The 999 part is my addition and is what Decrits attempts, if I understand it correctly...
Damn, I've been putting off reading his new proposal because the two of us always end up arguing!
But you need to be exceptionally careful who you give the new coins to...
I wrote about this in other placed, but I concluded that:
1. If you are creating new coins, because the coin price has gone above your stability target, then
2. The only
effect you are trying to achieve, is to IMMEDIATELY reduce the coin trading price.
3. The only stimulus that can
cause this effect, it to give the coin to some one who will IMMEDIATELY sell the new coin, FOR LESS than anyone else is currently offering.
4. Who are these people? The ones with coin addresses on the SELL side of current/recent transitions.
Giving them to hoarders will have zero immediate effect. Neither will giving them to current buyers. You can argue giving them out might have future effect. But that just makes over shooting the target (and oscillation) much more likely.
It's important for this stability thread to note that even 0% inflation (complete stability) is a counter productive goal. Sometimes a real 0% return is above what market has to offer, for example during a recession. If you try to guarantee a 0% risk free return, you kill trade because people prefer to hold money and wait for better times. Money are held, trade stops, better times never arrive and a 0% real return looks even better, reinforcing the crunch. So it's either inflationary and money, or it's Bitcoin - a speculative unstable commodity for the internet geek and closet anarchist.
Damn there are so many important topics being mentioned. Perhaps the optimal GrailCoin is one that targets X% inflation. Boy that thread is going to cause flame wars! Want to start it? Are you listening Freicoin folks?