Ethereum Foundation Launches BETH Token to Audit 4.6M Burned ETH
Ethereum Community Foundation has launched BETH, a new ERC-20 token that issues a 1:1 on-chain receipt for ETH burned under EIP-1559, formalizing proof-of-burn and auditing over 4.6 million destroyed ETH. While BETH carries no inherent token value, developers can integrate it into governance voting, deflationary auctions and expiring namespaces. Since the London hard fork in August 2021, net issuance of ETH stands at 3.8 million against 4.6 million burned, fueling a scarcity debate. To date, 0.339 BETH has been minted. Traders should treat BETH strictly as a burn receipt, note smart-contract risks and not conflate it with native ETH.
Neutral
The launch of BETH formalizes proof-of-burn and improves transparency for destroyed ETH, but does not change Ethereum’s supply dynamics or introduce a liquid asset with inherent value. In the short term, BETH trading volumes are likely to remain low as traders treat it strictly as a receipt token. Over the long term, BETH could enable novel burn-based DeFi mechanisms, supporting a deflationary narrative, but its impact on ETH price is expected to be limited. Hence, the overall market reaction should be neutral.