I largely agree with your analysis. What I don't agree with is your assertion that it is sufficient to only control the increase in supply. If the market values the coin less than $10, there is no mechanism to compensate and the price has the potential to crash to $0, or worse, to slowly bleed in value over years towards $0.

There must be some way to reward holders of the coin when the market price falls under $10, such that it becomes attractive to be a holder, therefore pushing the price back up.