In the fast-paced world of blockchain and crypto, speculation around new tokens always stirs up excitement, especially when it involves major players like Coinbase. Recently, a clip from The Rollup podcast featuring investor Dan Elitzer from Nascent has been making waves. In it, Elitzer dives into the potential for a $BASE network token on Coinbase's Base Layer 2 chain. Let's break down what he said and why it matters for meme token enthusiasts and blockchain practitioners alike.

The discussion kicked off with a nod to Coinbase CEO Brian Armstrong's potential interest in aligning the company's stock (COIN) with a native token (BASE). Elitzer quipped, "You think Brian Armstrong doesn't want to have a stock called COIN and a coin called BASE?" It's a clever play on words that highlights the branding synergy Coinbase could achieve.

Elitzer referenced a tweet by his friend Kia Mosayeri, who proposed a tokenomics model blending elements from $AERO (Aerodrome Finance) and $ZORA. For those new to these, Aerodrome is a decentralized exchange on Base that uses a vote-escrow model where token holders lock up their $AERO to vote on liquidity incentives for trading pools. This has proven wildly successful, reminiscent of the "Curve Wars" where DeFi protocols battled for liquidity by accumulating governance tokens.

Zora, on the other hand, is a creator-focused platform where $ZORA serves as the quote currency for creator coins and posts, creating inherent demand as the ecosystem grows. Mosayeri's idea? Apply a similar approach to $BASE. Holders could vote-escrow their tokens to direct network fees toward liquidity pools using $BASE as the quote currency. This means pairing new tokens launched on Base with $BASE instead of ETH, tying the chain's economic growth directly to the token's value.

Why is this a game-changer? Currently, Layer 2 chains like Base rely on ETH as the primary quote currency, so as the ecosystem expands—with more memecoins, DeFi apps, and on-chain activity—the benefits flow back to ETH rather than a native L2 token. By incentivizing $BASE as the go-to quote pair, Coinbase could decentralize the network while capturing value through token appreciation. As Elitzer noted, this solves key issues: decoupling L2 growth from ETH and allowing Coinbase to "sit back and grow the economy" without aggressive rent-seeking.

Elitzer emphasized that launching such a token is "a very big thing to take a shot on," but praised Coinbase's track record of staying attuned to ecosystem trends and partnering wisely. With Base already a hotbed for meme tokens—think of the viral launches and community-driven projects—this token could supercharge liquidity and innovation in the space.

For meme token creators and traders, a $BASE token could mean deeper liquidity pools, lower fees directed by community votes, and a more vibrant on-chain economy. It's not just about speculation; it's about building sustainable value accrual in Layer 2 networks.

If you're diving into Base memecoins or exploring L2 tokenomics, keep an eye on developments from Coinbase. This could be the next big evolution in how blockchains monetize and decentralize. Check out the full clip from The Rollup podcast for more details.

What is Vote-Escrow Tokenomics?

To keep things simple, vote-escrow (often called veToken) models involve locking tokens for a period to gain voting power. The longer the lock, the more influence you have on decisions like incentive allocations. This encourages long-term holding and aligns incentives between holders and the protocol's growth.

Implications for Meme Tokens on Base

Base has become a meme haven thanks to low fees and seamless integration with Coinbase's user base. A native $BASE token could amplify this by providing targeted liquidity boosts to meme pools, potentially leading to more explosive launches and sustained trading volumes.

Stay tuned to Meme Insider for more updates on emerging tokens and blockchain trends. Whether you're a builder or a trader, understanding these mechanics can give you an edge in the crypto game.