Okay but what about the token supply? They have said that there will not be any hard cap that means no max supply of their token. It will be elastic and will increase or decrease with demand. So my question is how they are going to measure their token demand? If it will peg with their marketcap then what will be it's target price?
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A great question that can not be answered in a few sentences. So we wrote some more

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We have had some questions regarding the token supply, pre-minted tokens, elastic money supply and external relations/pegging, which we can discuss in this thread.
Pre-Minted tokensThere are no pre-minted tokens when the network goes live.
Fixed supply, 2-4 yearsThe supply has a cap of 100.000.000.000 tokens (100bn tokens), for the period.
Elastic money supplyThe supply algorithm can issue or burn tokens to regulate the supply. I.e. for ...
See the full answer in the tagion forum:
https://forum.tagion.org/t/token-supply-elastic-money-supply-etc/260