This whole concept look silly and it is something that he is creating value from thin air.
I can say this is somewhat of scam project or ponzi at the best and showing that project will be used to reward the merited user (with there free,worthless token.) ,just to get acceptance in the community.
What I dont understand is how can he guarantee or promise that the price of the token will be $1. It is not really that easy is it?
This is totally unrelated to this particular token, which I don't know anything about and only spent 30 seconds skimming, but you could do a stablecoin in a mostly-decentralized way like this:
- Call the stablecoin "SSCN". There's also another token which is part of the same system called "SBND".
- When the price is below $1, the system automatically creates
x SBND tokens and sells them for SSCN tokens in an automatic auction process. This destroys SSCN coins, reducing the supply and therefore increasing the price.
- When the price is above $1, the system automatically buys
y SBND tokens in return for SSCN tokens in an automatic auction process. This creates SSCN coins, increasing the supply and therefore reducing the price.
(Speculators would buy SBND tokens if they think that SSCN is going to become more popular, and sell them if they think that SSCN is going to become less popular.)
A decentralized system
cannot know anything about prices, so some centralized entity needs to provide SSCN's price to the system as an input. This is an unavoidable point of centralization. But everything else, such as determining
x and
y above and conducting the auctions, could be done automatically.