Vitalik Buterin Says ETH Fee Burn Will Not Drive Ethereum's Value

Ethereum co-founder Vitalik Buterin says the network should focus on ETH as a store of value, not on its fee burn. The ETH fee burn, he argued, “never was as strong as it seemed.” In a thread on X, Buterin stressed that the burn introduced with EIP-1559 should stay. “But we should not feel sad if fee burn is < 10% of breakeven indefinitely; the value of ETH comes from elsewhere,” the co-founder wrote. Why the ETH Fee Burn Falls Short Buterin’s argument starts with a simple valuation model. Under it, a token’s market cap equals the fees burned divided by a discount rate. To justify a market cap of around $270 billion through burns alone, Ethereum would need to operate like a global corporation such as L’Oréal.

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