Base Team Member Refutes Claims That Its Sequencer Coinbase Has Been Selling ETH

A subordinate of furniture 2 scaling solution Base has refuted rumors that its sequencer Coinbase has been selling ether (ETH).

"Coinbase has accumulated $300M+ successful ETH, which is much than 2x each of Base's ETH net implicit time," Base subordinate Kabir.base.eth said connected X Sunday. "Base and Coinbase person and proceed to clasp ETH and publically disclose our agelong word holdings (100K ETH+, $300M+)."

Kabir added that Base uses offchain custody for information and audit reasons (that's wherefore funds determination to Coinbase), stressing that the Ethereum furniture 2 solution earns and spends arsenic overmuch arsenic imaginable successful ETH, utilizing it for Layer 1 costs and granting support. CoinDesk reached retired Coinbase for a remark connected the matter.

Kabir's comments came aft pseudonymous perceiver Santisa said Base has been transferring each sequencer fees to Coinbase since the debut, and the sequencer has apt sold these coins.

Coinbase is supposedly the lone sequencer node connected Base that sequences and finalizes transactions successful a specified bid and improves transaction throughput (speed). Coinbase charges a fee, collected successful ETH, for this sequencer role.

Santisa's instrumentality echoed Sonic Labs laminitis Andre Cronje's concerns astir the usage of centralized sequencers successful furniture 2 solutions that pb to nett models that don't afloat align with the broader Ethereum values.

In essence, portion Layer 2 scaling solutions gain a important gross from transaction fees, they nonstop a tiny information of that to the Ethereum mainnet for information availability and information purposes. In different words, astir fees collected successful ETH is either retained oregon offloaded into the market, reducing the interest gross and associated ETH burning connected the mainnet. That has an adverse interaction connected ETH's supply.

"L2s are wherefore Ethereum is inflationary again. SCALE ETHEREUM. They tin get the Sonic tech for free. 0 charge. Will 1000x their throughput," Cronje said connected X.