The above explanation is very interesting. It is obviously an ingenious design.
It removes reliance upon a centralized party to hold collateral that provides the guarantee of assured value.
Is the reduction of liquid supply rapid or aggressive enough in your opinion?
As the recent bitbay twitter tweet would explain that the last bitcoin dump could have mitigated its losses. Bitcoin dumped around 16% in just 28 hours.
The dynamic peg would have allowed bitcoin holders the ability to freeze 24% of supply if it had the dynamic peg integrated into it.
There is no telling how this could affect the price of bitcoin. It's never been tested on a high volume scale. But it will once it is discovered.
Just imagine how much support could be found by people waiting on the dips when you have a protocol that can enforce protecting a store of value that suites the majority consensus needs.
https://twitter.com/BitBayofficial/status/1332063147012853763