The ~145M DAO Treasury LSK was forced on the community. No one had a say in this. This came at the expense of all holders prior to the L2 migration. For context, before the migration, the total LSK supply was ~150M tokens. Now it’s 400M. The dilution is over 60%, which is substantial.
I doubt anyone truly believes burning tokens will cause the price to increase significantly. Rather, people want to burn them to reduce the dilution that was forced upon holders. The LSK token has been under very strong selling pressure for many years, and printing hundreds of millions more tokens doesn’t help this situation.
It’s not as if the Foundation lacks its own funds. They simply opted not to use them, instead placing the risk on the community.
The community has suffered a lot. There hasn’t been any good news for years, and as a result, the community is jaded. Burning tokens is seen as a way to compel the team to spend funds more effectively and perhaps use their own resources.
There’s little use for the 100M LSK if its value continues to decrease. Moreover, witnessing how the 2.5M LSK was spent on an airdrop campaign, which resulted in the worst possible outcome and generated negative publicity, hardly inspires confidence that these additional funds will be managed effectively.
Even after a potential burn, the DAO would still possess 45M LSK, plus any tokens remaining unclaimed after May 2026. If this amount isn’t sufficient to rejuvenate the ecosystem, an additional 100M LSK created from further dilution certainly won’t help either.