I am wondering why not consider your scheme as one of the earliest candidates for the sidechains to be embedded with the bitcoin blockchain. Adam Back and Gregory Maxwell both have had a glance at your scheme and they are the very founders of the sidechain proposal. I say this because two of bitcoin foremost problematic issues are scalability and anonymity. Having the total supply of this coin less than the total supply bitcoin has and setting the 1:1 pegging proportion makes this coin economy more precious and dynamic and also guarantees that the bitcoins still in circulation never cut to zero, as they can not all become pegged in the new chain.