I have long thought about this exact thing. However regardless of how they are doing it, the technique proposed at BitBay was to do a soft peg, more of a democratic hedge. Although at first, we wanted to do a hard peg inspired off NuBits but when I proposed the rolling peg people preferred the idea in the hopes it would provoke volume and be more interesting for growth. There is no guarantee we will get any buy walls although I dont see why we shouldnt get a reasonable one. MY theory is that a buy wall isnt needed if you have control over deflation. So BitBays peg would be a pure control over deflation rates. Since we wouldnt be paying interest for parking (although its an interesting idea...) then there isnt the need for custodians. However, parking is always possible with locktimes.
The use of custodians goes against what I believe in which is trustless networks. Since our rates are controlled by a vote, its pretty close to trustless although i could see a person buying their preferred interest rate although it would be expensive to do.
In effect, pure control over deflation and inflation rates would not be like NuBits which does have some elements of a ponzi (although he is misusing the term).
Ponzi schemes are classically known as "Rob Peter to pay Paul" and thus, it means that someone would sell shares to a company at an inflated price to pay off old shareholders and if everyone was to call their shares forward they would be forced to shut down.
The term "Ponzi" is misused so much, it reflects on how loose people are with words these days.
So I think the author should be looking for another term. What he is saying is NuBits is not sustainable. Which may or may not be true. I dont like the centralized aspect which is why I'm not interested in a hard peg but a soft rolling hedge. This way, we try to promote growth in the coin by controlling supply to reflect demand.
And this is only the first evolution of a deflationary coin. There will be many ways to expand off of what we are trying to do here.
Perhaps NuBits can sustain itself since the walls always seem to be sufficient to hold the price. As long as the buy wall is good enough, i dont see how it can fail. Although the "custodians" arent obligated at all and thats why i dont want to use them.
On the other hand, there is a great arbitrage opportunity in NuBits and even now with Bitcoin being very bearish, NuBits held its price. I suppose the true test will be in a bull market.
