Ethereum Layer 2 scaling solution Optimism is rethinking its strategy after years of helping other projects build networks on its technology. Now the company’s chief executive, Jing Wang, says that approach came at a high cost.

Optimism was designed to offer cheaper transactions just as Ethereum experienced rising gas fees around 2020-2021. Its OP Stack software has been used to launch chains like Coinbase’s Base and Kraken’s Ink, allowing them to build their own blockchains while remaining compatible with Ethereum.

But in an X post on Nov. 27, Wang said the team “did too much and focused too little,” pointing to over-hiring and a lack of strategy as market conditions shifted. She said the company has been “bathing in tactics for a long time” with partner chains, “without building the operating machinery to continue that momentum into a market that’s dramatically different today.”

To continue reading this as well as other DeFi and Web3 news, visit us at thedefiant.io