Star Finance Whitepaper

The StarFire

2% of all $STAR traded are burnt in The Star Fire. The more that is traded, the more get put into the fire causing the fire pit to grow in size, larger and larger through self fulfilling Auto-Compounding, reducing the circulating supply and keeping the Star Finance protocol stable.
The other benefit to an everlasting burn of circulating supply is that due to the deflationary nature of it, equates to a higher value of each $STAR token, therefore increasing the individual value.