On August 4, according to Binance data, the token OP of the Ethereum L2 project Optimism once rose to 2.243 USDT this morning, and is now at 2.075 USDT, with a 24-hour increase of 38.3%.
Under the circumstance of the overall narrow fluctuation of the crypto market today, the OP skyrocketed in a short period of time. What is the reason? Based on Odaily Planet Daily’s comprehensive information and in-depth investigation, we believe that the skyrocketing OP price is due to its official announcement on August 3 that the major technological progress of “Bedrock” has an impact on the token economy.
On August 3, Optimism officially announced that it will release a Rollup called “Bedrock” in the fourth quarter of this year, which includes a model that will change the current Optimism’s protocol basis and Rollup architecture.
Different from the technical progress of other Rollup projects, Bedrock is not an upgrade of the Optimism client, but a brand new Rollup that combines the existing technologies of ZK and OP. After the development of Bedrock is completed, the ecology on Optimism will migrate to Bedrock.
The immediate benefits that Bedrock brings to the network include: 4x reduction in L1 to L2 deposit times, ~20% reduction in the cost of submitting data to L1, difference from Geth reduced to ~500 lines of code, support for any number of alternative proof systems (including ZK).
In terms of technical architecture design, Bedrock is similar to the merged Ethereum, with a separate consensus layer and execution layer.
This major technological progress really stimulates the OP token price, essentially because Bedrock promotes the decentralization of the Optimism sorter, which in turn brings staking income to the OP token. Below, let us step by step derivation.
Let’s briefly introduce the sorter mechanism on Optimism and its source of income – MEVA.
Optimism’s sorter is similar to miners/nodes on L1, and has the power to sort transactions. The sorter can choose to execute transactions with higher gas prices first to obtain additional profit, which is called MEV (Maximal/Miner Extractable Value Maximum). Extractable value), the auction of sorting rights is called MEVA (Maximal/Minter Extractable Value Auction). Optimism has the only ordering power due to the centralized operation of the orderer, and thus receives all MEVA revenue.
And Optimism’s technical documentation mentions a decentralized sorter. This means that if the decentralization of the orderer is promoted and a new consensus mechanism (such as PoS) is introduced, the MEVA revenue will be given to the orderer and token pledgers. Under this expectation, OP can not only be used to participate in governance voting, but also can be used by holders to pledge to nodes to obtain MEV/MEVA income generated by the protocol.
Currently, Optimism earns gas (MEVA) revenue through a centralized sorter. After the decentralization of the sequencer, the monthly gas revenue of $7 million will no longer flow to the Optimism team, but will be distributed to the sequencer and token pledgers. For token pledgers, if they pledge OP to obtain protocol income, the P/E ratio of OP will reach 5.12. At present, the circulating supply of OP is about 215 million, the token price is 2.02 USDT, the market value is 434 million US dollars, the annual income of Optimism gas is about 84 million US dollars, and the annual rate of return is 19.3%, which is very impressive.
Regarding the planning of the decentralization of the sorter, the official proposed two stages in the technical document.
The first step is that there is still only one sorter, the precise mechanism has not yet been finalized, but will involve economic mechanisms and governance mechanisms. The second step is to support multiple concurrent sequencers, which is achieved through standard BFT consensus. The consensus mechanism can refer to the PoS mechanism, but currently it cannot be implemented on the Optimism of the centralized operation sequencer, and it has to rely on a new consensus network – this is Bedrock. On Bedrock’s new consensus and basic protocol, the sequencer To achieve decentralization, and the protocol revenue will be given to nodes and token pledgers.
Bedrock is in the transition phase between these two steps, laying the technical foundation for the second step.
Optimism also talked about its decentralization route in its future plan “Our Pragmatic Path to Decentralization” in March this year.
The road ahead consists of five steps: forming a governance body, releasing Bedrock, enabling multi-client architecture, incentivizing/supporting the creation of alternative clients, sending multi-client proof contracts, and eliminating Optimism’s centralized upgrade key.
Considering the difficulty of development, it takes the most time for Optimism to complete the development of a new Rollup—Bedrock, so it can be considered that Bedrock is a key node on Optimism’s decentralization route.
As a brand-new Rollup, Bedrock will establish a new protocol standard and consensus mechanism for Optimism, which will also be the technical basis for Optimism’s decentralized operation sequencer. Under the mechanism of decentralized operation of the sequencer, MEVA/gas revenue will be given to the sequencer and token pledgers. OP can not only be used to participate in governance voting, but also can be used by holders to pledge to nodes to share the gas income generated by the agreement. So, Optimism increases revenue expectations for stakers, and it’s no surprise that OP prices go up.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/an-article-to-understand-the-reasons-behind-the-surge-in-op/
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