Kyber network's main utility is the fees collected from token swaps. A part of that is burned which is similar to dividends sent to shareholders. The burn decreases the supply of Kyber tokens.
It is similar to how Binance Coin, BNB is burned. But the difference is that Binance only burns 20% of profits and 80% is kept by them. Kyber on the other hand, burns upto 95% of the fees collected.
Yes, Kyber burns upto 95% of the fees collected.
As an example, for a trade volume of 10 ETH with a 0.01% fee, a corresponding 0.001 ETH worth of KNC will be paid by the chosen reserve to KyberNetwork as a fee for the use of the reserve dashboard and access to network users. Suppose the rate of KNC at the trading time is 1 KNC for 0.1 ETH, the reserve needs to pay 0.01 KNC to the Kyber platform. The wallet/ website that helped the user initiate the trade will get, supposedly, 5% of the fees, or 0.0005 KNC. The remaining 95% of the fees, or 0.0095 KNC will be burned and cease to exist in the entire ecosystem.
https://blog.kyber.network/kybernetworks-token-sale-terms-overview-de031ce9738e