South Korea’s largest cryptocurrency exchange, Upbit, has partnered with the Optimism Foundation to build Giwa Chain, a new Ethereum-based Layer 2 blockchain network.

 

Giwa Chain, which will be built on Optimism’s open source OP Stack, will be the first of its kind built on the self-managed tier of Optimism’s OP Enterprise and stems from the growing need for exchanges to build their own blockchains.

 

 

While crypto exchanges using shared chains are not inherently problematic, issues arise as usage increases, making it difficult for these networks to handle the growing workloads of exchanges, including institutional transaction volumes, compliance requirements, and fee economics, which often compound as an exchange scales. For a global exchange like Upbit, which serves more than 13 million users and ranks among the top exchanges by spot trading volume, owning and managing its own blockchain is critical for performance and scalability.

 

By partnering with Optimism to build a self-managed chain, Upbit allows Optimism to manage key technical aspects of the chain’s infrastructure, including tooling and engineering support, while still retaining sovereignty over the chain’s control and overseeing key functions such as the primary sequencer, chain configuration, and operational authority.

 

“Operating our own Giwa Chain is a strategic move for Upbit. Our goal is to provide institutional and retail users with a level of performance and compliance consistent with our existing platform,” said Minseok Jung, Chief Operating Officer of Dunamu Inc.

 

“The Optimism Foundation’s self-managed tier provides a suitable framework, allowing us to maintain operational control while building on established infrastructure. This approach aligns with our requirements for scalability and oversight.”

 

Giwa Chain is currently live on testnet, with mainnet deployment to follow. Dunamu, the parent company of Upbit, has also signed a memorandum of understanding with the Optimism Foundation on May 4, outlining key aspects of Giwa Chain, including its architecture reviews, performance benchmarking, and security audits.

 

Crypto Exchanges Building Their Own Chains

There has been an increase in the number of cryptocurrency exchanges building their own layer 2 blockchains, with many doing so for improved infrastructural performance and to gain control over fees, transaction sequencing, user experience, and compliance.

 

The OP Stack has been instrumental in this development, with the Optimism Foundation stating that its OP Stack currently houses over 32 layer 2 blockchain networks, including Binance’s opBNB chain, Kraken’s Ink chain, Gate.io’s Gate Layer, and OKX’s X Layer.

 

Optimism Weighs OP Token Buybacks Using Half of Superchain Revenue

 

Optimism is considering a significant shift in how value flows back to its native token holders.

A new governance proposal would allocate 50 percent of all Superchain revenue toward regular buybacks of the OP token, marking one of the clearest attempts yet by a major Layer 2 ecosystem to directly link token economics with real network revenue.

If approved, the buybacks would begin as early as February and would be funded through sequencer fees generated across the Superchain, Optimism’s growing network of OP Stack based chains. The remaining revenue would continue to support protocol development, public goods funding, and ecosystem operations.

The proposal reflects a broader debate playing out across crypto: how networks should balance reinvestment with returning value to token holders.

 

Tying OP Closer to Network Activity

Optimism’s Superchain model pools revenue from multiple Layer 2 networks that use the OP Stack. These chains contribute a portion of their sequencer fees into a shared system, creating a steady revenue stream tied directly to transaction activity.

Under the new plan, half of that revenue would be used to purchase OP tokens on the open market. Those tokens would then be held by the Optimism treasury, where governance could later decide whether to burn them, redistribute them, or use them for future incentives.

Supporters of the proposal argue that buybacks would strengthen the relationship between Superchain usage and demand for OP. As more chains join the ecosystem and activity grows, buyback volumes could rise alongside revenue.

It is a notable shift for a project that has historically emphasized governance participation and public goods funding over direct token value capture.

 

A Strategic Pivot for the Superchain

Optimism has spent the past year expanding the Superchain, with more networks adopting the OP Stack and contributing fees back to the collective. That growth has made revenue allocation a more pressing question. Optimism shared that it has collected 5,868 ETH in revenue from the Superchain, all of which has flowed into a token-governed treasury.

Rather than committing all proceeds to grants or long term development, the Foundation appears to be signaling that token holders should benefit more directly from the ecosystem’s success.

At the same time, the proposal stops short of mandating token burns or fixed distributions. By returning bought tokens to the treasury, Optimism preserves flexibility while still introducing a market facing mechanism tied to revenue.

 

Governance Decision Ahead

Under the proposal, which is expected to go to a governance vote on January 22, Optimism would begin monthly OP token buybacks as early as February. The purchases would be funded by sequencer fee revenue generated across OP Stack based networks, including Coinbase’s Base, Uniswap’s Unichain, World’s World Chain, Sony’s Soneium, and other Superchain members.

Approval would make Optimism one of the more prominent Ethereum scaling projects to formalize buybacks as part of its economic model.

Whether the plan passes or not, the discussion highlights a shift in tone across crypto infrastructure projects. As networks mature and generate meaningful revenue, questions around sustainability, incentives, and value capture are becoming harder to avoid.

 

For Optimism, the vote could shape how the Superchain evolves from a technical scaling solution into a fully self sustaining economic system.

 

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