Base Doubles Down on ETH Strategy: No Native Token in Development Plans

Base, Coinbase's Layer 2 solution, is firmly committed to using Ethereum as its primary asset with no plans to issue a native token, according to founder Jesse Pollak's recent communication with the Chinese-speaking community.

Strategic Expansion in Asia

Base is aggressively expanding its Asian presence with strategic leadership appointments:

• Philippines: National department head appointed to drive regional growth
• Indonesia & Singapore: Team expansion planned in the near term
• China: Enhanced developer support through dedicated communication channels and resources

ETH-Centric Approach: Market Implications

Base has reaffirmed that Ethereum will remain the native asset for its ecosystem, with all gas fees continuing to be paid in ETH. This strategic decision stems from several key considerations:

• Ecosystem alignment: Maintaining tight coupling with Ethereum as its foundational L2
• Decentralization protection: Avoiding potential conflicts with Ethereum's governance model
• Regulatory clarity: Reducing securities-related legal exposure that could arise from token issuance

This approach differentiates Base from other L2 networks like Arbitrum and Optimism, which have introduced their own tokens. The continued commitment to ETH could increase demand pressure as Base's ecosystem expands.

Social and Creative Economy Focus

Base is positioning itself as a platform for next-generation social applications and creator ecosystems:

• Zora integration: Supporting decentralized social networking that returns control to users
• NFT ecosystem: Emphasizing digital ownership and creator economy applications
• Mass adoption priority: Focusing on applications with mainstream appeal

Developer Support Initiatives

The "Base Batches Program" provides comprehensive support for promising projects:

• Funding: Capital for development and operational needs
• Mentoring: Expert guidance through development stages
• Marketing: Visibility and user acquisition assistance
• Scaling support: Infrastructure for growth beyond initial development

Market Position Analysis

Base is carving out a distinct market position with clear differentiators:

• ETH-focused strategy: Leveraging Coinbase's infrastructure rather than token incentives
• EVM compatibility with low costs: Competing with Solana's high-speed positioning
• Institutional backing: Utilizing Coinbase's resources for stability and growth

If successful, Base could become the preferred L2 for social applications and NFT projects, potentially strengthening ETH's position in the broader market by reducing the proliferation of alternative L2 tokens.

The strategy represents a significant divergence from other scaling solutions that have pursued token-based incentive models, setting up an interesting market dynamic to watch as different L2 approaches compete for developer and user adoption.