BASE

Base and Optimism to Share Revenue and Governance in New Agreement

by BSC News

August 25, 2023

chain

At the heart of this collaboration lies a framework for smart contract upgrades within Base. These upgrades require approval through a dual-signature process involving Base and the Optimism Foundation.

Base X Optimism: Decentralization in Focus 

Base and Optimism networks have unveiled a collaborative agreement encompassing revenue and governance-sharing. This pivotal development aims to enhance the decentralized nature of these networks and ensure their sustainable growth.

A key aspect of this agreement is the framework for smart contract upgrades within Base. These upgrades can only occur through a two-of-two multi-signature wallet account.

One signature is under Base's control, while the other resides with the Optimism network's team, referred to as the "Optimism Foundation." This setup ensures that the Base's upgrades necessitate the Optimism team's consent, reinforcing collaborative decision-making.

Further, the agreement stipulates that Base will contribute either 2.5% of its revenue or 15% of its profits to the Optimism Collective, whichever figure is higher. In return, Base will be granted "up to approximately 118 million OP Tokens," providing it with a voice in Optimism's protocol governance.

This move towards shared revenue emphasizes Base's role in contributing to the ecosystem's development while maintaining balance by capping 9% of the total votable supply.

Evolving Decentralization and Governance

Coinbase, the parent company of Base, has laid out a set of "principles of neutrality" to safeguard against the centralization of Base. Jesse Pollak, Base's principal creator, highlighted the trajectory from Ethereum co-founder Vitalik Buterin's "stage 0" to "stage 2" of layer 2 decentralization. 

Further, to bolster scalability and diversity, the Base team is working on enhancing Optimism clients. Notably, the creation of a new client called "op-reth" aims to expand the spectrum of client options.

Disclaimer

Disclaimer: The views expressed in this article do not necessarily represent the views of BSCNews. The information provided in this article is for educational and informational purposes only and should not be construed as investment advice. BSCNews assumes no responsibility for any investment decisions made based on the information provided in this article

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