Why would someone "burn" their paragon?

Question

In Kittens Game in the Metaphysics tab, we have the option to

BURN YOUR PARAGON
Discard all paragon points

However, it takes a long time to get paragon points, so it seems odd to just "discard" them. Kittens Game Wiki writes:

As of 1.3.1.1 you can now burn paragon and gain a benefit from it. Burnt paragon work just as regular paragon, but has slightly different limits.

Every point of burnt paragon will give: (as of 1.4.0.7)

• 1% global production bonus (limit of +100% and diminishing returns at 75 before Dark Future, limit of +400% and diminishing returns at 300 during Dark Future)
• 0.05% storage capacity before Dark Future, +0.2% during Dark Future
• 0.05% auto production bonus (5% of the global production bonus)

The bonuses from regular and burnt paragon stack additively, so that if you have 150 regular paragon and 75 burnt paragon you will have a total paragon production bonus of +225%.

Burnt paragon also boosts the leader trait bonuses. The formula for the extra bonus is ( square root ( 1 + 8 * burnt paragon / 1000) - 1 ) / 2 which is then multiplied by the base effect. Philosophers only get 10% of this boost. This boost is subject to Diminishing Returns which come into effect beyond 52500 burnt paragon.

But it's not clear here what the difference is between burned paragon and ordinary paragon. The first item seems to be the same for both. I don't understand why someone would do burn their paragon.

Question: Why would someone "burn" their paragon?

Answer 1

1. Diminishing returns. After 150 paragon, the effect per paragon starts to diminish.

Having 300 paragon is worse than having 150 normal and 150 burnt, as with the combination of types, paragon has no diminished effect. 300 paragon would give ~187.5% bonus, while 150 of both gives 150% from paragon and 90% from burnt for a total of 240%.

2. Both have a cap. Paragon caps at 200% production bonus. By turning it into burnt paragon, you can effectively increase that cap, as burnt paragon has its own cap (100% before dark future, 400% after).

3. The effectiveness of burnt paragon increases once you reach dark future (year 40,000). It becomes stronger than regular paragon at this point.

4. Burnt paragon increases the effects of leader traits. E.g., 1,000 burnt paragon roughly increases the effect by 50%.

5. An achievement requires you to reach the Moon in iron will mode while having less than 10 regular paragon. Burning paragon allows you to complete this achievement.

You have a lot of reasons to burn your paragon. You just need to be careful, because at the moment you burn it, you don’t gain any benefit. You need normal paragon to complement it, so burn right before you reset (unless you go for the achievement).