Base Team Member Denies Rumors of Coinbase Selling ETH
Base, a layer 2 scaling solution, denied rumors that its sequencer, Coinbase, has been selling ether (ETH). Key points include:
- Coinbase holds over $300 million in ETH, more than twice Base's total ETH earnings.
- Base emphasizes security and audit through offchain custody, leading to fund movements to Coinbase.
- Transaction fees are paid to Coinbase in ETH for its role as the sole sequencer node.
- Pseudonymous observer Santisa raised concerns about profit models misaligning with Ethereum’s values, suggesting all sequencer fees are sent to Coinbase and potentially sold.
- Concerns exist regarding centralized sequencers affecting fee revenue and ETH supply, contributing to Ethereum's inflationary status.
- Andre Cronje criticized the situation, indicating that L2s could leverage technology to enhance throughput without additional costs.