that token grants will not be self-delegated for use in governance. The primary purpose of these token grants is to incentivize sustainable usage and growth of the Optimism ecosystem. Accordingly, for partners interested in increasing their voting power, the preferred route is by encouraging users to delegate their rewards to your governance representatives. There is no hard restriction on self-delegation, but if you plan to delegate a portion or all of your grant tokens to your own protocol, or a closely affiliated party, this should be made clear in your grant proposal along with your reasoning.