Authors: @PGov, @Gonna.eth, @Wildmolasses, @Alisha
Update January 20th 2026: The budget board has finalized their recommendations for the OP budget reprice here: Proposed Midterm Adjustment for Seasons 8 and 9 Operating Budget
Summary: The leads of OP’s S8 Councils (M&M, GC, DAB, & Security Council) are writing to request a post S8, pre S9 repricing for council operating budgets. As mentioned in the recent Governance Update #11, it was noted that the Budget Board may consider a midpoint adjustment for all Council and Board budgets. Given the significant change in market conditions in the past six months since Season 8 budgets were approved in July 2025, we strongly support such a repricing and outline our reasoning below.
Background: When Season 8 & 9 council budgets were approved in July/August, many councils derived our calculations based on the OP/ETH exchange rate at that time to maintain parity with previous seasons. Specifically, the budgeting used a rate of about 1 ETH = 4,580 OP for Season 8. This approach ensured that each council’s OP allocation corresponded to roughly the same ETH value as in prior seasons, as our budgets were set in OP with the intent of keeping real value constant across seasons.
Between July 2025 and the end of December 2025, the price of OP has dropped by more than half relative to ETH.
| ETH/OP Rate (July 15) | 4,580 OP/1 ETH |
| ETH/OP Rate (December 24, end of S8) | 11,000 OP/ 1 ETH |
As of the end of Season 8 (December 24), 1 ETH is now ~11,000, meaning OP is far cheaper. Consequently, the OP amounts allocated for the councils now represent less than half of the originally intended value in ETH (and USD terms). This dramatic change was unforeseen and is beyond our control, but it directly impacts our ability to deliver on our mandates with the current funding level.
Collectively, the council leads request the Budget Board review Season 9 budgets to realign budgets in light of the current OP price. Without adjustment, each council’s effective budget is cut nearly in half, jeopardizing our ability to execute planned Season 9 programs and operations. All four councils have significant responsibilities – from grant funding and evaluation to security upgrades and developer outreach – which were scoped and approved with a certain funding level in mind. A 50% budget shortfall could force undesirable cutbacks in these mission-critical activities. We want to guarantee the resources originally promised are actually available to achieve our goals.
The stipends for council leads and members were set to be fair and competitive, based on their value in ETH (and dollars) at the time of proposal. Repricing is needed to ensure those serving the Collective aren’t unintentionally paid far less (in real terms) than was prior voted in. Adjusting the OP amounts will uphold the original compensation commitments and keep incentives aligned, despite the market volatility.
Across the board, councils have had scaled responsibilities (M&M pays for data analytics and grant hosting, the Security Council now secures multiple OP Chains, the Grants Council supports a growing number of projects, and the DAB oversees more upgrades and grant programs). These initiatives come with fixed workload and costs. If funding is effectively slashed mid-term, many of these efforts will be under-resourced and delayed. Repricing ensures we can carry out these initiatives to their full extent as promised, without compromising quality or scope due to budget shortfall.
Importantly, this course of action was anticipated and is in line with our community’s governance processes. In our original budget proposals, we explicitly noted that we would coordinate with the Foundation and the Budget Board for a reprice if market conditions changed significantly, which we believe has more than adequately happened. The official mid-season update likewise acknowledged that a midpoint budget adjustment might be proposed for the councils. We believe this request is neither unexpected nor without precedent.
Our Request: Concretely, we propose increasing the OP allocations for Season 9 to match the value that was originally intended when the budgets were passed. Since the ETH/OP ratio went from 4580 to now 11000, our request is in line with this ~140% change.
Using this reprice across the board, we are requesting:
| Original Budget | Repriced Budget | Additional Request | |
|---|---|---|---|
| M&M Council | 492,350 | 1,182,500 | 690,150 |
| Grants Council | 490,000 | 1,176,855 | 686,855 |
| Developer Advisory Board | 487,000 | 1,169,650 | 682,650 |
| Security Council | 757,220 | 1,818,650 | 1,061,430 |
| Total Additional Request: | 3,121,085 |
In total, the council leads are requesting 3,121,085 OP.
Together, we remain focused on delivering value to the Optimism community, and this adjustment will help ensure we have the stability to do so. We are all available to be reached out to with any questions or concerns, and we look forward to continuing to serve the Collective effectively.]