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Kraken is building a new Layer-2 network called Ink using Optimism’s OP Stack framework
Optimism Foundation provided Kraken with 25M OP tokens (worth ~$42.5M currently)
The grant includes 5M OP for engineering and 20M OP tied to transaction milestones
Kraken joins other major players like Coinbase, Sony, and Uniswap in Optimism’s “Superchain” ecosystem
The deal was finalized in early 2024 when tokens were worth around $100M
In a newly revealed deal, the Optimism Foundation has granted cryptocurrency exchange Kraken 25 million OP tokens to build on its blockchain framework. The tokens, currently valued at approximately $42.5 million, were part of an agreement finalized in early 2024 when their value was close to $100 million.
The partnership became public after Kraken announced its plans to launch Ink, a new layer-2 network built on Optimism’s OP Stack framework. The deal structure includes two main components: 5 million OP tokens dedicated to engineering efforts, and 20 million tokens tied to transaction milestone achievements.
Ryan Wyatt, Chief Growth Officer at the Optimism Foundation, explained the rationale behind the token distribution on social media. “The grant includes 5M OP to help fund the engineering efforts for Ink, and 20M for massive transaction milestones to drive fees to the Collective,” Wyatt posted on X.
According to Andrew Koller, founder of Ink, the grant amount aligns with similar agreements made with other Superchain participants. “It was actually Optimism that proposed that number first, and it was very in line with what other Superchain participants have gotten,” Koller stated in an interview.
The token allocation will be distributed to Kraken through grants over time. When the deal was struck in January-February 2024, the OP token traded at around $3.99, reaching a peak of $4.06 on February 20. The current trading price hovers around $1.70.
Kraken’s entry into the Superchain ecosystem follows a pattern of major technology companies and crypto platforms building on Optimism’s technology. Coinbase launched its Base layer-2 network in August 2023, while electronics giant Sony announced plans for Soneium, and decentralized exchange Uniswap revealed its upcoming Unichain.
The grant structure for newer Superchain participants differs from earlier arrangements. Coinbase’s Base, as one of the first participants, secured terms allowing it to receive up to 2.75% of the OP token supply over six years. This amounts to potential access to 118 million OP tokens, based on the current total supply of 4.3 billion.
For recent additions like Kraken’s Ink, the focus has shifted to activity-based incentives. “It’s just like a time-lock thing. And after them [Base], I think all Superchain participants are really driving that around activity,” Koller explained.
The milestone-based structure ties token releases to monthly transaction volumes. Koller confirmed that different tranches of tokens unlock as specific transaction targets are met, following an initial distribution.
Paid partnerships between layer-2 projects and large companies have precedent in the blockchain industry. In 2022, Polygon provided Starbucks with $4 million in grants to develop an NFT-based loyalty program, though this project ended after 18 months.
The Optimism Foundation maintains transparency about these token allocations. Public documents show nearly 480 million OP tokens allocated to “Partner fund + seed fund + Unallocated,” with Wyatt promising increased transparency moving forward.
Kraken’s layer-2 network aims to serve as a general-use blockchain, similar to Coinbase’s Base. The exchange chose the Superchain to balance interoperability goals with Ethereum’s security benefits as a layer-1 blockchain.
Base’s success may have influenced Kraken’s decision to join the Superchain ecosystem. As of October 29, 2024, Base has accumulated $2.7 billion in total value locked (TVL), making it the largest Ethereum layer-2 by this metric, according to DefiLlama data.
The deal represents more than basic deployment costs, which typically run under $3,000 monthly. Wyatt emphasized Kraken’s broader commitments:
The Optimism Foundation continues to invest in expanding its developer ecosystem, with Wyatt stating, “The Collective is not going to stop investing in developers.”
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The post Kraken Received $42Million in OP Tokens to Build Layer-2 Network on Optimism appeared first on Panther AI.
Continue reading...
Optimism Foundation provided Kraken with 25M OP tokens (worth ~$42.5M currently)
The grant includes 5M OP for engineering and 20M OP tied to transaction milestones
Kraken joins other major players like Coinbase, Sony, and Uniswap in Optimism’s “Superchain” ecosystem
The deal was finalized in early 2024 when tokens were worth around $100M
In a newly revealed deal, the Optimism Foundation has granted cryptocurrency exchange Kraken 25 million OP tokens to build on its blockchain framework. The tokens, currently valued at approximately $42.5 million, were part of an agreement finalized in early 2024 when their value was close to $100 million.
The partnership became public after Kraken announced its plans to launch Ink, a new layer-2 network built on Optimism’s OP Stack framework. The deal structure includes two main components: 5 million OP tokens dedicated to engineering efforts, and 20 million tokens tied to transaction milestone achievements.
Ryan Wyatt, Chief Growth Officer at the Optimism Foundation, explained the rationale behind the token distribution on social media. “The grant includes 5M OP to help fund the engineering efforts for Ink, and 20M for massive transaction milestones to drive fees to the Collective,” Wyatt posted on X.
According to Andrew Koller, founder of Ink, the grant amount aligns with similar agreements made with other Superchain participants. “It was actually Optimism that proposed that number first, and it was very in line with what other Superchain participants have gotten,” Koller stated in an interview.
The token allocation will be distributed to Kraken through grants over time. When the deal was struck in January-February 2024, the OP token traded at around $3.99, reaching a peak of $4.06 on February 20. The current trading price hovers around $1.70.
Kraken’s entry into the Superchain ecosystem follows a pattern of major technology companies and crypto platforms building on Optimism’s technology. Coinbase launched its Base layer-2 network in August 2023, while electronics giant Sony announced plans for Soneium, and decentralized exchange Uniswap revealed its upcoming Unichain.
The grant structure for newer Superchain participants differs from earlier arrangements. Coinbase’s Base, as one of the first participants, secured terms allowing it to receive up to 2.75% of the OP token supply over six years. This amounts to potential access to 118 million OP tokens, based on the current total supply of 4.3 billion.
For recent additions like Kraken’s Ink, the focus has shifted to activity-based incentives. “It’s just like a time-lock thing. And after them [Base], I think all Superchain participants are really driving that around activity,” Koller explained.
The milestone-based structure ties token releases to monthly transaction volumes. Koller confirmed that different tranches of tokens unlock as specific transaction targets are met, following an initial distribution.
Paid partnerships between layer-2 projects and large companies have precedent in the blockchain industry. In 2022, Polygon provided Starbucks with $4 million in grants to develop an NFT-based loyalty program, though this project ended after 18 months.
The Optimism Foundation maintains transparency about these token allocations. Public documents show nearly 480 million OP tokens allocated to “Partner fund + seed fund + Unallocated,” with Wyatt promising increased transparency moving forward.
Kraken’s layer-2 network aims to serve as a general-use blockchain, similar to Coinbase’s Base. The exchange chose the Superchain to balance interoperability goals with Ethereum’s security benefits as a layer-1 blockchain.
Base’s success may have influenced Kraken’s decision to join the Superchain ecosystem. As of October 29, 2024, Base has accumulated $2.7 billion in total value locked (TVL), making it the largest Ethereum layer-2 by this metric, according to DefiLlama data.
The deal represents more than basic deployment costs, which typically run under $3,000 monthly. Wyatt emphasized Kraken’s broader commitments:
The Optimism Foundation continues to invest in expanding its developer ecosystem, with Wyatt stating, “The Collective is not going to stop investing in developers.”
Source link
The post Kraken Received $42Million in OP Tokens to Build Layer-2 Network on Optimism appeared first on Panther AI.
Continue reading...