# @VitalikButerin: ETH as store of value makes more sense than fee-burning token

Source: https://x.com/VitalikButerin/status/2119401255919604064
Kiwi News: https://news.kiwistand.com/stories/VitalikButerin-ETH-as-store-of-value-makes-more-sense-than-fee-burning-token?index=0x6af076091d878927522dc0419db2721733a4d9372ee8a92a1776501879453a7130179fd2
Submitted by tim on 2026-11-08 UTC, 1 upvote, 0 comments

## Summary

Vitalik Buterin argues that Ethereum should focus on ETH as a store of value rather than as a fee-burning token. He says the fee-burning case was never as strong as it seemed, and that optimizing for it would require Ethereum and ETH to function in ways that are hard to reconcile with decentralization and capture resistance. He says a store-of-value focus fits Ethereum's strengths of decentralization and CROPS, which he links to stability that asset holders value. He adds that EIP-1559 and its burn should be kept, and that the value of ETH comes from elsewhere even if fee burn stays below 10% of breakeven indefinitely.

## Article

Expanding on why I believe "ETH as store of value (SoV)" makes much more sense to focus on than "ETH as fee-burning token".

Three primary reasons:

1. ETH as fee-burning token never was as strong as it seemed
2. Optimizing for ETH as fee-burning token would demand Ethereum and ETH function in ways that are very hard to make compatible with decentralization and capture resistance.
3. Meanwhile, optimizing for ETH as SoV is aligned with Ethereum focusing on its unique strengths (decentralization and CROPS)

EIP-1559 (including its burn) is fine and good, we should keep them. But we should not feel sad if fee burn is < 10% of breakeven indefinitely; the value of ETH comes from elsewhere.

The core idea: the big thing that people appreciate about Ethereum is decentralization and CROPS. The main pragmatic benefit that these things translate into is stability. SoV is the category where that is not an unneeded extra we merely put effort into for ideological reasons, but rather a pragmatic strength from the perspective of people putting in their assets. And in the era of AI disruption, stability will be highly valued.