- Vitalik Buterin defends Base against centralization claims, stating it follows correct procedures and cannot access user funds.
- Base now generates more fees than Ethereum, as Buterin suggests DeFi adoption could boost Ethereum’s revenue.
Vitalik Buterin has publicly supported Base, a Layer 2 network , following accusations of excessive centralization. Critics on social media platforms argued that Base functions as an unlicensed securities exchange because Coinbase operates its primary sequencer, which determines transaction order. Buterin dismissed these claims, stating that Base follows correct procedures and cannot appropriate user funds.
Buterin explained that Base does not hold custody of user assets, meaning it cannot prevent withdrawals or steal funds. He emphasized that the security models of Layer 2 networks like Base provide concrete protections against scenarios where users might lose access to their money. Specifically, users can withdraw funds directly through the Ethereum mainnet even if the Layer 2 ceases operations.
Data tracker L2 Beat classifies Base as a «stage 1» network, a category it shares with Optimism and Arbitrum, because user assets remain secure. However, some observers noted that the security councils of these networks retain the ability to override on-chain code and potentially lock assets. Buterin acknowledged this point but clarified that voting powers exist outside the council, maintaining a non-custodial framework.
Base launched in August 2023, and Coinbase promotes it as a low-cost platform for on-chain activities. Since the start of 2024, the total value locked on Base has grown tenfold, rising from $500 million to $5 billion. Over the past three months, Base’s fees increased by 4% to $146,000, with revenue reaching $141,700. In contrast, Ethereum’s revenue declined by 92% to $101,000.
Buterin suggested that Ethereum’s revenue could improve with the adoption of low-risk decentralized finance applications, comparing it to a «Google Search» moment for the network. Meanwhile, concerns persist that Base’s growth might introduce risks if it diverges from Ethereum.
Joseph Lubin, another Ethereum co-founder, expressed that such a separation could be problematic. Jesse Pollak, who created Base, affirmed commitments to advance the network to «stage 2» as part of efforts to increase decentralization.
