Following last week’s volatility, the cryptocurrency markets continue their journey with all their dullness. There hasn’t been anything exciting today except for the hack of PEPE Coin. Even Powell’s speech at the Jackson Hole meeting couldn’t shake the markets. Meanwhile, Coinbase is about to sign a significant agreement with a popular altcoin.
The Optimism Collection, the governing body of Coinbase-supported Layer 2 projects Base and Optimism, is preparing to collaborate on a revenue and governance sharing agreement. According to the statement made by The Optimism Collective, Base will transfer 2.5% of its total revenue or 15% of its net profit (whichever is greater) to the Optimism Collective and, in return, will receive 118 million OP tokens ($175 million) within six years.
Since its launch on August 9th and its support by Coinbase on the OP Stack, Base has been operating as a layer2 on Ethereum and benefits from Optimism’s OP software support. Both projects are part of the Superchain ecosystem.
Coinbase exchange launched its own network to diversify its revenue and prepare for the multi-chain world. This situation of launching its own network in the past few years increases the token issuance frenzy in the past. What will be the consequences of the inflation brought by so many layer2s? Time will show the results, but we will see that the best ones will continue their existence. Just like many altcoins that entered our lives during the ICO frenzy in the past.
The Optimism Collective wrote the following:
“Base and OP Mainnet will share upgrades, so their networks will remain compatible, homogeneous, and ultimately work together in a Superchain future. The development of these upgrades depends on Optimism governance.”
This development coincides with Base’s planned move to decentralize its network for better security and uptime, along with implementing error proofs and client application plans. Additionally, the Base and Optimism teams are working on a “security council” and a real-time monitoring tool called “Pessimism” designed to detect cybersecurity threats at the earliest.