vjudeu is right.
You are trying to keep the average transaction fee at 1% of the average transacted amount. With this proposal, people will have to pay 1% of the transacted amount on average to be able to compete with other people and get confirmation.

Let's say you have succeeded to keep the transaction fee at 1% of the average transacted amount.
In the next block, there are 100 transactions. Each of them is 200 bytes and transacts 1 BTC. Note that it will be impossible to get confirmation if I pay less than 0.01 BTC as transaction fee.

And what if I have a UTXO of 1 BTC and I want to send 0.001 BTC to someone and the remainder to my change address?
I will have to pay 0.01 BTC for sending 0.001 BTC.