Thanks for the thoughtful feedback @Manugotsuka! We discussed these topics on the community call but since not everyone was able to attend, I’ll provide a summary here as well.
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We’ve proposed 50% of revenue based on analyses we did on trading volumes, the relative size / impact of other buyback programs, etc. 50% also allows us to continue accruing ETH to the treasury and retain optionality over future uses of that ETH. We did consider the full range of alternatives and landed on 50% as the starting point that best balanced near term impact with future adaptability.
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We have decided to hold the repurchased OP, rather than burn it, as it allows for the same optionality over future use. We could also burn OP without doing a buyback, so it’s not the burn that creates the connection between Superchain success and OP.
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100% agree with the need for transparency around OTC execution and the Foundation will make all relevant data public on a monthly basis. We agree that OTC is not the optimal long term execution mechanism; however, we do believe it is the optimal short term execution path (for reasons we discussed on the community call) and aim to transition this to an onchain mechanism within ~6 months. We’ve already taken the first step on this path with Protocol Upgrade 18.