Coinbase Explores Creation of Native Token for Base Network

TLDR

• Coinbase’s Base has $5 billion total value locked.
• Jesse Pollak leads the token exploration initiative.
• Announcement triggered a 35% surge in Avantis value.

Coinbase’s Base, an Ethereum Layer 2 network, is exploring the potential creation of a native network token. This exploration, disclosed by Jesse Pollak, Head of Protocols at Coinbase and creator of Base, occurred during the BaseCamp 2025 event and marks a significant strategic shift for the platform.

The discussions regarding this token are in the early stages, emphasizing transparency, regulatory compliance, and community involvement. The initiative is led by Jesse Pollak, with support from Coinbase CEO Brian Armstrong, who confirmed the exploration of a native token.

Key Figures and Statements in Token Exploration

Jesse Pollak, a significant player in the industry, is spearheading this initiative. Having led the launch and expansion of Base since 2023, Pollak focuses on Ethereum ecosystem integration and Layer 2 scaling.

Brian Armstrong, CEO of Coinbase, is known for his advocacy for regulatory clarity and market expansion. Armstrong confirmed the exploration phase through a post on X (formerly Twitter), stating, “We’re just updating our philosophy. As of now, we’re exploring it.”

Potential Impact on the Coinbase Ecosystem

While no official funding allocations for the project have been disclosed, Base has historically accumulated $5 billion in total value locked (TVL), with $1.7 billion added in 2025 alone. This significant liquidity highlights a strong foundation for the proposed token’s future growth.

The announcement led to a 35% surge in the value of Avantis (AVNT), a Coinbase-backed project, indicating market anticipation for assets linked to Coinbase. As such, the implications are extensive for the Coinbase ecosystem.

Ethereum’s Continued Role and Prospect of a Base Token

As Base is built on Ethereum, ETH remains central as the primary asset and gas token. If created, the potential native Base token could join ETH as a core network token. This move may impact Coinbase-linked assets and influence DeFi and meme coin activities on the Base network.

Currently, staking flows, bridge usage, and specific liquidity metrics remain unavailable, as plans for the prospective token are still unfinalized. Historically, similar events like the launches of Arbitrum and Optimism have led to significant increases in TVL and on-chain activity.

Future Prospects for Governance, Incentives, and Interoperability

The possible introduction of a Base network token suggests potential new governance and incentives mechanisms. Similar past events in the Layer 2 space have triggered increased liquidity, speculation on governance, and notable shifts in on-chain activities.

In line with evolving US regulatory attitudes, Jesse Pollak emphasized the intent to work closely with regulators to ensure legal compliance. The announcement signals a commitment to an open, community-driven process, prioritizing transparency and feedback.

Coinbase continues to expand its capabilities, as evident from its recent efforts to unlock millions of assets through DEX trading, showcasing its commitment to broadening access within the crypto ecosystem.