Ethereum

This VCM represents the ETH token's role as a token for blockspace purchases and the deflationary appreciation due to fee burning. Burnt fees originate from the base fees of each transaction included in a block; they are block-local and determined by historical block sizes (a size of a block is the volume of gas expended therein) and the target size. Each time a block exceeds the target size, the base fee is incremented by 12.5%.

This VCM represents the value accrued from running a validator participating in the active validation set:

• Risk Exposure: the user needs to stake at least 32 ETH to be included in the active set.
• Conditional Action: a requirement to correctly run and maintain the validator node
• Future Cashflow: validators receive emissions from participation in the consensus and additional rewards from priority fees and MEV captured in proposed blocks.