BETH – A New Value Layer from Ethereum’s Burn Mechanism
Ethereum’s transaction fee burning mechanism, initiated with the EIP-1559 upgrade, has created a significant turning point for the network. More than 1.99 million ETH – worth nearly $9 billion – have been permanently removed from the circulating supply. But instead of just “disappearing into thin air”, a new initiative called Burned ETH (BETH) is opening up a different approach: turning the act of burning tokens into a tradable proof-of-concept asset.
Burn ETH – Receive BETH
Instead of simply sending ETH to a “black hole” address, users can now receive BETH – an immutable ERC-20 token. Each ETH burned corresponds to 1 BETH issued. BETH acts as an on-chain receipt, proving that the burn transaction actually took place and that the ETH has disappeared from the market forever.
What BETH Means
The unique thing about BETH is that it cannot be converted back to ETH, meaning that once burned, ETH is lost. But that makes BETH a transparent proof of Ethereum's increasing scarcity. Developers and the community are hoping that BETH can be used in many DeFi or Layer 2 applications, such as as proof of governance participation or integrated into a proof-of-burn mechanism.
Potential Value
Currently, BETH does not have a clear market price and only less than 500 BETH have been minted. However, this idea could open up a new layer of value: turning token burning into a form of creating a proof of asset, instead of just reducing supply. If recognized by exchanges and DeFi projects, BETH could completely move towards its own pricing model, even pegged close to 1:1 to ETH as a form of "certificate of scarcity".
Long-term Impact
As Ethereum gains more institutional and institutional interest, the burn mechanism has become a central element in how the market values ETH. Adding BETH as a scarcity-proof derivative could deepen the Ethereum market and further solidify its role as a deflationary asset.
👉 Think of BETH as an “invoice NFT” for burning ETH – both transparent and opening up new opportunities for use in DeFi. If widely adopted, it could be the next big piece in the Ethereum ecosystem.
