However, moderate inflation is actually a neutral effect in proof of stake systems, since all stakers/investors get the coins and nobody is diluted. Even more, if staking reward is significant enough, it actively encourages holding and the best holders's stakes are increasing, so people who don't dump become more and more prevalent. With 1% annualy, the holding reward is way too insignificant for most to seriously consider. I think the sweet spot is around 4-10% as is shown by the most successful POS coins.
I think the Masternodes (big and small) will bring some meat on the table with regard to that.