Almost correct!
Though the system consists of 2 tokens. BETH which is 1:1 ERC-20 receipt of burnt ETH, and WORM which has a limited cap & limited emission of 50 WORM per 30 minutes which can be mined by consuming BETH :)
So the receipt-token is converted to the WORM so it becomes untraceable, kind of like tornado cash. Do you mean mined or just converted? Mined kind of implies a lottery-like system to me.
Burn ETH to get a receipt-token that says you burned ETH. The private receipt-token you receive is valuable because:
It cost real ETH to mint
It’s untraceable and scarce
It can be traded, used, or staked
It opens access to private ecosystems (like voting)