Ok so we need to implement a new stringency on coin.
Here is the plan, lets brainstorm this for Excl and Kingscrown.
Excl could implement special Exchange addresses for the coin. Maybe selling to BitCoin burns a portion of Excl back into PoS as it enters the exchange in a network Fee.
Inside each wallet we need a function, the Coin Age will not only be determined for PoS but also from an Exchange wallet. This will extrapolate more PoS for coin that stays away from Exchanges. Merchants will be burning coin yes, but they are the reason we use Excl to buy things with. We are safeguarding the money supply from a constant recycling of money at exchanges and simultaneously there will be less coin in circulation if people just keep selling for profit. Eventually making people who hold Excl more money in the long run and if Merchants decide to hold because of this then they complete the stability. These same people who hold now have the advantage in PoS. Freshly minted coin sent to an exchange will not burn Excl since selling needs to occur for people to buy in.
However this type of scenario works out best after we try to Game it and Test the theories then that is the direction needed.
Merchants holding a portion of their Excl make a better profit long run for themselves, it is like playing a stock while making their living. If you create worth by holding and not selling and you can trade for things you need then it may grow exponentially. At that point people will begin to value it more and hold even further.
Things to think about is a new way of dealing with PoS coin at this point. If that PoS coin can not be used until it is bought at the exchange then that is another base to build from. Maybe the buying of the Excl from BitCoin releases the Excl inside the PoS wallet into the exchange. So if no one is buying at a price the Merchants (or anyone for that matter) agree with, the PoS coin stays locked but synced in line of age. Since Excl will not be sold for less than a merchant needs to get out from in order to stay in business and be profitable! So you enable a line behind the merchants sort of. It would be like delineating freshly minted money so that it will not compete with Merchant liquidity. Something to that effect. The standards have to be setup since it is obvious Merchants need Liquidity, so allowing for that, also helps their stability and makes them not have to compete as much for that liquidity. People who buy in would be sold the new coin people who sell out burn a large portion coming into the exchange? This is drastic but it would show an equilibrium and boost the price of the coin close to BitCoin. People could then keep perpetual Excl in the exchange I think as long as it doesn't leave again it is not hit with a fee.
There needs to be a magic ratio here. So that merchants/profiteers/daytraders/whales sell Excl to BitCoin. As soon as the funds hit the exchange wallet they are marked for Burning and the new coin is what is sold to the buyers, there will be less new coin always.
I may have convoluted some of the aspects but again make the ideas work. Having that function in the wallet would be automatic, then any fees going into exchanges even if there is none coming out of exchanges, gets burned into new PoS. Every aspect has to compliment each other.
If we can make this theory work, suddenly you have just stabilized your economy and Merchants may be glad to hold and even buy Excl since they see the stability of it as an investment. The more people talk about it the more it would spread and the buys to get in would overwhelm the sells since most hold and only Liquidity or marginal profit takers leave.
Lets just keep brainstorming the hell out of this...
I love the fact you are thinking outside the box here. Going to need to find a bit of time to really read what you have written (needs some brain power to process). However I wanted to post a quick reply to thank you for this kind of forward thinking ...