It's a good explanation. I tend to think of it more as supply and demand. It depends on how much the inflation happens to the value backing the token. In the case of CTPSB, I think any bought would go directly into HP. So that value per token doesn't really go down and burning will just help reduce the amount of CTPSB circulating.
The market maker of CTPSB is a kind of buffer that gives stability to the project. If people buy CTPSB they actually buy it from the market maker and the supply doesn't change. It's only when the market maker is running out of tokens that the supply changes.