A Whooping 56% Of OP Max Supply Not Assigned, What Does This Mean?

Dalmas Ngetich

1 year ago

2 mins read

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According to Token Unlocks, a platform that tracks upcoming unlocking events, 56% of all the OP token maximum supply is in the to-be-discussed (TBD) allocation, meaning the community is yet to vote and determine where these tokens will be assigned to in the coming weeks or months.

This news is a curious development, especially for OP Mainnet, the team behind one of the most popular Ethereum layer-2 scaling solutions, and OP token holders.

Billions Of OP Not Assigned

Token Unlocks notes that roughly 2.4 billion OP, representing 55% of the max supply, remains under the TBD allocation. So far, over 831 million OP, or slightly above 19% of the max supply, have been unlocked.

OP TBD allocation | Source: Token Unlocks

This revelation also comes when OP prices have been trending higher, breezing past crucial resistance levels. At spot rates, OP is changing hands above September and October highs, temporarily retesting October highs. The bull bar of November 10 anchors the current leg up since it was accompanied by relatively high trading volume.

OP price trending upwards on the daily chart | Source: OPUSDT on Binance, TradingView

Token Unlocks defines a TBD allocation as not assigned a release timing but will be subject to community voting. These tokens can be distributed for governance, Retroactive Public Goods Funding (RetroGPF), ecosystem funding, moved to advisers or partners, and much more.

RetroGPF is a funding mechanism that allows the protocol to support projects building solutions on its general-purpose layer-2 platform. Since it is retroactive, projects or developers don’t have to apply for funding in advance.

Usually, token unlocking releases coins initially locked or vested for a given time. Projects tend to employ this tactic to align the incentives of investors and that of the team. This also concurrently prevents early adopters from mass selling the coin, driving prices lower. Even so, since all specified unlocks are done publicly, transparency allows investors or traders to make informed decisions.

What Will Happen To OP Prices?

For the token’s Mainnet’s case, a big chunk of the max supply remains unassigned at spot rates, which is, as it is, supportive of prices. However, once these tokens are voted for, and the community decides the portion of the maximum supply that can, for instance, be distributed to advisers or used to fund ecosystem projects, then there is a tendency for prices to fall as the unlock date approaches.

OP Mainnet market share | Source: L2Beat

According to L2Beat, OP Mainnet is the second largest layer-2 scaling solution for Ethereum after Arbitrum One. OP Mainnet has a total value locked (TVL) of $3.39 billion, commanding a market share of 25%. Meanwhile, Base, a competitor backed by Coinbase, is third with a TVL of $600 million.

Feature image from Canva, chart from TradingView

Dalmas Ngetich

Dalmas, a seasoned crypto reporter, brings a unique perspective to the industry. His specialization in NFTs, blockchain, DeFi, and blockchain news for NewsBTC, combined with a background in mechanical engineering and over a decade of experience in journalism, has allowed him to craft over 10,000 news and feature articles over the past eight years. His diverse range of topics, including technology, Forex, and finance, reflects his comprehensive understanding of the crypto landscape.

His technical expertise and analytical skills have been recognized and featured by leading news outlets such as Investing.com, CoinTelegraph, Entrepreneur, Forbes, and other authority sites. Notably, he broke key news, including the Ripple and MoneyGram partnership, cementing his position as a thought leader in crypto.
The news exploded. Over 100,000 people devoured this meticulously crafted report, from seasoned investors to curious newcomers. His analysis wasn't just dry facts and figures; it crackled with insight, dissecting the implications of the partnership and its potential impact on the future of finance.

His deep understanding of the financial markets, technological advancements, and blockchain developments has made him a respected voice in the industry.

Dalmas is also the founder of BTC-Pulse, a crypto news site, further demonstrating his commitment to the field. He firmly believes that DeFi and NFTs are here to stay and will continue to drive financial inclusion.

Coming from Nairobi, Kenya, it is easy to see the source of his inspiration: Across Africa, millions lack access to traditional banks. Remote villages, limited documentation, and high minimum balances create insurmountable barriers.

DeFi, not just Maker or Aave, for example, but think of Bitcoin and USDT, cuts out the middleman. Forget banks with their limitations.
Even so, DeFi isn't a magic solution. The continent still struggles with reliable internet access, and educational campaigns highlighting the benefits of this wonderful solution are insufficient. Moreover, even for those interested, understanding DeFi can look like learning a new language.

Dalmas is here to help make the tech easy to understand and digestible, even for beginners.
The story of DeFi in Africa is still being written. Challenges abound, but the promise of a more inclusive financial future is a powerful motivator. With innovation and collaboration, Dalmas firmly believes that DeFi could become the key to unlocking Africa's full economic potential.
This possibility and its immense value motivate Dalmas to continue breaking key DeFi innovations and more across the globe. His engineering background further enhances his ability to deliver well-thought-out pieces that blend technical insight with clear, impactful reporting.

Beyond his professional achievements, Dalmas is deeply passionate about technology and politics. Policies drive adoption, and being at the forefront and keeping up with how they evolve is crucial for the sphere to mature.

When Dalmas is not closely monitoring the latest crypto events, he can be found in nature, exploring the picturesque countryside, and traveling with his family and friends. His love for adventure and discovery perfectly complements his investigative and reporting skills.
You can connect with Dalmas on X: @Dalmas_Ngetich, or contact him on Telegram @Dalmas_Ngetich.

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