Hello!
The proposal Dynamic inflation implies always burning 25% of all transaction fees. What changes with TPS in Dynamic inflation is emission rate of new tokens.
But since both in your proposal and in Dynamic inflation the idea is to burn transaction fees, the issue remains: if TPS is low, burns will be low in your approach as well.
To give you as sense of scale, the average TPS is currently 0.02 and each transaction pays 0.01 MAS of fees. With your solution (burning 1% of fees) would burn 0.1728 MAS per day. At the same time, because in your proposal MAS emission is not adjusted, 69120 new MAS are produced in the same timespan of 1 day.