Can you explain why you'd want to create this artificial price stability in the first place? Shouldn't you want free market as a libertarian? People already vote with their dollars now so if bitcoin fails, it fails. What makes you think people will put up the money necessary to implement your scheme? What assurance would they have that the money they put up would not be swallowed? What happens if someone wants a refund on their investment? What's in it for them in the first place, if they put money up towards this?

Also, couldn't someone easily create schemes to drain money from this system since they'd know how it works? And why would outsiders want to participate in such a system? Are you anti-speculation? Is that why you want to create fake price stability? To overcome the price swings that contribute to peoples' reticence to doing commerce in BTC?