$BOB chooses to implement LP Burn instead of Token Burn. What is the difference between Token Burn and LP Burn?

With LP Burn, $BOB burns the LP token from adding liquidity to the DEX. This means that the BOB liquidity in the pool will be permanently locked and cannot be withdrawn by the developer. The impact is that holders feel more secure because the risk of a rug pull does not exist, since after adding liquidity, the developer has also renounced ownership. BOB will always have a trading pair, so transactions can continue as no one can withdraw the liquidity pool.

On the other hand, BOB does not perform a Token Burn because the token's smart contract does not have a mint or burn function. This means that the total supply of BOB tokens neither decreases nor increases. The price of BOB is not determined by deflationary mechanisms, but purely depends on market demand. Again, BOB implements LP Burn, not Token Burn.

So you need to be able to differentiate between the two.

The strategy of BOB is to emphasize the security and trust of holders by locking liquidity through LP Burn. However, unlike tokens that rely on Token Burn to create scarcity, BOB does not use this method. The value of BOB is determined more by adoption and market activity, not by reducing supply.

Therefore, everything applied here is based on the logic of smart contracts and should not be equated with human logic.

The logic of smart contracts, once deployed, cannot be reversed.

Human logic, after signing a contract, can still be undone by certain mechanisms.

If you have coding knowledge in the Solidity programming language, you will understand how this logic works.