The system of elasticity does NOT affect the block reward (ie. the subsidy). Nor does it directly impact anyone's wallet balance, as in, without their interaction. Sorry all, but the details are under wraps until we get closer to releasing. Trust me, I wish we could say more as it is very exciting, however, it is in our best interest to keep it on the DL.
Cheers,
Adam
As far as I understand; no demand and low price results in small blocks and vice versa. So, first I set my miners on VTC, then immediately buy the coins on exchanges, then block reward goes skyhigh, then I mine even more coins. Everyone wakes up and starts buying VTC, then I mine even more and then I sell all VTC for nice price.