Vitalik Buterin argued that rather than tying ETH’s value to fee burns, the focus should be on its role in storing value and Ethereum’s core features.
According to a November 8 post by Wu Blockchain, Buterin said that burning transaction fees does not provide as strong a foundation for ETH’s value as many assume. He said that trying to maximize fee revenue could conflict with decentralization and resistance to censorship or capture.
Buterin listed decentralization, along with the properties he calls CROPS—censorship resistance, open source, privacy, and security—among Ethereum’s strengths. He said these qualities are more aligned with ETH’s position as a store of value.
According to Buterin, factors other than fee burns can also support ETH’s value
Buterin said that in the long term, fee burns remaining below 10% of the break-even level should not be a cause for concern on their own.
Not investment advice.