The Ethereum Foundation is out celebrating the creation of a new Proof-of-Burn (PoB) token dubbed BETH. Noteworthy, this is the product of the tokenization of burned Ethereum (ETH). Some crypto enthusiasts described this new development as a game-changer for burn mechanisms and incentives. Tokenization of Burned ETH to Retain Value On August 28, the Ethereum Foundation made a post on X highlighting the debut of the Proof-of-Burn mechanism. Before now, the Ethereum network has recorded the incineration of billions of ETH every year. However, such exercises were hardly profitable as the value vanished into the void. To salvage this situation, the ecosystem chose to launch BETH or burn ETH. With BETH, which has now gone live, the value of billions of burned Ethereum is now tokenized. Wu Blockchain claimed that a unit of BETH is ETH that has been verified as being out of circulation. This will lead to the presentation of transparent and auditable burn records. Joseph Lubin, Ethereum co-founder and ConsenSys CEO, says the ETH burning will translate to a highly profitable activity. Ethereum Price Grows, BTC Drops There are plans to return to the development desk and improve BETH, probably to roll out BBETH and BBBeth tokens. Meanwhile, the ETH price is in the green zone amid a broader crypto market downtrend. Even flagship cryptocurrency Bitcoin (BTC) is steadily recording losses in market value as it has not gone to around $108,000. ETH price is 2.08% high at $4,456.51, with a market capitalization of $537.93 billion. On the other hand, its 24-hour trading volume is in the red zone. This key metric is approximately $25.02 billion at the moment, with a 22.88% dip representing mixed signals from traders. Tokenization of Assets Requires Comprehensive Regulation Ethereum Foundation’s move to tokenize burned ETH is a reflection of the traction that the tokenization of assets is gaining. On this premise, it has become necessary that robust regulations be created around these assets. Less than a week ago, Kraken held discussions with the United States Securities and Exchange Commission (SEC) Crypto Task Force. Their discussion was largely focused on the regulatory framework for tokenized assets and the operation of a tokenized trading system. Precisely, they talked about the legal framework for tokenization, the structure of a tokenized trading platform, and its potential benefits for investors and markets. This way, Kraken hopes to bridge the gaps in investor protections compared with established stock exchanges. The post Ethereum Foundation Announces the Launch of its Tokenized Burned ETH appeared first on TheCoinrise.com .
