Vitalik tweeted yesterday: Ethereum (ETH) should be treated as an “asset for storing value (SoV, store of value),” which is more meaningful than treating it simply as a “token used to pay transaction fees and then burned.”

There are three main reasons:

1. If ETH is only used to pay transaction fees and then burned, the benefits of this approach aren’t nearly as significant as people imagine.

2. If ETH is specifically optimized as a “fee-burning token,” Ethereum’s mode of operation can easily conflict with decentralization (a core feature of Ethereum), making it difficult to strike a good balance.

3. Conversely, optimizing ETH toward becoming a “store-of-value asset” aligns with Ethereum’s original purpose and lets it make the most of its decentralization and the unique strengths of the CROPS framework.

On EIP-1559 (the fee-burning mechanism)

Vitalik’s view:

There’s nothing wrong with EIP-1559 (the rule that burns part of the fees) itself, and it can remain in place.

Even if, over the long term, the amount of ETH burned through fees is very low (or even less than 10% of the break-even point), there’s no need to be disappointed.

ETH’s value doesn’t depend on fee burning in the first place; its value comes from elsewhere.

Vitalik’s core point:

The main reason people are bullish on Ethereum is its decentralization and the CROPS framework.

The most tangible benefit these features bring is stability.

Turning ETH into an asset that can store value (SoV) isn’t some impractical concept or gimmick added out of thin air; it’s a real, tangible advantage for investors who put their money in.

Especially in this era of rapid AI-driven change, stability will become particularly precious.