Centrifuge Treasury funds could be spent on any proposal, or activity which follows and satisfies CP58 - Treasury Spending Agreement.
Right now Centrifuge Councillors based on the already reached agreement and community support can decide if the proposal should be funded from Centrifuge Treasury.
With the upcoming transition from Gov1 to OpenGov Centrifuge Councillors will be removed and Centrifuge Treasury will be in full control of Centrifuge token holders.( Any Treasury Proposal should be approved by centrifuge token holders.)
Yes, the mechanism of burning was deployed, but not implemented yet so far.
More information you can find here: Poll: Increase transaction fees and implement token burn Sept 2022