Part 3: Burn Baby Burn, Why Retention and Burn Rates Are Web3’s Ultimate Truth Serum

In a world of inflated metrics and illusionary growth, burn rates and retention metrics cut through the noise to reveal the protocols built to last.

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Burns Don’t Lie

In the chaos of Web3, where every protocol is shouting “Look at me!” with vanity metrics and buzzword-filled announcements, burn rates stand out as the unshakeable proof of real activity. Forget DAWs inflated by bots or trading volumes pumped up by wash trades—burns are the immutable receipts of blockchain economics. They’re the gas station stop on the road trip of utility, and unlike most metrics, you can’t fake a gas receipt.

Take Ethereum as the gold standard. Since EIP-1559 dropped, it’s been burning ETH like a Lambo guzzling premium fuel, with over 3 million ETH sacrificed to the blockchain gods. Those burns represent people minting NFTs, farming DeFi yields, or paying exorbitant gas fees to outpace MEV bots in the mempool. Each burn is tethered to real demand, proving Ethereum’s ecosystem is alive and thriving.

Now contrast that with some chains touting sky-high DAWs or trading volumes but whose burn rates look like they’re barely using a Zippo lighter. If the burn rate doesn’t match the hype, you’re not looking at growth—you’re looking at a network running on vibes and VC-fueled marketing. Burns aren’t just metrics; they’re a litmus test for whether a chain is delivering value or just selling dreams.