On OTC execution: We appreciate the community’s feedback and the thoughtful alternatives suggested. For the first iteration of buybacks, we recommend starting with OTC execution primarily for operational simplicity and reliability, allowing us to execute swaps cleanly without introducing additional smart contract risk or other complex dynamics during early rollout. OTC also enables better price discovery by accessing deeper liquidity than currently exists on OP Mainnet, while improving Optimism Mainnet liquidity is a core long-term goal. This helps reduce the impact of slippage that would ultimately reduce value to the ecosystem. We agree that onchain mechanisms such as DEX execution, Dutch auctions and Tip Jar claims offer strong transparency guarantees. In the meantime, all OTC trades will be reported publicly, either via stats.optimism.io or via the governance forum. The program is not designed to have any interaction whatsoever with existing private or employed OP holders: providers are being selected based on who can fill the Foundation’s operational, financial, and legal requirements. In short, starting with OTC gives us a pragmatic baseline while we work toward onchain execution and exploring the alternatives mentioned is very much part of that path. We’re happy to discuss any of the above in more detail on the upcoming community call on January 20nd.
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