ok, so you mint coins proportional to increases in price in order to match your target price.. you distribute those coins equally among all coin holder proporti

ok, so you mint coins proportional to increases in price in order to match your target price.. you distribute those coins equally among all coin holder proportional to their holdings. assuming you can mint coins continuously, you are able to keep the price fixed... Until the elephants (biggest holders) realize that they can buy at $1.01 to ensure they keep getting minting payouts which eclipse the $0.01 premium they are paying to float the market. It's a runaway feedback loop for them until... the the price drops below $1.00. What is the mechanism to deflate the currency? a greek style haircut seizure? welcome to a flash crash as all rational parties move their value to other currencies... so to prevent the former feedback loop, you can impose a sufficient transaction fee. to prevent the latter feedback loop you can implement bank-style currency controls, a technical limit on withdrawal rates.. so you end up with a currency which is subject to the exact same (perpetual inflation) negative performance of its fiat counterpart, but with higher fees and stricter controls in place... So it's got the worst of both worlds