Well that's what this is really - you post content and you can pay to promote it. Those are ads. You're probably talking about Steemit Inc selling advertising directly on the site which I don't expect they will ever do nor do I think it makes sense for them to do that. Steem is a decentralized system and this is sort of a decentralized way of having advertising.
Also one thing I don't think enough people realize is that the advertising on Steem is practically free right now. You get most, if not all, of the money you spent back when your post pays out. Really every ICO or other crypto project that is trying to get users should be buying STEEM to advertise to this audience. It just shows how early and unknown Steem is that that isn't happening yet.
I understand your point, my only problem with the current system is its adding way more inflation.
Lets say we don't have bots, then only few posts will get upvoted, which in turn will mean lesser number of steem will be distributed hence lower inflation. Due to current system, lot more steem tokens are getting added into circulation which is hurting steem price. We need a way to burn steem token somehow.
Burning is accomplished by sending coins to @null.
That's not correct. The inflation rate of STEEM is on a fixed schedule and will continue on that schedule regardless of how many upvotes are cast.
Thats something i did not know. I will have to study more to understand economics of steem then. Thanks for your reply.