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Optimism [OP] adds this CSR method on its mainnet – the result could…
Posted:
| Last updated: July 31st, 2024
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- Optimism integrated the Canto Republic’s CSR methodology into its protocol.
- Incentivizing developers and NFT creators would increase developments and revenue.
In an update on 13 February, an Optimism [OP] developer confirmed that the protocol would incorporate Canto Republic’s CSR methodology into its protocol.
The OP Stack is about to make Ethereum contract development crazy again. Hard to explain until you've seen it. It's just stupid how powerful this thing is. The idea of getting CSR on Optimism Mainnet was what really got me. (quik thred) https://t.co/OeyUHUgdF3
— smartcontracts.eth (✨🔴_🔴✨) (@kelvinfichter) February 13, 2023
How much are 1,10,100 OP worth today?
The CSR (Contract Secured Revenue) awards contract creators based on gas fees percentage. With each transaction made on a creator’s smart contract, the developer would get some level of return on their investment. Moreover, CSR’s implementation will be done by creating a new L3 stack chain.
This would help the protocol in many ways. By incentivizing creators, new developers will be attracted to build on the layer-2 solution. This would lead to an increase in new smart contracts on the Optimism protocol.
These developments would also attract NFT creators to launch their tokens on Optimism. On that note, at press time, the protocol’s NFT market was not generating enough interest, as indicated by its declining number of NFT trades.
Source: Dune Analytics
The declining numbers caused the number of daily active users on the protocol to decline by 39% over the last month. This impacted the overall revenue generated by Optimism as well, which fell by 26.7% during the same period.
Source: token terminal
What was the impact on OP?
These factors affected the health of the OP token. For instance, the overall velocity of OP declined, implying that the frequency with which traders were trading OP had decreased materially. Another sign of waning activity was OP’s volume, which fell from 400 million to 250 million during the same period.
Read Optimism’s [OP] Price Prediction 2023-2024
Adding to that, Optimism’s network growth went down as well, suggesting that new addresses showed little interest in OP at its press time price.
Source: Santiment
It remains to be seen whether developments on the Optimism protocol will help reinvigorate interest in the OP token.
