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Developers associated with the Base and Optimism networks have collaboratively revealed a revenue-sharing and governance-sharing arrangement. Coinbase, the parent organization of Base, has also released a set of “principles of neutrality” that it will adhere to in order to prevent Base from becoming centralized. This announcement was conveyed through three distinct blog posts on Aug. 24: one from the jointly managed Optimism Collective, one from Base, and one from Coinbase.
As stated in the Optimism Collective’s post, Base’s smart contracts can only be upgraded through a two-of-two multisignature wallet account. One signature is held by Base, while the other is managed by the Optimism network’s team (referred to as the “Optimism Foundation”). This stipulation ensures that Base cannot be upgraded without the approval of the Optimism team. As additional chains choose to utilize the OP Stack and join the “Superchain,” governance will be transferred to a “security council” comprising representatives from all chains within this ecosystem.
This month marked a significant milestone for Ethereum: a publicly listed US company incubated and launched an OP Chain powered by Optimism.
But @BuildOnBase signifies much more than merely technological validation of the OP Stack.https://t.co/E1Pow0LIlk— Optimism (✨_✨) (@optimismFND) August 24, 2023
Base will also allocate either 2.5% of its revenue or 15% of its profits to the Optimism Collective, whichever amount is higher. In exchange, it will obtain “up to approximately 118 million OP Tokens,” granting it a voice in the governance of Optimism’s protocol. This allocation will be limited to 9% of the total votable supply to ensure equilibrium, as stated in the announcement.
The post from Base was issued under the name of its primary creator, Jesse Pollak. He assured that Base will evolve towards greater decentralization over time, progressing from what Ethereum co-founder Vitalik Buterin referred to as “stage 0” to “stage 2” of a layer 2‘s decentralization. The Base team will focus on enhancing the scalability of the two existing Optimism clients, op-geth and op-node, and will develop a completely new client named “op-reth” to diversify the types of clients utilized.
Related: Coinbase layer-2 network Base reaches 136,000 daily active users
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The team will also persist in developing Pessimism, a real-time network-monitoring tool designed to identify cybersecurity threats at an early stage.
Additionally, Pollak confirmed that Base will share revenue with the Optimism Collective and will ultimately transfer upgrade keys to an Optimism security council.
Coinbase’s post was published under the name of the company’s engineering lead, Will Robinson. He specifically emphasized the notion of “neutrality.”
Robinson committed that Coinbase will act as a neutral participant in the Base network. The exchange will not “custody or control the crypto that users bring to the Base network,” nor will it alter the sequence of transactions for its own advantage or “misuse any non-public information obtained from Base.”
Robinson asserted that Coinbase’s marketing team and other divisions of the company will rely solely on publicly accessible data from block explorers and other resources in their efforts to promote Coinbase’s products, gaining no insider advantage from operating Base’s sequencer. Withdrawals from Base will also be executed without censorship, honoring what Robinson describes as “freedom to exit.”
Some critics of the Base network have indicated that its presently centralized nature may attract regulatory attention from the United States Securities and Exchange Commission. For instance, attorney Gabriel Shapiro has remarked that Base “could pose a risk of dangerous collateral damage” to the industry.
Coinbase CEO Brian Armstrong also raised concerns on March 7 by suggesting that “centralized players” on Base should implement identity verification. Despite these criticisms, numerous Ethereum investors have expressed optimism that Base and the Optimism Superchain will facilitate the onboarding of new users into the Ethereum ecosystem.
