Why are Ethereum tokens burned?
Burning ETH tokens is the process of permanently removing a portion of cryptocurrency from
circulation. This reduces the total supply, which can help increase or stabilize ETH’s value by
creating scarcity.
How does burning affect the ETH price?
When demand for Ethereum remains steady or increases, and the supply decreases due to burning, the
price can rise. This is a basic economic principle: the fewer tokens available, the more valuable
they become.
Who decides to burn ETH tokens?
In Ethereum, token burning is protocol-driven. With the EIP-1559 upgrade, a portion of transaction
fees is automatically burned, making the process decentralized and transparent.
Anyone can burn ETH by sending tokens to the address
0x0000000000000000000000000000000000000000,
effectively removing them from circulation. However, our organization coordinates this process on a
larger scale, making it more organized, transparent, and automated.
Does this make Ethereum deflationary?
At times, yes. If the amount of ETH being burned exceeds the amount issued as validator rewards,
then ETH becomes a deflationary asset. We want to make it just more deflationary.
How is the organization funded?
Our operations are funded through community donations and staking node rewards. These sources ensure
the sustainability of our mission without relying on profit-driven mechanisms.
Will there be a DAO to manage the project?
Yes. A decentralized autonomous organization (DAO) will be established to make collective decisions
on key matters such as burn volumes and other governance issues. This ensures transparency,
community involvement, and decentralized control over the project's direction.
Are you sure you can make it work?
We're not completely sure — but we're going to try. We bring experience in finance, economics, and
infrastructure, and we're committed to giving it our best. Worst case? We burn all the tokens 🔥
