Burn the tokens: Ethereum creator wants the currency to be more rare

While the quantity of bitcoins is limited by 21 million coins, Ethereum has no such cap. Instead, Vitalik Buterin who created this currency in 2014 believes that restrictions on Ethereum-based projects would help to make Ethereum more valuable. Fees imposed will “burn” the tokens, and the leader of the Ethereum Foundation explains the need in the following terms:

“If the token is being burned, then you have an economic model that says the value of the token is the net present value of basically all future burnings,” he said. Otherwise, “it’s just a currency that goes up and down. It feels kind of like voodoo economics and the price of the token isn’t really backed by anything,” Buterin added. “That’s a very spooky thing.”

Another reason clearly seen is that Buterin wants to keep the market flowing instead of finding it overloaded with tokens. One can compare this token burning to how the paper money becomes worn out.

Unlike Satoshi Nakamoto whose real name we still cannot say for certain (although rumors have it that the U.S. government already knows who this is), V. Buterin is far from anonymous, actively promoting his project around the world. The statements above were made in Mexico, and during the end of this summer he was on tour in Southeast Asia.