How Does the Burning Mechanism Contribute to the "Store of Value" Narrative for Ethereum? ▴ Learn

How Does the Burning Mechanism Contribute to the “Store of Value” Narrative for Ethereum?

The burning mechanism, particularly the base fee burn under EIP-1559, introduces a deflationary pressure on Ether (ETH). As ETH is consumed and removed from circulation, the total supply decreases, or its growth rate slows significantly.

This scarcity, combined with the asset's utility as the fuel for the global computation layer, strengthens the argument that ETH is a robust, potentially deflationary, "store of value."

What Is the Difference between a Fixed-Supply and a Deflationary Token Model?

What Is ‘Token Burning’ and How Does It Affect the Total Supply?

How Does the Burning of the ‘Base Fee’ under EIP-1559 Affect the Supply of Ether?

What Is the Impact of a Deflationary Vs. Inflationary Token Model?