Centralization’s poster child gone rogue: Enter Base
The Tally Newsletter, Issue 87
Welcome back to the Tally Newsletter, a weekly publication focused on DeFi and DAO governance. We’ll keep you updated on key proposals, procedural changes, newly launched voting systems, and shifting power dynamics in the Tally ecosystem. We’ll also recommend the most important reads and listens of the week to ensure you’re an informed citizen of web3.
I’m coolhorsegirl, a DeFi native excited to bring you the latest, weekly. With prior experience at Index Coop and across the DeFi ecosystem, I’m interested in DAO governance and general DeFi innovation aimed at maximizing decentralization.
This week, we’re talking Superchain, Optimism’s new and cleverly marketed interoperability platform. Now, anyone can build an L2, and Coinbase is kicking off Superchain’s use with Base. The epitomization of centralization is getting progressively more decentralized. What that means for Coinbase, the ecosystem, and random crypto users—let’s dive in.
🤿 Deep Dive: Centralization’s poster child gone rogue: Enter Base
“Ethereum still doesn’t have internet-level scale,” claims Optimism. And, “no single chain can offer that.” That’s why Optimism is going multi superchain (that strikethrough is part of the clever tagline). This week, they announced Optimism Superchain, “a horizontally scalable network of chains that share security, a communication layer, and an open source development stack.” On Superchain, anyone can build an L2.
With the ethos of “Build together, not apart,” Superchain asserts Optimism as a platform for chains, not just a chain itself. It also asserts Optimism as a bigdog in public goods. Superchain increases decentralization, improves standardization of core primitives, and maximizes interoperability, all while using a portion of the revenue to fund the public goods that enable its existence—a positive feedback loop at its finest. And pretty based, if you ask me.
Speaking of…in tandem with the Superchain announcement, Coinbase announced Base, their L2 built on Superchain. Get the basic rundown from Finematics. Base is live on Testnet with Mainnet launch expected imminently.
Base is part of Coinbase’s recent effort to build more built natively as dapps on the onchain platform enabled by crypto, not just those that allow access to crypto. Coinbase’s products are built with this ethos include USDC, Coinbase Wallet, and cbETH.
Base has 3 aims, and some are more public good-y than others: (1) accelerate the development of Coinbase’s onchain products, (2) bring our customers into the cryptoeconomy, and (3) increase Coinbase’s investment in core crypto infrastructure. Interestingly, while Base is obviously incubated inside of Coinbase, they are “deeply committed to progressing towards full decentralization over the years ahead.” Possible? Yes. Probable? We’ll see. Anyway, one confirmed win: no new token! Read more in their Mirror post.
An aside: Ray Zhu posted a really interesting (and highly controversial) thread about what’s (potentially) in it for Coinbase. Spoiler alert: It’s highly concerning.
⌛️ On-chain Proposals
On-chain DAOs are decentralized autonomous organizations that operate entirely on the blockchain, using smart contracts and other blockchain-based technologies for its operations and decision-making processes. Tally believes that true DAOs operate on-chain.
NounsDAO
Summary: This is a bit of a controversial one with the previous “Function Props” proposal. This one is a resubmission with a few tweaks: an explained of the feedback-adjusted aims and advantages of the project and the inclusion of two additional deliverables (and a bit higher ask for this reason).
Voting ends: March 6th
Summary: 95 ETH of funding to continue developing House of Nouns for the next 5 months (60% reduced budget from the initial proposal). Most importantly: the end product will be open source, so anyone can host, build on top of, and monetize HoN.
Voting ends: March 9th
Summary: $125k to create a Nouns movie from start to finish in 90 days.
Voting ends: March 11th
📝 10 Things To Read or Listen To
Article: “Some personal user experiences” by Vitalik Buterin
Article: “Introducing Base: Coinbase’s L2 Network” by Coinbase
Article: “Offshoring Crypto hurts the financial system” by Brian Armstrong
Article: “Governance as Conflict” by BlockScience
Article: “Ethereum’s Regens Tend to Ethereum’s Public Goods” by Dr. Paul J. Dylan-Ennis and Scott Moore
Article: “Nouns DAO and the Philosophy of Governance” by 0xBobateas
Thread: “ChatGPT breaks down the current state of DAO governance” by BanklessDAO
Thread: “Breaking down Coinbase’s "‘Build on Base’” by Messari
Twitter Space: “Current State and Future of DAOs w/ Linda Xie” by Syndicated Talks
Podcast: “Reviving trust in crypto w/ Ria Bhutoria” from On the Other Side
🤭 Meme of the Week
The team loved meeting everyone in Denver! If you missed us and wanna get your DAO on-chain, hit us up in Twitter DMs! See ya next week, peepz :)
p.s.- Beach vibes in Australia while most of you guys froze in Denver ;) (jk—I’m just feeling the FOMO and very much would cop the cold temperatures to get in on the fun). Also, is this a massive jellyfish or an octopus?
