@AverageJoe26 - Regardless of what your "true" pick is next season, if you successfully punt the #1 this season (offer the player's full demand, have it outright rejected, and do not offer again), you will then have the #2 pick as Type D compensation next season.
I've never done it - I've punted on lower picks in my drafts - but many owners have thought about punting on #1. Maybe ask someone who's done so successfully.