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The Ethereum Community Foundation has presented Beth, a burning test token that represents ETH destroyed. This has caused a debate about the issue of scarcity, governance and monetary design of Ethereum.
Ethereum’s [ETH] The ecosystem and interested parties are now dedicated to a heated debate After the Ethereum Community Foundation (ECF) introduced Beth, a new token designed to represent ETH burned.
Unlike the missing currencies locked by EIP-1559 and other burns mechanisms, Beth is a burning test tab. Will provide a negotiable representation in Ethereum chain that has already been permanently burned.
The Foundation said,
“Whether it is used in governance, incentives or new financial instruments, Beth provides a basis for experimentation.”
Added,
“As Ethereum continues to evolve, Beth highlights the role of scarcity and destruction as equally powerful forces along with creation and emission.”
The founder of ECF, Zak Cole, shares concerns
However, not everyone is happy. In fact, Ethereum Core developer and founder of ECF, Zak Cole, criticized Beth’s design when he said:
“Beth is to burn eth what is to wrap eth.”
Cole stressed that Beth could unlock a novel mechanic, including vote based on burns where influence comes from tokens and destroyed auctions where participants offered through the destruction of irreversible tokens. He also proposed spaces of expired names that require continuous burning to remain active.
In addition, Cole emphasized that users should treat Beth purely as an ETH receipt since burned, not as a new token with independent value.
He framed the initiative as an experiment to make Ethereum’s burn process more usable, instead of changing its economic foundations.
Ethereum Economic Model
The announcement comes at a time when Ethereum’s monetary policy remains under scrutiny.
From the London update in 2021, the network has burned approximately 4.6 million ETH. However, it has also issued more than 8 million new tokens during the same period.
This imbalance has fed questions about whether Ethereum can maintain a forced shortage trajectory or if the emission will continue to compensate for the burning rate.
And yet, not everyone sees this as a reason for concern.
Ethereum’s co -founder, Joseph Lubin, weighs …
For his part, Lubin expressed certain optimism, which suggests that developers are already experiencing with Beth in governance frames, incentive models and beyond.
He believes that the burning test could become his own industry, configuring new decentralized coordination modes and economic design.
“Burning ETH will be very lucrative, since it will generate industries. And something very funny, since it will become a popular mechanic in web 3 games. This is a way in which people will be paid to play on web3”.
At the time of writing this article, ETH was quoted at $ 4,471 on the lists, 2.06% more in the last 24 hours.
Its last increase coincided with the Ethereum Foundation (EF) revealing a new roadmap to improve the user experience of the system (UX) through broader cross chain operations and without problems.
