How Does a Token Burn Mechanism Affect the DCF Calculation for a Utility Token?

A token burn mechanism reduces the total supply of the token, which can be modeled in a DCF as an increase in the cash flow per remaining token. By permanently removing tokens from circulation, it creates a deflationary effect, increasing the scarcity and value of each token.

The burn rate must be factored into the circulating supply projection to accurately calculate the future cash flow that accrues to each token.