Summary
- Ethereum does not just disappear after token burn, it can be issued in the form of Burned ETH or BETH.
- The Ethereum Community Foundation’s Zak Cole created BETH to keep a tokenized record or proof of burns.
- BETH is not redeemable for Ethereum at any point in the future; it is simply a receipt for burned Ether, raising questions about its value.
- Ethereum co-founder Joseph Lubin believes BETH will see community adoption in the future.
- It remains to be seen how the market prices BETH and whether the token drives demand among Ethereum holders.
Ethereum’s EIP-1559 upgrade has led to the burn of 1.99 million Ether tokens, worth $8.8 billion. The burn mechanism consistently pulls Ether from the supply, contributing to the increase in the value of the remaining tokens in circulation. The latest development in the burn mechanism is the issuance of Burned ETH, BETH token. BETH is the tokenized proof of Ethereum burn, issued as an immutable ERC-20 token.
Table of Contents
Burn Ethereum, get token
Ethereum’s (ETH) burn mechanism kicked in with the August 2021 upgrade. EIP-1559 instilled a burn mechanism to permanently remove the ETH base fee from circulation, effectively reducing the circulating supply of the token.
The mechanism has led to a whopping 1.99 million ETH tokens burnt to date, valued at $8.8 billion at the time of writing. Until recently, burning Ethereum meant losing the token to the void, no redemption allowed.
However, Zak Cole of the Ethereum Community Foundation created BETH, a token that represents Burned ETH. BETH is a tokenized representation and can be considered a record of burned Ethereum.
BETH cannot be redeemed for Ethereum at any point in time; however, it is an ERC-20 with a value of its own.
BETH has introduced levels to burning Ethereum now, bringing new ways for Ethereum holders to benefit from the token. At the network level, Ethereum supply will be reduced with the burn mechanism
Go to Source to See Full Article
Author: Ekta Mourya
