BASE Dev Fund Liquidation — Transparency Statement
Base Protocol is releasing this statement as a disclosure / proposal to the community for a future liquidation of $1.2M in BASE to support large-scale development and growth initiatives. This liquidation will be executed responsibly, in small batches across multiple days.
As a note, this is not a liquidation of any locked team tokens. This comes from the BASE Foundation Dev Pool — a fund that is capitalized at positive rebases. The dev pool has been outlined in detail in the whitepaper (4.3) from day 1:
“The foundation is only supported following supply expansions (market cap growth) that indicate BASE adoption. This ensures that the foundation has the means to support further development proportionate to growth in the network.”
Foundation issuances are only administered when new adoption occurs and diminish as the protocol reaches its final state. These rebase issuances are an algorithmic, sustainable, and transparent way to support BASE growth and development.
As the Base Foundation elects to liquidate tokens from this fund, there will always be a transparency statement (like this one) released ahead of time. The Base Foundation will never liquidate tokens from this fund without first notifying the community.
Understanding the Liquidation
Base Protocol executed a $1.35M presale which reflected a total BASE supply valuation of $2.7M at launch.
Base Protocol is now electing to liquidate $1.2M in BASE with a total BASE supply valuation that is well over $150M.
The presale fundraise cap was budgeted to sustain/survive for at least 3 years under worst-case scenarios. This new liquidation helps ensure that BASE will not only survive, but thrive and grow for the long run.
It is important to understand that these funds will be used to support major, game-changing initiatives and developments for the protocol. From partnerships to dev hiring and more — these funds are all being reinvested into Base Protocol; a devops engineer, two full-stack engineers, future security audits, on-chain operations, infrastructure costs, a top-tier exchange listing and even community management hires.
Transparency and Approval
We believe this is the most responsible thing to do for the future of the Base Protocol ecosystem. However, if there are overwhelming objections from the community following the release of this article, we can postpone and make a proposal later. In holding ourselves to the highest standard of transparency — all liquidations will come with a statement and proposal like this one.
We strongly believe that Base Protocol can become one of the most impactful projects in the crypto space, and we want to make sure the resources are there to do that.
Drop a comment in the BASE Telegram and share your feedback.
Also, we hope you guys are enjoying a smoother experience since the release of the Cascade 1.1 Patch.
Get ready for the next Splash, today 🌊👨🌾💸
