Unfortunately, it doesn't. Yes you're not paying fees directly per transaction, instead of having to pay it through inflation, the witnesses receive payment which they sell to cover server costs, so it's not free, you're paying in a round about way, a way that charges you regardless of how much you're using the chain
Apart from EOS and TRON no dpos chain even holds over a billion in value, because people don't trust the model to secure any large amounts of money
RE: ETH Gas Fee Explosion