Ethereum co-founder Vitalik Buterin believes ETH should focus on its role as a store of value rather than positioning itself as a “fee-burning token.” He still supports maintaining EIP-1559 and the burn mechanism.

According to Buterin, there is no need to worry even if the amount of ETH burned remains below 10% of the breakeven level over the long term. He believes that burn activity from 2021 to 2023 came mainly from applications within the crypto sector and never created a genuine valuation floor.

Buterin said that if Ethereum relied on the burn mechanism to support a market capitalization of around $270 billion, it would need about 700,000 ETH per year to fund research and development within the protocol. This approach would also require an interventionist governance mechanism, which conflicts with the goals of decentralization and censorship resistance.

Source: https://tintucbitcoin.com/vitalik-eth-nen-tap-trung-luu-tru-gia-tri-khong-dua-vao-dot-phi/

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