Metaversal is a Bankless newsletter for weekly level-ups on NFTs, virtual worlds, & collectibles

Dear Bankless Nation,

Optimism is a layer two (L2) scaling solution that inherits Ethereum’s security while making Ethereum transactions rapid and inexpensive. 

I’ve been beating the Optimism + NFTs drum for a while not just because of the L2’s friendlier UX, but also because it’s the only scaling solution that currently offers full equivalence with the Ethereum Virtual Machine. 

DavidHoffman.eth 🔴_🔴 🦇🔊🏴 @TrustlessState

✨EVM equivalence✨ is the difference between scaling on Ethereum, and *scaling Ethereum itself* Defined: EVM equivalence is the complete alignment with the Ethereum Virtual Machine specification ✨EVM equivalence✨ blurs the line between when the L1 stops and the L2s begin

10:25 PM ∙ Apr 27, 2022

---

6Likes2Retweets

This complete compatibility with the EVM means NFT builders can 1-click deploy their dapps to Optimism while still enjoying all the L1 Ethereum tooling they know and love. 

Combine this advantage with how Optimism just became the first of the “big four” L2s (Arbitrum, Optimism, zkSync, and StarkNet) to unveil a native token, and we have big catalysts for blooming the Optimism NFT scene going forward.

That said, let’s dive into this week’s Optimism OP news and give you some things to look out for NFT-wise.

-WMP

🙏 Sponsor: Brave Wallet - the secure crypto wallet. No extension required.✨

Optimistic NFT surge

The Optimism Collective and OP

Optimism (✨🔴_🔴✨) @optimismPBC

Introducing the Optimism Collective:

5:12 PM ∙ Apr 26, 2022

---

5,312Likes1,557Retweets

On Apr. 26th, the Optimism team unveiled the Optimism Collective. 

Described as a “large-scale experiment in digital democratic governance,” the Optimism Collective will steer the Optimism ecosystem and will be governed across two houses: the Token House and the Citizens’ House. 

Optimism (✨🔴_🔴✨) @optimismPBC

The Optimism Collective will be governed co-equally by two houses: 🏛 The Citizens’ House 💰 The Token House Together, they will drive rapid, SUSTAINABLE growth in Optimism, Ethereum, and the new internet.

5:12 PM ∙ Apr 26, 2022

---

854Likes115Retweets

The Token House, which will be kickstarted by the first OP airdrop, will be composed of OP ERC20 token holders. These stakeholders are set to vote on protocol incentives, updates, and beyond. 

The Citizens’ House, which will also arrive later this year, will vote on public goods funding initiatives, and membership will be distributed via non-transferrable soulbound NFTs. 

Optimism (✨🔴_🔴✨) @optimismPBC

Purpose of the Collective: Produce strong public goods infrastructure for OP, increasing the utility of the L2, and creating a useful economy to build on. ⬆️Demand for OP blockspace = ⬆️Public goods funding = ⬆️Investments into more public goods Public goods are good 📈

5:13 PM ∙ Apr 26, 2022

---

343Likes23Retweets

Checking for OP eligibility

The first OP airdrop hasn’t taken place yet, though you can check your eligibility for the upcoming distribution. So if you’ve tried the Quixotic NFT marketplace or any other dapps on Optimism in recent times, see if you’ve qualified for this first round of OP.

Optimism (✨🔴_🔴✨) @optimismPBC

Over 250k addresses are eligible via a carefully thought out set of criteria, proportionally rewarding addresses for healthy use of the ecosystem. There is an overlap bonus for hitting 4 or more criteria. You can check eligibility for Airdrop #1 here: app.optimism.io/governance

5:13 PM ∙ Apr 26, 2022

---

1,478Likes456Retweets

More airdrop rounds are coming, too, so it’s not too late to experiment with the L2 and earn a spot for future allocations. Avoid scams in the meantime by tracking the Optimism team’s official comms so you’ll know when OP is officially live.

Collectable L2 announcement

NFTs on Optimism can be very inexpensive. For example, the Optimism team released their Optimism Collective Mirror post as Mirror’s first L2 NFTs, and they were mintable for less than $1 worth of gas. With further technical advances over time, look for these L2 NFT gas costs to drop even further. 

d.mirror.xyz 🪞 @Iiterature

Over the past few hours, 2,300+ NFTs were collected of @optimismPBC's $OP token announcement post. Collectors paid ~$0.60 in gas to mint the free NFT, 100x cheaper than on mainnet. L2 is here 😈 optimism.mirror.xyz/gQWKlrDqHzdKPs…

optimism.mirror.xyzIntroducing the Optimism CollectiveIt’s time for a new chapter. Scaling the technology alone is not enough. We have a duty to scale our values along with our networks. In pursuit of this mission, we are excited to announce the Optimism Collective.

