We've already discussed a few different ways to circumvent this "fear" in MatterMost.
There's the burn idea. Then, there's the decline voting rights in exchange for higher staking %.
You want to give people incentives to hold HP in their own accounts. This can be better staking ROI/interest rates (no, not this voting/curating garbage which always lead to abuse and disagreements on L1). If not, more and more will end up on exchanges.
What went wrong? EOS is miles ahead of Hive in terms of market cap and price with everything you fear the most. And people seem to love BSC.
At the end of the day, what matters is profitbility without interpersonal conflict, not your anarchist/idealist dream.