BETH

The primary function of BETH by its design is to serve as a ERC-20 token proving a claim to a share of another asset. In this way, it is manifestly a value transfer token to be used on the internal WORM market to procure WORM by minting.

It is, however, also an exact representation of burned ETH, which confers upon it a degree of ability to be used for transfer of value because it is both naturally made scarce and because its obtainment has an inherent cost denominated in ETH that is burnt (essentially being converted to BETH at a fixed rate).

As ETH burning proof generation and BETH minting are separate events that can be publicly associated with distinct addresses, BETH offers a pathway for privatisation of ETH into an asset whose provenance cannot be directly proven (albeit at the cost of the peg only working unidirectionally).

Moreover, the proof generation is necessarily done off-chain, which means that not only the provenance of BETH cannot be directly proven, but also that the ETH burning event is indistinguishable from someone burning ETH without minting BETH. In this way, the shielding guaratnees are even stronger because even entry into the process cannot be proven nor revealed from the burn proof upon its submission.