What is the compound effect of using a negative interest currency?

I’m new to economics and stumbled across Demurrage, a concept coined by economist gesell and used for 13 months in Austria before being shut down in the 1930’s by the central bank, during its 13 months use the town of worgl unemployment dropped to near zero and the local economy for this town was doing great, the question I have is related to depreciation of currency as a concept and its consequences for why we don’t use this, So I understand the concept of demurrage, which honestly means I feel you could just put a depreciation apr on all currency and depreciate it by length of time from distribution, meaning for every year the currency exists its value would automatically drop by for ease of use the fed uses 2% as their target rate for inflation if we applied a 2% demurrage depreciation rate to currency its value drops as the year goes by from its peak production, but here is where I’m confused I understand that when using demurrage you look at the velocity of the economy over store of value but as the demurrage depreciation happens wouldn’t those bills be subject to the laws of supply and demand and if so what would happen?