Ultimately the issue you will run into with free handouts or enforced penalties is that neither provides an incentive to do anything in particular, that is people will continue to do whatever it is they want. Its specious to say that because we have X system that this will produce Y behavior in its users.
Despite what it seems, I'm in complete agreement with you. However, I agree what I wrote was confusing.
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?
Miners. They are the speculators ready to sell. 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
the people buying coins 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.
If only you would read what I MEANT, instead of just reading what I WROTE. :-)
I can make the case for incentives and disincentives too. But that is really a separate discussion from mining.