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

With LP Burn, $BOB burns LP tokens from adding liquidity to DEX. This means that the liquidity of BOB in the pool will be locked permanently and cannot be withdrawn by the developers. The impact is that holders feel safer because the risk of rugpull does not exist, as after adding liquidity, the developers have also relinquished ownership rights. BOB will always have a trading pair, so transactions can continue as no one can remove the liquidity pool.

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

Therefore, you must be able to distinguish between the two.

BOB's strategy is to emphasize the safety 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 that method. The value of BOB is determined more by market adoption and activity, not by supply reduction.$BOB