While projects themselves gain significant advantages from burning their tokens, the process isn’t a zero-sum game. Token holders also benefit in several ways from the process.
It may seem like token burns are designed to give projects an edge, but the reality is that the mechanism is beneficial to both developers and investors. In many cases, burning tokens can help stabilize a coin’s value and curb potential price inflation. The stability gives investors a greater incentive to hold the coins and keeps prices at more favorable rates, which therefore keeps network uptime and bandwidth healthy. Token burns also project a sense of confidence and reliability, especially at early stages of a coin’s development.