I don't see how this system is anti-inflationary. As the number of LVL2 coins in the system increases, so the rate of LVL1 coin production increases. As LVL1 coins are now being produced faster, their value decreases. People then burn LVL1 coins at an ever increasing rate, thus producing more LVL2 coins, which in turn increases the rate of LVL1 coin production. How is that not inflationary?