Base set to receive 118M OP tokens over six years in governance agreement

Quick Take

  • Optimism Foundation is proposing to grant Base 118 million OP tokens over a span of six years.
  • Base, in return, will contribute 2.5% of its sequencer revenue or 15% of its net profits (whichever is greater) to the Optimism Collective.
  • The collaboration represents a “shared commitment to rules for upgrades” between the two projects.

Coinbase-backed Layer 2 Base and the Optimism network’s governance body, The Optimism Collection, are set to collaborate on a revenue and governance sharing agreement.

An Optimism Collective proposal states Base will contribute either 2.5% of its total sequencer revenue or 15% of its net profits, whichever is greater, to the Optimism Collective, and in return, will receive up to 118 million OP tokens ($175 million) over six years, The Optimism Collective said.

The agreement is part of "a shared commitment to the rules for upgrades and sequencing of OP Chains."

Since opening on Aug. 9 and backed by Coinbase on the OP Stack, Base operates as a Layer 2 chain on Ethereum and was developed using Optimism’s OP software stack. Both projects are part of what's named as the "Superchain" ecosystem.

"Base and OP Mainnet will share upgrades, so the chains' blockspace remains compatible, homogeneous, and eventually interoperable in a Superchain future. How those upgrades evolve is up to Optimism governance,” the Optimism Collective added.


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Decentralizing for security and uptime

The development coincides with Base’s planned move toward decentralizing its network for improved security and uptime, with plans to implement fault proofs and multiple clients. Additionally, the teams at Base and Optimism are working on a "security council" for securely executing upgrades, and "Pessimism," a real-time monitoring tool designed to detect cybersecurity threats at the earliest.

Base is also working with OP Labs on a client called OP-geth that's aiming for fault-proof diversity and minimizing network failure risks.

© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

About Author

Vishal Chawla is The Block’s crypto ecosystems editor and has spent over six years covering tech protocols, cybersecurity, artificial intelligence and cloud computing. Vishal likes to delve deep into blockchain intricacies to ensure readers are well-informed about the continuously evolving crypto landscape. He is also a staunch advocate for rigorous security practices in the space. Before joining The Block, Vishal held positions at IDG ComputerWorld, CIO, and Crypto Briefing. He can be reached on Twitter at @vishal4c and via email at [email protected]


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