Vitalik says ETH’s positioning should shift from “a token burned for transaction fees” to a store of value.
In a post on November 8, he said EIP-1559 and the burn mechanism should be retained; there is no need to worry even if the amount burned remains below 10% of the break-even level over the long term. He believes the burns in 2021–2023 mainly came from use cases within the crypto ecosystem and were never a true valuation floor.
· To support a market capitalization of around $270 billion through token burns, Ethereum would need about 700,000 ETH a year in protocol-level research and development funding, as well as interventionist governance—both of which conflict with its goals of decentralization and censorship resistance.
Which matters more to you: burn figures, or ETH’s stability as a store of value?
$ETH
In a post on November 8, he said EIP-1559 and the burn mechanism should be retained; there is no need to worry even if the amount burned remains below 10% of the break-even level over the long term. He believes the burns in 2021–2023 mainly came from use cases within the crypto ecosystem and were never a true valuation floor.
· To support a market capitalization of around $270 billion through token burns, Ethereum would need about 700,000 ETH a year in protocol-level research and development funding, as well as interventionist governance—both of which conflict with its goals of decentralization and censorship resistance.
Which matters more to you: burn figures, or ETH’s stability as a store of value?
$ETH
