I found it hard to understand initially but it’s sort of like this..

Imagine its 1000 sats\byte.. then at 1M sats the fees will be about 250k sats or 25%

So if in the future (10 years) we have a fee environment where the ordinal fee hype is a normality.. let’s say 500sats/vbyte… Bitcoin would be looking as just a settlement layer..

If you want the fees to be only 1% then your utxo should be around 12.5m sats