Burning out is a trap used by devs to trigger hype among investors by showcasing like lesser circulating supply.

I understand that this boom token will get burnt at 1% of transacting amount every time I make a transaction (please correct me if I am wrong). So, devs will not make any transaction so that they will not lose 1% on every transaction they are going to make. Or they will make daily 1000s of fake transactions to burn quickly so that they will keep attracting new investors. Both the cases are not good for a token economy nor for a project.

Because, they must focus on project development and must develop a real world applications to have real supporters for their project. This will definitely help in increasing value for their tokens. Instead of that, lazy devs will go for burning their own creations; definitely not sounding like a good deed.

Burning is somewhat similar to scamming. Do not fall for this.