The Defiant

Base Inks Profit Sharing Deal With Optimism

Coinbase’s Layer 2 Network Will Receive OP Tokens For Governance Participation

By: Samuel Haig Loading...

Base Inks Profit Sharing Deal With Optimism

Coinbase and Optimism have reached a strategic profit-sharing agreement for Base, Coinbase’s OP Stack-based Layer 2 network.

Base will share either 15% of gross profits generated or 2.5% of its total revenue from transaction sequencing — whichever is greater — with the Optimism Collective.

“This collaboration [with Optimism] has allowed us to build Base on an open source codebase that will scale Ethereum and further the entire on-chain ecosystem,” Base said.

Base can also earn up to 2.75% of the OP token supply for its contributions to the Optimism Collective. The tokens will also enable Base to participate in on-chain governance, with its voting power limited to a maximum of 9%.

The agreement also outlines that upgrades to the Base protocol can only be authorized by a two-of-two multisig requiring signatures from both Base and the Optimism Foundation.

Superchain

In June, Optimism launched the OP Stack, a modular framework for deploying Layer 2 networks. Optimism invites networks built leveraging the OP Stack to participate in the “Superchain,” a unified ecosystem of OP Stack-based chains that Optimism plans to progressively roll out from its next upgrade. Base also acts as a core developer for the OP Stack.

“Chains that are part of the Superchain will allow builders and users to transact and move across chains easily and affordably, creating a consistent user experience and laying the groundwork for teams everywhere to build a decentralized future,” Base said.

On Aug. 24, Coinbase also published the “Law of Chains,” a common set of standards for Superchain protocols. The standards include commitments to neutrality, decentralization, and a free market for transaction ordering.

Base’s Meteoric Rise

Base has rocketed to prominence since completing its mainnet launch on Aug. 9.

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It ranked as the top L2 by transaction throughput on Aug. 21, even beating out Ethereum by 24-hour activity, according to L2beat. The network is currently the third most active L2 processing 7.7 transactions per second (TPS) over the past day, closely following Arbitrum and zkSync Era.

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Layer 2 TVL

The network has a total value locked of $244M, ranking fifth among Ethereum L2s.

Base and Optimism are also working on building an open-source monitoring stack, “Pessimism,” to ensure the security of the OP Stack.

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