Optimism is a Layer 2 scalability solution for Ethereum that uses optimistic rollups to achieve higher throughput and lower transaction costs. The native token for Optimism is OP, and it serves several key functions in the Optimism ecosystem:

Governance: The OP token is used for governance purposes. OP token holders can participate in decision-making processes regarding protocol upgrades, resource allocation, and other critical changes to the Optimism network.

Transaction Fees: Similar to Ethereum’s ETH, OP tokens can be used to pay transaction fees on the Optimism network. This includes fees for deploying smart contracts and executing transactions.

Ecosystem Support: OP tokens are used to fund and incentivize projects and developers working on the Optimism platform.

By fulfilling these roles, the OP token is an integral part of the operation, security, and governance of the Optimism network, which promotes its adoption and utility within the broader Ethereum ecosystem.