A funding mechanism would add incredible value to the steem blockchain.

This already exists. Anyone can propose any project and receive funding from the voting consensus of every other invested user. This has been done since the blockchain began. Why do we need to create it again?

If we don’t like the inflation for holding SP or its results, then get rid of it. There’s no need to add more complexity to the system by creating another separate allocation/consensus mechanism. Steem is already complex and complicated enough as it is.