Price drops that result from high interest rates don't matter if you are staking. Your holdings go up with the money supply so it's all good. It's all about market cap. With pos coins, you just need to stake to keep up with inflation. The incentive is to hold. While you hold the market cap goes up. The dev knows what he is doing. A higher market cap is good for the coin. High cap coins go higher. It's a marketing ploy and it's worked well for many coins. It also encourages early adopters who want to get rewarded by the high staking rates.