Vitalik Buterin Challenges Ethereum’s Ultrasound Money Idea

Vitalik Buterin no longer wants the value of ETH to depend mainly on the fees burned by Ethereum. His reasoning resolves a contradiction that has become central : the network cannot simultaneously make its transactions cheaper and rely on high fees to support the token’s scarcity. Since the introduction of EIP-1559 in 2021, a portion of the fees paid on Ethereum is permanently burned . This mechanism fueled the thesis of “the ultrasound money” . When burns exceed the emissions paid to validators, the supply of ETH decreases. Vitalik Buterin now believes this mechanism should no longer be the core of the token’s valuation.

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