Staking is an interesting concept and getting the reward rate right is going to be tricky. To encourage staking, we need a rate that is attractive as otherwise, it would be safer to use DeFi to earn income on a stable coin.

If the stake reward is too high then this can cause a devaluation of the price of the coin as more coins flood into the market. Buring coins is one way to balance this so that you have a degree of liquidity and stop the devaluation of the coin.

However, to make staking long term profitable the coins also need a degree of stability, which will hopefully come one day with higher market caps. At the moment whales in the market can destroy any value very quickly.

I am personally optimistic for Ethereum 2 with a higher market cap, a relatively low inflation rate. Staking itself takes liquidity out of the market and that will put upwards pressure on the price.