I already consider NXT and Ether narrowly distributed. One indication is limited time of IPO distribution. Ether can still fix it because not all coins are distributed yet. NXT can fix it too if big holders make that choice.
I suggested to keep distributing at IPO price for long term, what is wrong with my suggestion ?
I did not suggest to give it to people for free.
Nothing is wrong with your suggestion. It has been done before. When the dollar was on the gold standard, then you could always get a dollar for a fixed amount of gold. China's currency (as well as those of a few other countries) can be bought for a fixed amount of dollars.
The term "pegged" is used to describe a currency whose value is fixed to the value of another asset, generally a currency or commodity. Typically, the peg is requires a person or organization to guarantee that the currency can always be exchanged for the underlying asset.
There are a few "pegged" cryptocurrencies, but they are generally very small because they rely on trusting the operator to maintain its pledge to exchange the currency for the underlying asset.
There are are a few ramifications:
1. The value of the currency is never more than the underlying asset because you can always get it at the pegged rate.
2. In order to maintain the value at the peg, the currency has to be at least as useful as the underlying asset, or the issuer must promise to also buy it at the peg, no matter what.
3. If the value of the underlying asset goes down, so does the value of the currency.
In effect, you are suggesting a currency that acts as a substitute for the underlying asset.