Blockchain News

Base Network: Will There Be a $BASE Token?

The recent launch of the BASE network signifies Coinbase's foray into blockchain technology but also offers the potential for generating fees from operating its blockchain and revenues from applications built atop it.

Base Network Goes Live

Coinbase unveiled its Base blockchain to the general public on Aug. 9 at 4 PM UTC, although the service was already available to developers for testing purposes. CEO Brian Armstrong announced Coinbase's intention to build Base network last February when he revealed the Coinbase Secret Master Plan.

Besides reaping the rewards from its cryptocurrency trading platform, the company is now poised to amass fees by operating its unique blockchain. This blockchain infrastructure can also generate substantial revenue through applications developed on top of it.

Jesse Pollak, the head of protocols at Coinbase, overseeing the Base project, recently revealed that around 100 dapps are already in operation or poised for deployment on the new network. This speaks volumes about the potential vitality of this ecosystem. 

But what has captured the community's attention is the possibility of launching a token associated with the BASE network.

To address these speculations head-on, Coinbase has unveiled a comprehensive roadmap for Base. The company's roadmap clearly states that "Base has no plans to issue a network token." This approach aligns Base with most Ethereum Layer 2 blockchains, leveraging ETH for transactions and covering gas fees. 

Worth noting Base's journey into Ethereum Layer 2 has been bolstered by a collaboration with Chainlink. By integrating Chainlink's price feeds, Base aims to simplify connections to external applications, lending and borrowing protocols, and derivatives markets within the growing DeFi landscape.

A Competitive L2 Landscape

Coinbase's entry into the Layer 2 arena puts it in direct competition with established networks like Optimism and Arbitrum. The success of these platforms serves as a testament to the potential that Base holds. 

It's worth noting that while these contenders possess tokens trading on major exchanges, Base remains steadfast in its decision not to issue a network token at this juncture.

While Coinbase's stance on token creation is clear, history has shown that strategies can evolve in the dynamic crypto landscape. Arbitrum, for instance, operated for two years before unveiling its token, indicating that adaptations are possible over time.

In the broader context of Layer 2 solutions, Arbitrum, Polygon, and Optimism have established themselves as dominant players, boasting impressive figures in total value locked. Arbitrum leads with $1.956 billion, closely trailed by Polygon with $1.304 billion and Optimism with $1.255 billion.

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