Base and Optimism launch shared governance and revenue sharing framework

Base and Optimism launch shared governance and revenue sharing framework.

Author: TOM BLACKSTONE, COINTELEGRAPH; Translation: Song Xue, LianGuai

Developers behind Base and Optimism networks have jointly announced a revenue sharing and governance sharing protocol. Coinbase, the parent company of Base, has also released a “neutrality principle” checklist that will prevent Base from becoming centralized. This announcement was made on August 24th through three separate blog posts: one from the jointly controlled Optimism Collective, one from Base, and one from Coinbase.

According to the Optimism Collective post, Base’s smart contracts can only be upgraded through a 2-of-2 multi-signature wallet account. One signature is controlled by Base, and the other by the Optimism network team (referred to as the “Optimism Foundation”). This means that Base cannot be upgraded without the consent of the Optimism team. As more and more blockchains choose to use the OP Stack and become part of the “Superchain,” governance will be transferred to a “Security Committee” composed of representatives from all the blockchains that make up the ecosystem.

Base will also pay 2.5% of its revenue or 15% of its profits to the Optimism Collective, whichever is higher. In return, it will receive “up to approximately 118 million OP tokens,” giving it a voice in the protocol governance of Optimism. The announcement states that to maintain balance, this amount will be capped at 9% of the total voting supply.

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The post from Base was published in the name of its main creator, Jesse Pollak. He promised that over time, Base will become more decentralized, transitioning from what Ethereum co-founder Vitalik Buterin called “Phase 0” of layer 2 decentralization to “Phase 2”. The Base team will focus on improving the scalability of the current two Optimism clients, op-geth and op-node, and create a new client called “op-reth” to diversify the available client types.

The team will also continue to develop Pessimism, a real-time network monitoring tool, in an attempt to detect network security threats as early as possible.

In addition, Pollak confirmed that Base will share revenue with the Optimism Collective and eventually transfer the upgrade keys to the Optimism Security Committee.

The post from Coinbase was made in the name of the company’s Engineering Director, Will Robinson. He specifically focuses on the concept of “neutrality.”

Robinson promises that Coinbase will continue to be a neutral participant in the Base network. The exchange will not “custody or control the cryptocurrency users bring to the Base network” and will not change the transaction order or “abuse any non-public information collected from Base” for its own benefit.

Robinson claims that Coinbase’s marketing team and other branches of the company will only use publicly available data from block explorers and other tools to sell Coinbase’s products, and will not gain any internal advantages from running the Base sorter. Withdrawals from Base will also be conducted without review, respecting what Robinson calls “exit freedom.”

Some critics of Base network argue that its current centralization could lead to regulatory scrutiny from the U.S. Securities and Exchange Commission. For example, lawyer Gabriel Shapiro said that Base “may cause dangerous collateral damage to the industry.”

Coinbase CEO Brian Armstrong also stated on March 7th that “centralized players” on Base must implement identity verification, which has also raised concerns. Despite these criticisms, many Ethereum investors still express hope that Base and Optimism’s rollup will help onboard new users into the Ethereum ecosystem.

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