Proof of stake minting works on how many coins you hold as opposed to your processing power and is therefore a lot more energy efficient.
I would say that the 0.01 works as a fee coming out of the coin supply.
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Ahh, so there is minting and transaction voiding. So more transactions means less coins.
That's right. When people move Peercoin around, 0.01 gets burned and taken out of circulation. So yes, less coins the more you use it. Which brings the value of Peercoin up a little more as time goes on.. since the coins get more scarce. :)