Hello Digiconomist，I believe that the ultimate solution has already been there, from Hayek’s “Denationlized of Money”, in 1976.
Hayek said the private companies should issue money and compete each other in free market. While the governments allover the world have stopped private companies for dozens of years, the DAC will break the barrier！
In charter XI, Hayek told us how to control the value of competitive currency by two methods:
Short term lending
The Short-term lending is actually the answer we need, IMHO.
Nu system can lend NBT to nushare holders(as custodians)by keeping their nushares which has a bigger market capitalization than Nubits. For example, NSR has a 20million market capitalization, and
Nu system issue 10million NBT. NSR holders have to return the borrowed NBT within one week, otherwise the pledged NSR will be confiscated by Nu system. They can automatically renew the lending contract if Nu system agrees.
If Nu system stops short-term lending business, the NBT supply will drop to zero WITHIN one week, without paying extra interest to anyone if all NBT holders agree to sell one NBT at 1$. And if some NBT holders don’t wanna sell, the price of NBT can be raised to 2$ because those desperate NSR holders(custodians) wanna redeem their NSR which is twice value of their borrowed NBT. Of course Nu system wouldn’t let NBT become 2$, so before that happens, Nu system will start new short-term lending.
NSR holders vote for a ratio of NSR/NBT market capitalization, for instance, 2. That means if I have 1000$ value NSR I can borrow 500NBT from system automatically. The NBTs are already issued by voting and stored in a/some address which can only be moved by voting.
If NBT demand decreases a lot even becomes zero, the short-term lending mechanism could handle it without issuing extra NBT.
If NBT demand increases to a very high level that NBT market capitalization exceeds NSR, the risk is on free market’s side, not our Nu system’s fault. Of course free market will know this and this will natually suppress NBT demands and provide chances to Nu’s competitors. This is called free market mechanism, self adjustment.