Coinbase Launches Base Network and Calls for Developers to Build Inflation-Pegged Flatcoins

Summary

• Coinbase has launched the layer-2 network Base, and is calling on developers to build inflation-pegged “flatcoins” on it.
• The platform also wants devs to create an on-chain reputation system, an on-chain limit order book (LOB) exchange, and DeFi safety tools.
• Inflation-tracking stablecoins are seen as increasingly important due to recent banking crises.

Coinbase’s New Base Network

Coinbase recently launched a new layer-2 network called Base. It is secured by Ethereum and powered by Optimism, another layer-2 network. The platform has now put out a call for builders looking to make the onchain economy grow. They have identified four areas they would like developers to explore in particular: an inflation-pegged flatcoin, an on-chain reputation system, an LOB exchange, and DeFi safety tools.

Flatcoins as an Inflation Hedge

Out of these four areas Coinbase believes it is particularly important for developers to focus their efforts on creating inflation tracking stablecoins – or ‘flatcoins’ – that will help protect consumers from economic uncertainty caused by legacy financial systems. Most stablecoins are currently pegged to a reference asset such as the U.S. dollar but flatcoins aim to be pegged to the “price of living” by tracking consumer price index data and inflation figures instead. Investor Ray Dalio also voiced his approval of this idea recently when he said he would like to see an “inflation linked coin” introduced so people can secure their buying power over time.

Base Ecosystem Fund

Coinbase has set up a fund called the Base Ecosystem Fund which will provide grants of up to $50 thousand for any project that fits into one of these four areas outlined above. This money will be used to cover development costs such as salaries, engineering costs and research expenses related directly with projects building solutions within these four categories. This fund gives Coinbase developers access not only capital but also mentorship from industry experts who can help guide them through their respective projects.

What’s Next? It remains unclear how long it will take before we start seeing meaningful results from these initiatives but this announcement does mark a significant step forward for cryptocurrency adoption as more businesses begin utilizing decentralized technology solutions in their day-to-day operations. With platforms like Coinbase offering incentives that encourage talented developers create new solutions it won’t be long before things really start taking off in this space!