The Ethereum Community Foundation has introduced the new BETH token aimed at reinforcing the concept of ETH burning and increasing its scarcity.
What is BETH?
BETH is a token representing burned ETH, ensuring transparency and accountability in the process. Each 1 BETH corresponds to 1 ETH that has been officially removed from circulation.
How BETH Works
According to the established rules, when users send ETH to a smart contract, that ETH is permanently redirected to a 'burn' address, and the same amount of BETH is minted in return, which is then sent back to the sender. This mechanism operates on the principle of 'send 1 ETH, burn 1 ETH, receive 1 BETH.'
Economic Significance of BETH Token
Ethereum co-founder and ConsenSys CEO Joseph Lubin stated that this new mechanism holds great economic potential, noting, 'ETH burning will become an extremely profitable activity.' BETH not only reduces the supply of ETH but also opens up new opportunities for applications in governance, incentives, and financial instruments.
The launch of the BETH token is a step towards reducing the supply of ETH and creating new opportunities within the Ethereum ecosystem, highlighting the importance of burning and scarcity concepts.
