BITS + BIPS

Base is exploring launching a token to compete at the highest levels, which sent shockwaves throughout the crypto system, and likely will not launch until clarity is signed into law.

• Base is exploring launching a token to compete at the highest levels.

• Building on Ethereum will allow Base to benefit from being part of a connected global economy.

• The optimal way for Coinbase to launch its token will likely be a combination of airdrops and a public sale.

Base is exploring launching a token to compete at the highest levels, and there's speculation on whether Coinbase shareholders would agree to this because tokens typically have no right to underlying assets, revenue, or voting rights in shareholder meetings; the launch of a token should help attract more activity and incentivize builder teams to deploy on top of base. To kill the FUD, Base is committed to building on Ethereum, benefiting from being part of a connected global economy.

Bass Exploring a Token

• 00:02:26 Base is exploring a token, which is big news because it had previously stated it was not interested in doing so; Base feels a token will help supercharge and compete at the largest levels, but the announcement is more of an exploration rather than a launch. The announcement will renew more interest in Base and serve the purpose of controlling the narrative, and they are probably still ironing out complex details such as regulation.

Building on Ethereum

• 00:06:46 Base is committed to building on Ethereum, benefiting from being part of a connected global economy, and because Ethereum is on its path to becoming institutionalized as an asset and a chain. Base has been built on EVM and is the settlement chain for all types of assets, which Ryan sees as the 'front-footed' and the institutional and retail BD arm of Ethereum.

Token Allocation

• 00:09:38 Ryan believes that if a typical token project allocation is followed, then a large portion of the base token would be held by Coinbase, with an additional amount held by an independent treasury managed between the Base team, Coinbase, and other participants in the community, and the rest going to the broader community. It’s believed that over time there will be enough ownership by Coinbase to incentivize it to continue to provide value and flows on top of Base.

How to Launch Token

• 00:19:25 The optimal way for Coinbase to launch its token will likely be a combination of airdrops and a public sale. Ryan believes there are three aspects to consider: how to distribute the tokens to builders, make TVA and the base app the consumer front end of base, and have a public sale through a Coinbase platform. Launching via a Coinbase platform would be similar to Robinhood’s product where users can invest in IPOs, but in a way that is crypto and Coinbase native.

Token Utility

• 00:29:51 Ryan guesses the properties of a Base token will likely be very similar to ETH, including the amount of profits generated as a chain through fees being burned in real time as a ratio to the amount of fees Base generates. If launched, the token will likely take on similar properties as the main DeFi liquidity asset on top of Base, similar to how Coinbase treats USDC. Although governance is within the realm of possibility, Coinbase will unlikely open up extremely important product or engineering decisions to the community.