Ethereum Layer 2 scaling solution Optimism is preparing for a strategic pivot after its CEO, Jing Wang, offered a candid critique of the company’s recent direction. In a public statement, Wang admitted the team “did too much and focused too little,” teasing a new approach that will cater more directly to enterprise clients.

This change in focus follows a period where Optimism dedicated significant resources to helping other projects, like Coinbase’s Base and Kraken’s Ink, launch their own networks using its OP Stack software. While this strategy expanded its ecosystem, Wang suggested it came at a high cost, leading to over-hiring and a tactical approach that wasn’t sustainable in a rapidly changing market.

A New Focus Amidst Stiff Competition

According to Wang, the company had been “bathing in tactics for a long time” with its partner chains but failed to build the operational foundation needed for long-term momentum. She noted that despite cost-cutting measures, including staff reductions, competition from networks like Solana and the Stripe-backed Tempo is intensifying.

The new strategy will shift from simply helping launch new chains to providing enterprises with greater control over their own networks and economics. While specific details were not provided, Wang emphasized the need for autonomy for large-scale users. “At the end of the day, enterprises want to control their own economics,” she wrote. “They aren’t gonna be sharecroppers on Stripe’s blockchain.”

Challenging On-Chain Metrics

The strategic review comes as Optimism faces weakening on-chain performance. The network’s Total Value Locked (TVL), which measures the total assets deposited on the platform, has fallen to levels not seen since 2022.

Monthly revenue has also declined sharply, dropping from approximately $2.3 million in March 2024 to around $373,000 in October. This decrease is largely due to the Ecotone network upgrade in the first quarter of 2024, which successfully reduced transaction fees by about 90%. Alongside these figures, the network’s native OP token has also been struggling in the market.