Increasing scarcity through burn mechanisms works for store of value and monetary assets but it is problematic for capital assets (such as governance tokens). Issuance is key to capitalization and burning can hamper the growth of fundamental value.

>"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"