• Optimism integrated the Canto Republic’s CSR methodology into its protocol in order to incentivize developers and NFT creators.
• This led to a decline in daily active users, resulting in a drop in overall revenue for the protocol.
• The health of the OP token also suffered, with declining volume and network growth.
Optimism Incorporates CSR Methodology
Optimism has integrated Canto Republic’s CSR (Contract Secured Revenue) methodology into its protocol, as was confirmed by an OP Stack developer on 13 February. This will incentivize developers and NFT creators, potentially leading to more development on the layer-2 solution and increased revenue.
Decline in Daily Active Users
The implementation of CSR has not been enough to spark interest in the protocol yet, with daily active users decreasing by 39% over the last month. Additionally, revenue generated by Optimism also fell by 26.7%, indicating that there is still work to be done to increase activity on the platform.
Impact on OP Token
The lack of activity on Optimism has caused a decline in velocity of OP tokens, meaning traders are trading less frequently than before. Volume for OP has fallen from 400 million to 250 million during this time as well. Network growth for OP has also gone down, showing little interest from new addresses at its current price point.
It is yet unclear whether developments on Optimism will help reinvigorate interest in the OP token going forward. Despite this uncertainty though, it is clear that further development needs to be done if Optimism wants to reach its full potential and generate more activity and revenue on its platform.
In conclusion, Optimism’s integration of Canto Republic’s CSR methodology is a step towards incentivizing developers and NFT creators so as to attract more attention from them and increase overall usage of the protocol. However, this has not led to an increase in daily active users or revenue so far, leading to a decline in health of the OP token as well due to falling velocity and network growth figures. It remains uncertain whether these developments will pay off for Optimism eventually or not; only time will tell if these efforts can bring about renewed interest in their platform or not