Base Announces Plans for a Network Token! What Does It Mean?

Base Announces Plans for a Network Token! What Does It Mean?

Base, the Ethereum Layer-2 network built by Coinbase, has entered an important stage in its development. At BaseCamp 2025 in Vermont, CEO Brian Armstrong and Base creator Jesse Pollak revealed that the project is now considering the introduction of a network token. 

This marks a clear change of direction for Coinbase, which had previously maintained that Base did not need a token to succeed.

Base’s Consideration of a Native Token

When Base was first launched in 2023, its stated purpose was simple: to be a low-cost, secure, and developer-friendly chain. At the time, Coinbase argued that issuing a token would not improve those goals. 

The team chose instead to focus on fast finality, cheap transactions, and building tools that attracted developers. In the two years since, Base has largely delivered on those promises, gaining credibility for its technical performance and ecosystem growth.

The fact that Coinbase is now open to a token demonstrates how circumstances have shifted. Armstrong pointed out that such a token could be used to broaden participation and reward those contributing to the ecosystem. 

In practice, this could mean more incentives for application builders, easier ways for users to engage, and stronger mechanisms for ensuring that the network remains decentralised.

Pollak’s intervention at BaseCamp was striking in tone. He admitted to being nervous about raising the subject, noting that many advised him to remain silent until the idea was more complete. 

Instead, he argued that Base should continue with its principle of openness, choosing to share the exploration publicly and seek feedback at the earliest opportunity.

The broader environment also helps explain the timing. Just days before, Linea, another Layer-2 network incubated by Consensys, completed a major token distribution, releasing over nine billion LINEA tokens to users. 

That event generated significant attention and speculation, and many wondered whether Base would remain an outlier by not pursuing a token. By announcing this shift, Base has signalled that it does not intend to be left behind.

Alongside the token discussion, the project presented other updates that point towards a wider ambition. One of the most significant was the introduction of a bridge between Base and Solana. 

The bridge allows ERC-20 assets and Solana’s SPL tokens to move seamlessly between the two chains. This feature makes it possible to use SOL within Base applications or to transfer assets out of Base into Solana, strengthening liquidity and connectivity between ecosystems.

The builder programme also continues to expand. The second round of Base Batches, starting at the end of September, will provide mentorship, funding, and access to distribution channels for new developers. 

The first edition attracted more than 5,000 participants from over 100 countries and awarded more than one million dollars in support. The follow-up round is set to culminate at Devconnect in Argentina, providing an even larger global stage.

The Base App, a product that combines payments, trading, app discovery, and social functions, is also moving forward. Although still in beta, it already has more than a million users on its waiting list and has paid out half a million dollars to creators. 

For Coinbase, this application is a way of bringing builders and users into direct contact, giving developers immediate access to an engaged audience.

From the perspective of adoption, the numbers are compelling. According to DeFiLlama, Base’s total value locked recently reached more than five billion dollars before stabilising just under that figure. 

This places Base among the six largest blockchains by this metric. Lending platforms such as Morpho and Aave contribute a large share of that value, while stablecoins on Base represent more than four billion dollars in market capitalisation. 

Daily activity is equally striking, with nearly a million active addresses and more than twenty billion dollars in bridged assets.

Challenges remain, however. In August, the network experienced a thirty-minute outage when a sequencer handover failed during a period of high activity. 

The interruption highlighted the complexity of operating a fast-growing Layer-2 at scale. While the team resolved the incident quickly, it served as a reminder that reliable performance is as critical as innovation.

Altogether, these developments suggest that Base is considering a token not simply to follow competitors but because its scale now demands more formal economic mechanisms to align the interests of users, developers, and the broader community.

Understanding Network Tokens

A network token differs from ordinary cryptocurrencies in that its value is rooted in the functions it performs within a blockchain. Instead of existing purely as a tradable asset, it provides access to essential operations of the network.

Such tokens are commonly used to pay transaction costs, support consensus systems, and coordinate upgrades. They are also designed with economic mechanisms to maintain balance in the system. 

These can include issuing tokens through faucets, removing them through burning, or implementing buyback and reward programmes. These mechanisms ensure that supply and demand remain manageable, keeping the network sustainable over time.

Network tokens also sit in a complex legal position. They can resemble commodities, in the sense that they provide access to a resource, but also exhibit characteristics of securities, particularly when tied to investment and governance. 

Regulators in the United States, including the SEC through its 2019 framework and the FIT21 act, have clarified that tokens can be excluded from securities laws provided they are part of decentralised systems where no single actor has control.

Examples of such tokens are already familiar to the industry. Bitcoin’s BTC, Ethereum’s ETH, and Solana’s SOL are all network tokens underpinning major blockchains. 

There are also protocol-level examples like Uniswap’s UNI and Aave’s AAVE, which play a role in governance and incentives.

If Base introduces its own token, it would likely adopt similar roles. It could cover transaction fees, provide incentives for developers, and allow token holders to participate in governance decisions. 

In doing so, it would help distribute decision-making power, making the network less dependent on Coinbase itself. This aligns with the stated vision of creating a more open and inclusive on-chain economy.

The absence of a token, by contrast, may limit Base’s options for distributing ownership and funding long-term growth. Introducing one would provide a flexible mechanism for sustaining the network’s progress.

Still, Coinbase faces unique conditions. As a publicly listed US company, it is under greater scrutiny than many blockchain projects. 

Both Armstrong and Pollak have been clear that any move towards a token will involve close engagement with regulators. That may slow the process, but it also reinforces their intention to build in a way that is sustainable and legally sound.

Conclusion

The announcement that Base is exploring a network token marks a pivotal moment in its journey. Once firmly against the idea, Coinbase is now open to the possibility, recognising that a token could help secure the network’s long-term decentralisation and growth.

If introduced, such a token could reward developers, involve users more directly in governance, and embed economic incentives into the fabric of the network. This would align Base with other leading blockchains while still reflecting its own priorities.

For now, nothing is final. The design, timing, and governance of a potential Base token remain undecided. 

But the willingness to raise the question openly shows that Base intends to evolve transparently, together with its community. That choice alone underscores its ambition to grow from a fast Layer-2 solution into a central player in the global on-chain economy.