Zano decided to set the block reward relatively low to avoid unnecessary selling price pressure while keeping the chain safe from flood attacks. We have an uncapped max supply because the assumption that only TX fees would be enough to cover miners’ appetite might not be accurate and Bitcoin might become a sad example of this. Having a fixed emission ensures both stakers and miners will always secure the network.
On Zano, all network fees are being burned. As network usage rises, the daily fee burning could surpass the emission from block rewards, resulting in supply becoming deflationary over time.