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Coinbase said Monday that it is "exploring" a token launch for Base, its Ethereum layer-2 network, following years of saying that it wasn't actively considering the prospect.
During a presentation at Monday's livestreamed Basecamp event in Stowe, Vermont, Coinbase Head of Base Jesse Pollak confirmed that potential token plans are in the works.
"Base is beginning to explore a network token," the network's official account posted to X afterwards. "We’re in the early phases of exploration, and don’t have any specifics to share around timing, design, or governance. We’re committed to bringing the community along with us, and building in the open."
"Yes, Base is exploring a network token, but has no definitive plans," the official Coinbase account added. "We’re exploring how a network token could help us accelerate our joint mission."
Decrypt has reached out to Coinbase for comment.
Coinbase CEO Brian Armstrong told Decrypt in late 2023 that the San Francisco-based exchange was “not planning to make any token” for Base. At the time, he said Coinbase was “very happy” with Base’s first few months of growth.
His comments appeared to conflict with those from Coinbase Chief Legal Officer Paul Grewal, who told Decrypt months prior that “a token could be viable at some point in the future,” and that it was “not something we’ve ruled out entirely.”
Base doesn’t need a token in order to function. Although some Ethereum layer-2 networks require users to pay for transactions with a native token, Base uses Ethereum itself, mirroring the underlying protocol that it inherits its security from.
It is not uncommon for crypto projects to tease token generation events as an unofficial marketing tactic, or to incentivize users to use a product in hopes of receiving an airdrop. But Base is already among the most used Ethereum layer-2 networks out there.
On Monday, for example, Base facilitated 13 million transactions across roughly 864,000 active addresses, according to crypto data provider DefiLlama. Arbitrum, another Ethereum layer-2 network, meanwhile facilitates 268,500 transactions across 2.4 million transactions.
Smart contracts on Base held $5 billion worth of tokens on Monday. That made it the sixth-largest network value by total value locked, or TVL. Among Ethereum layer-2 networks it was the largest, followed by Arbitrum at $3.45 billion.
Arbitrum introduced its own token in 2023 as the network transitioned to a decentralized governance structure. Allowing holders to propose and vote on various initiatives, other projects like the Ethereum layer-2 network Optimism have introduced tokens alongside similar shifts.
Editor's note: This story was updated after publication with additional details.
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