Ethereum co-founder Vitalik Buterin (@VitalikButerin) argued that the network should put more emphasis on Ether's ($ETH) role as a store of value, challenging the idea that token…
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Ethereum co-founder Vitalik Buterin (@VitalikButerin) argued that the network should put more emphasis on Ether's ($ETH) role as a store of value, challenging the idea that token burning should domina…
Ethereum co-founder Vitalik Buterin (@VitalikButerin) argued that the network should put more emphasis on Ether's ($ETH) role as a store of value, challenging the idea that token burning should dominate its investment narrative. In a Sunday thread, he said Ethereum should retain EIP-1559, the mechanism introduced in 2021 that destroys part of transaction fees. He also said supporters should not be discouraged if burning offsets less than 10% of new issuance indefinitely, because he believes the asset's value comes from broader strengths. Buterin questioned the assumption that transaction fees provide a dependable valuation floor. Much of Ethereum's earlier fee activity came from within the crypto economy, he argued. If demand and token prices fall together, the revenue supporting that supposed floor can weaken at the same time. He also warned that maximizing fee revenue could push Ethereum toward the behavior of a large corporation, with substantial spending and more interventionist governance. In his view, those pressures would conflict with decentralization and resistance to control by powerful interests. His alternative emphasizes censorship resistance, open-source development, privacy and security. He argues that those properties can make Ethereum useful for holding assets through technological disruption. The debate concerns what holders are paying for and which priorities developers should protect. It does not establish that Ether's market price will be stable or that the store-of-value thesis has already succeeded.
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