> And by using proof of burn on a 1 to 1 ratio you are hoping that 1 SwapBill BTC always equals 1 BTC? Or perhaps just stable enough to facilitate trades that might span 24 hours..

The proof of burn setup provides a hard *upper cap* on swapbill value, but the actual market value of one swapbill will then float freely somewhere between 0 and 1 based on supply and demand.

The intention is that a hard upper cap will help a lot with making the currency stable, by avoiding the whole 'to the moon' thing, in a first instance.

But there is then also a bunch of functionality included to make it very easy to sell your swapbill for host currency, which should also help with stability.

The idea is that it should be almost as easy to get your initial swapbill by *exchanging* host currency for swapbill as it is to get swapbill by proof of burn. And then, as long as you think that people will want swapbill in the future, there is an incentive to buy any swapbill being offered far below the burn ratio.

The 'backed' exchange mechanism between swapbill and host currency is then also quite interesting, since this works with just one single 'atomic' exchange transaction being required in each direction. When obtaining host currency from swapbill this is naturally straightforward, but when obtaining swapbill from host currency (with a 'backed' exchange) this is based on some swapbill already being committed by a backer, and with the idea that there is a practical limit on maximum transaction throughput..