Has anyone proposed a coin that adjusts its supply to stabilize prices?

[timhuge]

I would suggest checking out Decrits before potentially reinventing the wheel. Although I mention several times in that thread that many ideas are tentative, they are not so tentative in the 6+ months of delving down and refining since.

It would be helpful for me if you could write an updated post on Decrits that no longer describes the things as tentative that are not tentative and that includes the refinements you've made. But I understand if you are not interested in doing that.

[nortega]

Some of these are actually interesting ideas, but unnecessary in the long run. The stability that we are seeing in price now is the result of more day trading across (the remaining) exchanges. The more traders attempting to run waves, the smaller those price fluctuations will become. However because we are dealing with a relatively small marketplace atm, there are and will be some attractive fluctuations and instability for months to come to bring in more daytraders.

[Etlase2]

It would be helpful for me if you could write an updated post on Decrits that no longer describes the things as tentative that are not tentative and that includes the refinements you've made. But I understand if you are not interested in doing that.

It is getting to the point where my time would be a lot more productive just writing the code instead. But I will probably make one more proposal before that point.

[Red]

I would suggest checking out Decrits before potentially reinventing the wheel...

From my initial work, I see the difficulty that you are addressing in Steps 1-3. Step 4, however, and maybe the "billion other things" seem like improvements on Bitcoin that are relatively unrelated to issue of stabilizing the value. Do you think they might be an obstacle to increasing understanding of the StableCoin idea?

Tee Hee Hee!

My thought was to keep my proposal as close to Bitcoin as possible, making only the changes necessary to stabilize the value, as a kind of proof of concept. Then other improvements to Bitcoin could be debated separately.

Etlase2, where have you heard comments like that before! 

timhuge, that was exactly why I wrote the GEM proposal. It was just a thought experiment to concentrate on stabilization while changing BitCoin as little as possible (mostly to avoid tangential arguments).

In the spirit of changing as little as possible. Here's how my conclusions in GEM differ slightly from Etlase2.

Step 1: separate currency creation from securing the network...
Step 2: find a way to force miners self-interested speculators to compete against each other to more quickly stabilize the price...
Step 3: while the technical supply of coins must be unlimited, the realistic appropriate amount of coins that can be created in a certain time frame needs to be tied to network activity dynamically controlled. To make network activity "honest" rectify an over-availability of coins, a percentage of each transaction must may be taken as a fee ...

[Come-from-Beyond]

I expected to find that some of the alternative crypto-currencies would address the issues with price volatility that come from a fixed supply, but I haven't found any.

Take a look at http://qubic.boards.net/index.cgi?board=theconcept&action=display&thread=1. In Qubic the supply is controlled by participants.

[NickCoin]

this one is based on supply and demand through integrated decentralized exchange system:
https://bitcointalk.org/index.php?topic=246463.0

[lxdr1f7]

Assuming you want to target parity with the USD cant an exchange rate be observed from an exchange like gox and used to formulate coin creation policy in a decentralised manner?