The $BASE token will likely be a combination of $AERO and $ZORA tokenomics. $BASE holders will vote escrow the token to direct the network fees as liquidity incentives to pools that use $BASE as quote currency. This solves 2 big problems: 1) The growth of the L2 networks remained tied to ETH rather than the L2 tokens 2) Coinbase can sit back and grow the economy of Base and decentralize it without needing to rent seek ------------------------------------------------------------ The crypto bros have long midcurved the value accrual narrative of L1 assets by arguing that the main driver is transaction fees. This is just pure midcurvery and has an inherent mathematical dilemma built into it. ETH and SOL have a monetary premium and are tied to the growth of their networks because they are the quote currency on their ecosystems. The quote currency is the second currency in a trading pair — i.e. how most AMM pools are $TOKEN/$ETH pools on EVM chains. As tokens are launched on these...
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