Coinbase CEO Brian Armstrong confirmed via a post on X that the company is exploring the possibility of a native network token for Base, its Ethereum Layer-2 scaling network.
He emphasized that this is still in the early stages, with no definitive plans, timing, design, or governance details available yet, and described it as an update to their philosophy rather than a commitment.
The potential token could serve as a “great tool for accelerating decentralization and expanding creator and developer growth in the ecosystem.” This announcement followed a presentation by Jesse Pollak, creator of Base and a Coinbase executive, at the BaseCamp 2025 event in Vermont.
Pollak stated that Base is “beginning to explore a network token” to strengthen ties with the Ethereum ecosystem, while committing to transparency, regulatory compliance, and staying built on Ethereum.
Base currently uses Ethereum’s ETH as its gas token, so a native token would mark a significant evolution toward greater independence and decentralization.
This represents a shift from Coinbase’s earlier stance. In late 2023, Armstrong explicitly stated there were “no plans” for a Base token, focusing instead on broad adoption without proprietary incentives. By mid-2025, discussions had evolved, with the company now viewing a token as a way to foster community ownership and innovation.
Base, launched in 2023, has grown rapidly as a low-cost Ethereum Layer-2 solution, handling billions in transaction volume and attracting developers for on-chain apps. A native token could align incentives further, similar to how tokens power networks like Optimism or Arbitrum on which Base is built.
A native token could distribute governance and economic incentives, reducing Coinbase’s centralized control over Base and aligning with Ethereum’s ethos of decentralization. This could attract more developers and users who prioritize decentralized networks, boosting Base’s credibility in the crypto community. It may also mitigate regulatory scrutiny by shifting ownership to the community.
A token could incentivize developers, creators, and users through rewards, staking, or governance participation, driving app development and user adoption. Increased activity on Base could lead to higher transaction volumes, more dApps and greater network utility, potentially rivaling other Layer-2 solutions like Optimism or Arbitrum.
Introducing a native token might replace or complement ETH as the gas token for transactions on Base, altering the network’s economic model. This could lower transaction costs further if designed to be cheaper than ETH but may introduce complexity for users managing multiple tokens. It could also reduce Base’s direct dependency on Ethereum’s gas dynamics.
The announcement alone has likely sparked speculative interest, as seen with price movements in related tokens following similar news historically. If a token is launched, it could attract significant capital inflows, but volatility is likely during early trading. Coinbase’s stock may also see increased attention due to Base’s growing prominence.
A native token would need to navigate U.S. regulatory frameworks, especially given Coinbase’s public commitment to compliance. Delays or restrictions could arise if regulators classify the token as a security, requiring registration or exemptions. Coinbase’s transparent approach may mitigate risks but could slow development.
A token could position Base as a stronger competitor to other Ethereum L2s like Arbitrum, Optimism, or zkSync, many of which already have native tokens. Base could capture more market share in the L2 space, especially if its token offers unique utility or governance features, but it risks fragmenting liquidity across L2 ecosystems.
A token could empower the Base community to influence network upgrades, fee structures, or protocol changes via decentralized governance. This could foster a stronger sense of ownership, attracting developers to build innovative dApps and increasing user retention through token-based rewards or loyalty programs.
Introducing a token could lead to governance disputes, speculative bubbles, or misalignment with Ethereum’s broader roadmap. Poorly designed tokenomics or governance could harm Base’s reputation or lead to community fragmentation. Additionally, a token launch might strain resources if not carefully managed.
This move aligns with Coinbase’s goal to be a leader in the on-chain economy, leveraging Base’s rapid growth billions in transaction volume since 2023 to compete in the L2 space. A Base token could strengthen Ethereum’s scaling ecosystem by adding another robust L2 option, but it may also compete with other L2s for developer and user attention.
The crypto market often reacts strongly to token announcements, so short-term price movements in Coinbase’s stock or Ethereum-related assets may occur, though long-term success depends on execution. If this develops, it would be shared openly with the community, per Coinbase’s commitments.
