It's becoming more common for projects to burn tokens to give the impression that they're going to appreciate in value, but it's not always a good idea.
This idea comes from shares where they are repurchased and then amortized to reduce their number. It's done because it's more tax-efficient than distributing dividends.
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But in the cryptocurrency world, this whole method has been exaggerated. For example, a project that launches and doesn't have the expected success, then the creators burn tokens to give a false sense of scarcity.
As I said at the beginning, it makes sense to burn tokens to improve tax efficiency, but there has to be demand for the token. If there isn't, it doesn't make sense to do it. So, burning tokens isn't fundamental. As with any project, the important thing is to generate demand; if there's demand, there won't be any need to burn tokens. Perhaps even more tokens will need to be printed. This is what companies do with capital increases to raise more resources.
