Think in practical terms.

How does this work in the real world?

Consumer side inflation is a function of LIQUIDITY and DEMAND not "total dollars in existence".

Have you ever heard a government or central bank advocate BURNING MONEY?

No.

When QE1 and QE2 and QE3 were executed, trillions of new bills were printed, but inflation barely rippled, WHY IS THAT? LINK

Spoiler Alert! - Because the new bills were SEQUESTERED in VAULTS.

Powering-up your STEEM has almost the same effect as BURNING IT.
Powering-up your STEEM is like putting it in a VAULT.