Base, Coinbase’s Layer 2 blockchain built on Optimism’s OP Stack, is poised to revolutionize the Ethereum scaling landscape. As a bridge to mass adoption, it offers faster, cheaper transactions and a platform for decentralized applications (dApps). However, one major component is missing: a native token.

It’s understandable that Coinbase is treading cautiously given its ongoing skirmishes with the U.S. Securities and Exchange Commission (SEC) over regulatory clarity in the crypto space. But when viewed in light of Optimism’s success with its own OP token, the question arises — why not Base?

Here’s why Base should reconsider its token strategy:

1. Strengthening the Base Ecosystem with Governance Base has the potential to become a hub for App development and DeFi activities, but without a native token, it lacks a crucial tool for decentralized governance. A token would allow users, developers, and validators to have a voice in the decision-making process, making the network more resilient and adaptable over time. Governance tokens, as seen with Optimism’s OP token, empower the community to vote on key decisions like network upgrades, fee adjustments, and incentive structures.

Optimism has navigated regulatory challenges, launching OP while avoiding SEC complications by emphasizing its governance utility. Base could follow this path, leveraging the token for governance while minimizing speculative risks.

2. Enhanced Incentives for Developers and Validators While Base can scale Ethereum, incentivizing developers and validators is key to its long-term growth. A native token would allow Coinbase to create structured reward systems:

Developers could be rewarded for building critical infrastructure or decentralized applications. Validators could stake the token to secure the network and process Layer 2 transactions, enhancing security and reliability. Optimism’s OP token model includes these mechanisms, creating a vibrant ecosystem where participation is rewarded. Without a token, Base risks missing out on this opportunity to rapidly expand its network through incentivized development.

1. Token as a Liquidity Engine Liquidity is the backbone of any Layer 2 blockchain. A native token would allow Base to unlock liquidity across DeFi applications built on its network. The token could facilitate staking, farming, and liquidity pools, driving users and capital to the platform. Without a token, Base could struggle to bootstrap liquidity, as users may turn to Layer 2 solutions like Optimism and Arbitrum that already offer token-based rewards and yield opportunities.

Tokens also enable cross-chain liquidity, allowing users to easily move assets between Layer 1 and Layer 2 networks. In the case of Base, this could strengthen its position as a trusted Ethereum scaling solution, giving users and developers more reasons to engage with the network.

1. Decentralization and Autonomy Currently, Base is heavily tied to Coinbase, a centralized entity. While this offers regulatory credibility and user trust, it also limits the network’s decentralization. A native token could enable Base to decentralize its operations over time, reducing reliance on Coinbase and allowing the community to take ownership of the network.

Optimism has already made strides in this direction, using the OP token to shift control away from the core team toward its community. For Base, a token would be an essential step toward achieving similar decentralization and fostering greater autonomy.

1. Capture Value and Drive Innovation One of the biggest arguments for a Base token is the ability to capture value created within the ecosystem. With fees, rewards, and governance tied to a token, Base could create a more self-sustaining economy. A token would allow the platform to monetize the activity happening on Layer 2, giving both the network and its participants a direct financial stake in its success.

This value capture model would fuel more innovation. Optimism has shown that projects with token economies are able to scale faster, attract more developers, and create richer ecosystems of dApps and services.

1. Building a Long-Term User Base A native token would provide users with skin in the game. It fosters long-term engagement because users feel invested in the network’s growth and prosperity. This can translate to a more loyal, dedicated community, particularly in DeFi and gaming, where tokens often serve as incentives for activity and participation.

Optimism’s success has demonstrated that a well-structured token economy can incentivize network effects, bringing in not just retail users but institutions and long-term developers who want to build on a robust, decentralized platform. Base has the same potential, but it requires a native token to fully realize it.

Addressing the SEC Hurdle It’s true that Coinbase’s battle with the SEC looms large. A token launch could invite scrutiny from regulators, particularly if the token is perceived as a security. However, Coinbase is uniquely positioned to handle this challenge:

Coinbase’s regulatory experience gives it the tools to launch a utility or governance token in compliance with existing frameworks. By focusing the token’s utility on governance, staking, and liquidity provisioning — rather than speculative purposes — Base can reduce the regulatory risks. Following the precedent set by Optimism, Base can introduce a token that emphasizes network utility and community empowerment. Conclusion Despite the regulatory challenges, deploying a native token for Base would enhance its governance, incentivize key stakeholders, and accelerate the growth of its ecosystem. Optimism’s OP token serves as proof that tokens can coexist with the current regulatory environment, as long as they are thoughtfully designed. If Base wants to be a long-term leader in Ethereum scaling, a native token is not just an option — it’s a necessity.

Base should seize this opportunity to fuel its decentralized vision and establish a thriving Layer 2 economy. The right token strategy, paired with Coinbase’s regulatory insight, could propel Base to new heights while remaining compliant in a rapidly evolving landscape.