The rules are simple
2) Each time a Bomb is transferred, 1% of the transaction is destroyed.
3) There will never be newly minted Bomb.
if all BOMB tokens have been destroyed, then what do we hold later? surely our money will be destroyed along with the token, ridiculous
I believe you are confused. Transactions are only destroyed if
you send them. Don't send them and your tokens won't be destroyed. You hold what you want. If everyone decides to burn/destroy theirs, your stake in the network will only increase.