The introduction of gas fee burning mode in 1559 will certainly cater to some people’s pursuit of so-called deflation, but the motivation behind it has to be said that Vitalik and the Ethereum Foundation are further promoting PoS and even ETH. 2.0 strategic thinking.

Now Ethereum has introduced a burning mechanism to hedge the issuance of block rewards, so we feel that this mechanism makes Ethereum harder. However, what Ethereum burns and destroys is the stock S. The continuous consumption of the stock S will reduce the hardness (similar to the consumption of gold reserves by the electronics industry), making the incremental impact larger, which is not conducive to the stability of the currency value.

Introduction

As we all know, Ethereum does not have a fixed and predictable monetary policy, which is the worst monetary policy (from a game theory perspective). After implementation in 1559, delta F is assumed to be a fixed block reward unless Vitalik and the Foundation decide to change it.

Then, continued consumption of stock at a constant increment will make Ethereum less resistant to shocks, make its currency more unstable, and more volatile, making it even less suitable as a store of value.