# Coinbase Base achieves Stage 1 rollup status reducing centralization

**Published:** 2026-07-05T16:29:25.055Z  
**Topic:** Coinbase  
**Sentiment:** neutral  
**Publisher:** TrendWatcher — https://www.trendwatcher.in/article/c568cd52-9186-45d0-8968-5606aa6f24f9

Coinbase’s Base layer‑2 is now a “stage 1” rollup with a 10‑member security council and permissionless fault proofs, cutting reliance on Coinbase and locking

Coinbase’s Base network was officially classified as a “stage 1” rollup on April 29, 2025, marking its first step toward full decentralization and adding a ten‑member security council to oversee network upgrades【1】. The upgrade lowers the protocol’s dependence on Coinbase, a key concern for investors tracking the security of large‑scale rollups.

| At a glance | |
|---|---|
| Rollup stage | Stage 1 (first decentralization milestone) |
| Security council | 10 independent entities worldwide |
| Locked value | $11.72 bn (largest rollup per L2Beat) |
| Fault proofs | Permissionless, anyone can verify transactions |

## Decentralization milestone  
Base’s transition to stage 1 follows a framework introduced by Ethereum co‑founder Vitalik Buterin, which grades rollups on their degree of decentralization. Stage 1 rollups retain “limited training wheels” – they rely on a small set of guardrails such as a security council to approve critical upgrades, but they already allow permissionless fault proofs, meaning any participant can verify the state of transactions without a central authority【1】. This move aligns Base with other layer‑2 networks that have already reached the same milestone, signaling a broader industry shift away from centralized control.

## Scale and market impact  
At launch in August 2022, Base was built by the centralized exchange Coinbase. Since then, it has become the largest rollup, with $11.72 bn locked in the protocol according to L2Beat data cited by CoinDesk【1】. By reducing reliance on Coinbase through the security council and open fault proofs, Base aims to attract more developers and users who prioritize decentralization, potentially expanding its market share relative to competing rollups that remain more centralized.

| Metric | Value |
|---|---|
| Locked value | $11.72 bn |
| Security council members | 10 |
| Launch date | August 2022 |

## What to watch  
- **Further decentralization steps** – progression to stage 2 rollup status, which would remove the remaining “training wheels.”  
- **Governance proposals** – any upcoming votes that the security council must approve, indicating how quickly decision‑making may shift off‑chain.  
- **On‑chain activity** – volume of permissionless fault proof submissions, which will signal the network’s robustness under the new model.  

Base’s stage 1 designation reduces the centralization risk that has long shadowed large rollups, but the network’s future trajectory will depend on how quickly it can move to deeper decentralization and how the security council manages upgrade governance.

## Sources
1. CoinDesk — [Coinbase’s Base Network Achieves ‘Stage 1’ Status, Reducing Centralization Risk](https://www.coindesk.com/tech/2025/04/29/coinbases-base-network-achieves-stage-1-status-reducing-centralization-risk)
2. CNBC — [Coinbase earnings top estimates, helped by robust trading volume](https://www.cnbc.com/2025/10/30/coinbase-shares-rise-on-third-quarter-earnings-beat-.html)
3. CoinDesk — [Coinbase says three areas will dominate the crypto market in 2026](https://www.coindesk.com/markets/2025/12/28/coinbase-says-three-areas-will-dominate-the-crypto-market-in-2026)

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Cite as: TrendWatcher, "Coinbase Base achieves Stage 1 rollup status reducing centralization", https://www.trendwatcher.in/article/c568cd52-9186-45d0-8968-5606aa6f24f9