I think this may be something where the idea of a piston was adapted to make some sort of tamp for something.
It may have been mounted to some reciprocating arm to compress something or to move a hot air mass, or some novel application where someone applied the concept of a ICE piston to do the work. Maybe in some small home forge or something like that.
The amount of fuel that would soak into the heavy carbon cap would probably fall well out of the range of how rich you can run it unless the carb was modified heavily as well but the amount of time needed to deliver that fuel in the compression cycle would be questionable.
https://en.wikipedia.org/wiki/Air%E2%80%93fuel_ratio
Also, once a hot ember forms on the top of the piston, it would just pre-detonate and turn into a flaming torch, where a ton of fuel would be needed to quench it enough to keep that in check.
Also, one rough ring that thick would have very little "flex" to conform to the cylinder wall, and how well the finish on the wall and the ring I doubt would create an adequate seal. The hot gas would get behind the ring and the carbon would be present in that area heavily as it's not in the photo.
This is just an adaptation IMO, not used to power an engine.
Or, someone that was desperate and had some knowledge tried it and it didn't work and had an "oh well I tried moment".
Or, heck, maybe it worked for an afternoon to drive someone somewhere, he got paid well, and makes another piston for each trip someone pays him to do. For all the work in a poor area, it may still have been lucrative until he could afford a new motorbike.