In most “buyback-and-burn” token models, a network generates income in one currency token and uses the proceeds to buy-back and “burn” its own native token. The intent is to grow token value by reducing its supply as income grows. Buybacks tend to accomplish that goal, but burning affects currency and capital assets in different ways. When it comes to money, reducing the supply does theoretically increase the unit value of currency assets. But when it comes to capital assets like governance tokens, issuance is key to capitalization and burning can get in the way of growing fundamental value.