Ethereum co-founder Vitalik Buterin wants the network to position ETH as a store of value rather than an asset whose value depends on burning transaction fees. He nevertheless supports retaining the EIP-1559 mechanism, arguing that fee burns do not need to offset issuance to keep ETH economically sustainable. He estimates that a protocol requiring around 700,000 ETH annually to support ETH’s roughly $270 billion market capitalization could threaten Ethereum’s decentralization. Fee burns currently account for only 2.07% of new issuance, resulting in net growth of ETH’s total supply. Buterin is therefore relying on the network’s decentralization and credible neutrality, even as more activity shifts to Layer 2 networks and ETH supply continues to expand.
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