Base’s Cobalt Upgrade Lets Token Issuers Move Seized Balances Instead of Burning Them

AI summary of the source article

Base, Coinbase’s layer-2 network, has deployed its Cobalt upgrade on mainnet. A primary feature is the seizeWithMemo tool for the native B20 token standard, allowing authorized administrators to move seized balances to recovery wallets with an onchain note, deprecating the previous burn-only function. Additionally, Cobalt lets issuers combine two to four allowlists or blocklists using AND or OR logic, evaluating them live during transfers. The upgrade also introduces Validity Transactions, which keep traders' submissions private until specified conditions are met, alongside plans to reduce block times from two seconds to 200 milliseconds in the coming months.

Why it matters

The upgrade gives token issuers an opt-in recovery mechanism to reallocate seized funds instead of destroying them, and enables live enforcement of multiple compliance lists without relying on offchain copies.

Key facts

• Base's Cobalt upgrade introduces seizeWithMemo, enabling B20 token issuers to transfer seized tokens to another wallet instead of burning them.
• Issuers can combine two to four allowlists or blocklists using live AND/OR logic that updates dynamically upon transfer checks.
• Cobalt adds Validity Transactions with conditional execution criteria and precedes upcoming plans to lower block times to 200 milliseconds.