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The transfer of all sequencer revenues from Base, an Ethereum 
$2,602 Layer 2 solution, to the cryptocurrency exchange Coinbase has sparked significant debate within the community. The Base team clarified that this transaction aims to enhance security and oversight. However, some community members have raised concerns about transparency and the contribution to the Ethereum ecosystem.
Why Did Base Transfer Sequencer Revenues to Coinbase?
Base, designed by Coinbase, is recognized as a Layer 2 scaling solution intended to reduce transaction costs on the Ethereum network. The platform stands out with its goal of facilitating faster and lower-cost transactions, drawing attention to the sequencer fees charged for each transaction on Base.
Recent data from Etherscan indicates that Base has consistently transferred all sequencer revenues to a Coinbase wallet. This information was first disclosed by Santisa, the Chief Investment Officer of Lucidity, on the social media platform X. According to Santisa, varying amounts of Ether (ETH) have been regularly sent from the Base sequencer wallet to Coinbase, with the latest transaction involving 240 ETH.
Kabir Sadarangani from Base’s strategy team responded to the backlash on social media, stating that the funds were transferred to Coinbase for security and oversight purposes. He also mentioned that they are investing all revenues back into the Ethereum ecosystem. “We incur all our expenses in ETH and are working to move most of our operations on-chain,” he added.
Debate on Transparency and Contribution to Ethereum Arises in the Community
Alongside Santisa, prominent figures in the blockchain space, such as Andre Cronje, criticized Base’s policy. Cronje highlighted that Base has generated a total revenue of 120 million dollars, but only 10 million dollars of this amount has been spent on providing data to the Ethereum main network and enhancing security.
He emphasized that the majority of the remaining revenue was directed to Coinbase rather than making a direct contribution to the Ethereum ecosystem. This raised questions about Base’s commitment to being aligned with Ethereum. In response, the Base team reiterated the importance of security and oversight processes. Sadarangani stated that they are striving for more efficient use of all funds and aiming to increase operations on the Ethereum network. Nonetheless, a section of the community insists that funds should be managed transparently and demands clearer justification for such transfers.