8:56 PM ∙ Apr 26, 2022

---

229Likes27Retweets

OP isn’t bad for ETH

Simply put, Optimism’s efficiency and security stems from how the L2 batches and posts transaction data to Ethereum. The OP token will be a governance instrument for the Optimism Collective, whereas the Optimism L2 will continue to pay ETH fees to post its transactions to Ethereum.

him.eth @himgajria

People are failing to realise that OP is just a governance token for the Optimism Collective. It’s not taking away from Ethereum or Ether in any way. Transaction fees will continue to be paid in ETH.

11:56 AM ∙ Apr 27, 2022

---

186Likes14Retweets

So for instance, the Optimism L2 seeing more NFT activity would directly accrue value to Ethereum in contrast to alt-L1s that can silo value to themselves through native fee markets. On the flip side, it is something of an open question as to how OP is supposed to accrue value over time. 

The Optimism NFT surge

As you can imagine, the news of OP and further rounds of airdrops has led to a burst of activity on Optimism. According to L2BEAT, the total value locked (TVL) on Optimism surged by +16% over the past week.

Notably, this wasn’t just a generalized bridging surge as the activity boom has coincided with a huge spike of transactions in Optimism’s young NFT ecosystem. Per this Dune Analytics dashboard that tracks Quixotic by Michael Silberling, on April 27th the NFT marketplace recorded its best day yet for ETH volume, USD-denominated volume, number of NFT trades, and unique active addresses.

Demand for more NFT projects grows

dame.eth @damedoteth

need @manifoldxyz to let us deploy NFT contracts on @optimismPBC asap

12:55 PM ∙ Apr 27, 2022

As Mirror’s Optimism integration showed, NFT projects can offer very friendly UX by embracing Optimism in the here and now. So as buzz around this EVM-equivalent L2 increases and as NFT users continue to seek more affordable solutions, expect growing calls for popular L1 NFT projects to add support for Optimism.

Zooming out

Optimism’s full EVM equivalence and upcoming bridging advances will soon make it trivial to move and use NFTs between Optimism and Ethereum. 

hackworth (shadowy super coder) @0xhackworth

optimism alpha. looks like NFT bridging will be possible soon

github.comfeat: nft bridge between l1 and optimism (draft) by sam-goldman · Pull Request #2424 · ethereum-optimism/optimismThis is an initial proposal for an ERC721 bridge between L1 and Optimism. The issue describing this feature can be found here.

5:22 AM ∙ Apr 25, 2022

So as opposed to non-EVM NFTs on blockchains like Tezos and Solana which have technical idiosyncrasies, Optimism NFTs are effectively Ethereum NFTs and vice versa. This dynamic could have a force multiplier effect on the growth of the Optimism NFT scene going forward, since Ethereum NFTs continue to be perceived as the highest-quality and most desirable NFTs around.

Indeed, the more that Optimism NFTs come to be seen as interchangeable with, or indistinguishable from, Ethereum NFTs, the more a considerable Optimism NFT boom becomes likely in the months ahead in my opinion. Only time will tell for now.

DavidHoffman.eth 🔴_🔴 🦇🔊🏴 @TrustlessState

Just published "EVM Equivalence" on @BanklessHQ #Ethereum's network effects capped at DeFi Summer New L1s & L2s have emerged, but they've broken the EVM standard A new Cambrian explosion is ahead, but we need EVM equivalence to unlock it Thread!🧵👇 newsletter.banklesshq.com/p/evm-equivale…

10:25 PM ∙ Apr 27, 2022

---

99Likes28Retweets

Action steps

• 🎈 Check out Quixotic on Optimism

• 🔴 Read my latest Bankless tactic A Beginner’s Guide to Optimism

• 📺 Watch the Bankless’s State of the Nation on the Optimism Collective and OP to dive deeper:

Author Bio

William M. Peaster is a professional writer and creator of Metaversal—a Bankless newsletter focused on the emergence of NFTs in the cryptoeconomy. He’s also recently been contributing content to Bankless, JPG, and beyond!

Subscribe to Bankless. $22 per mo. Includes archive access, Inner Circle & Badge.

🙏Thanks to our sponsor

BRAVE WALLET

Brave Wallet: the secure crypto wallet, built directly into the browser.

Buy, store, send & swap assets. Manage NFTs. Connect other wallets & DApps. All from the security of the best privacy browser on the market. 

Ditch those risky extensions. It’s time to switch to Brave Wallet.

Not financial or tax advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This newsletter is not tax advice. Talk to your accountant. Do your own research.

Disclosure. From time-to-time I may add links in this newsletter to products I use. I may receive commission if you make a purchase through one of these links. Additionally, the Bankless writers hold crypto assets. See our investment disclosures here.