Developers of Base and Optimism Networks Announce Revenue-Sharing and Governance Agreement
Summary:
Developers of Base and Optimism networks announce a revenue-sharing and governance-sharing agreement, with Coinbase outlining principles to prevent centralization. Base's smart contracts can only be upgraded with joint consent, and governance will eventually be handed over to a security council. Base will pay a percentage of revenue or profits to the Optimism Collective in exchange for a voice in governance. Base commits to decentralization and developing scalability and monitoring tools. Coinbase pledges neutrality and avoiding misuse of information. Critics raise regulatory concerns, but Ethereum investors hope for ecosystem growth.
The developers of Base and Optimism have announced a joint agreement for revenue-sharing and governance-sharing. Coinbase, the parent company of Base, has released a set of principles to ensure neutrality and prevent centralization. Three separate blog posts were published on August 24 by Optimism Collective, Base, and Coinbase.
According to the post by Optimism Collective, Base's smart contracts can only be upgraded with the consent of both Base and the Optimism network's team. Upgrades require a 2/2 multi-signature wallet account, with one signature controlled by Base and the other by the Optimism Foundation. Governance will eventually be handed over to a security council consisting of representatives from all chains in the ecosystem.
As part of the agreement, Base will pay either 2.5% of its revenue or 15% of its profits to the Optimism Collective. In return, it will receive approximately 118 million OP Tokens, granting it a voice in Optimism's protocol governance. The amount of tokens received will be capped at 9% of the total votable supply to maintain balance.
In Base's blog post, creator Jesse Pollack expressed the commitment to decentralization over time and the transition from "stage 0" to "stage 2" of Layer 2's decentralization. The team plans to improve scalability, develop new clients, and enhance network monitoring tools to detect cybersecurity threats.
Coinbase's post, authored by engineering lead Will Robinson, emphasized the concept of neutrality. Coinbase pledged to remain a neutral participant in the Base network, refraining from custody or control of users' crypto and avoiding misuse of non-public information. Marketing efforts will rely solely on publicly-available data. Withdrawals from Base will be processed without censorship, ensuring the freedom to exit.
Critics have raised concerns about Base's centralization and its potential scrutiny by regulatory authorities like the SEC. However, Ethereum investors remain hopeful that Base and the Optimism Superchain will contribute to the growth of the Ethereum ecosystem.
Published At
8/24/2023 5:09:40 PM
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