Vitalik says ETH should stop relying on “fee burning” to support its valuation? His three reasons
Should ETH’s value be supported by “burning fees”? On November 8 (around 20:06 Beijing time), Vitalik posted a long thread answering the question: storing value (SoV) deserves more focus than “burning tokens through transaction fees.”
He gave three reasons:
1. Using fee burning to support valuation “has never looked as strong as it seems.” Much of the heavy burning from 2021 to 2023 came from demand within the crypto industry. When prices fall, that demand tends to shrink too, so it doesn’t provide a genuine floor.
2. To use burning to support its current market cap, Ethereum would have to spend money continuously and govern forcefully, like a large company. That would be hard to reconcile with decentralization and censorship resistance, and would push up gas fees.
3. Focusing on storing value better plays to Ethereum’s strengths: decentralization, censorship resistance, open source, privacy, and security.
He also said that EIP-1559 (including burning) is “great and should be kept.” But even if burning stays below 10% of the break-even threshold he set for the long term, there’s no need to be disappointed—ETH’s value comes from elsewhere.
Note: These are Vitalik’s personal views, not a protocol change or upgrade proposal, and they don’t indicate how the price of ETH will move.
#以太坊 #Vitalik #EIP1559
Should ETH’s value be supported by “burning fees”? On November 8 (around 20:06 Beijing time), Vitalik posted a long thread answering the question: storing value (SoV) deserves more focus than “burning tokens through transaction fees.”
He gave three reasons:
1. Using fee burning to support valuation “has never looked as strong as it seems.” Much of the heavy burning from 2021 to 2023 came from demand within the crypto industry. When prices fall, that demand tends to shrink too, so it doesn’t provide a genuine floor.
2. To use burning to support its current market cap, Ethereum would have to spend money continuously and govern forcefully, like a large company. That would be hard to reconcile with decentralization and censorship resistance, and would push up gas fees.
3. Focusing on storing value better plays to Ethereum’s strengths: decentralization, censorship resistance, open source, privacy, and security.
He also said that EIP-1559 (including burning) is “great and should be kept.” But even if burning stays below 10% of the break-even threshold he set for the long term, there’s no need to be disappointed—ETH’s value comes from elsewhere.
Note: These are Vitalik’s personal views, not a protocol change or upgrade proposal, and they don’t indicate how the price of ETH will move.
#以太坊 #Vitalik #EIP1559
