2) The way BASE maintains its price peg is through an elastic supply protocol which utilizes rebasing. This means the protocol will adjust total BASE supply, changing scarcity, to influence price to reach the target peg.
Consider this example, where total crypto market cap is $400B:
t1 : Starting Equilibrium (Pegged)
John has 1 BASE worth $0.40.
t2 : Price Increases (Peg Disruption)
John has 1 BASE worth $0.80.
t3 : Ending Equilibrium (Pegged)
John has 2 BASE each worth $0.40.
In this situation, the price of BASE doubled above the peg price. In response, the protocol doubled the total supply of BASE, which brings scarcity down, and influences price to return to its equilibrium. These supply adjustments are called rebases. There can be expansion rebases or contraction rebases.
This is how the peg is achieved.
I'll focus on this matter first before attending to other matters. Based on your example, you peg the price by doubling and reducing the amount your user hold? And how is this achievable? Doesn't it imply that you have control of every token circulating?