Burning lunac/ustc via staking

In staking classic luna on the TerraStation validators,

:fire: LUNAC DAO​:fire: & USTC BuyBack :fire:

are the earnings then burned, thus reducing inflated supply?

If so, what if the earnings return, for these validators, was set to 12,000% APY? Wouldn’t that burn 1 Billion lunac for every 1 Million staked, every 28 day epoch?

Could an incentive be created to encourage luna holders in the community to stake their tokens with these validators, to accerlerate deflation?

Or would that be too aggressive to control, and require substantial coding and certification testing before implementing?

Just curious.