No, not exactly.
Im saying open an account, call it sbd open window, and send steem to it for sbd in return.
The reason to use an account rather than a ui function is for ease of transparancy.
Anybody can look in the wallet, it takes a more advanced user to access the blockchain.
By opening this window sbd is capped at one dollar, mostly.
If somebody wanted to pay more on an exchange they could, but why would they?
I guess a premium could be charged for accepting btc, or other tokens, instead of steem, on the exchanges.
The steem sent to the account would be distributed just like normal inflation.
If the debt ratio is too high, it could be burned.
An average would be used to avoid manipulation of the market.
If demand for a pegged asset is more than 15m, then sbd rises in price breaking the peg.
15m sbd is not enough to run an economy.
Why bother adopting a pegged crypto if there is barely enough of it to go around?
We need billions of sbd to begin thinking about replacing even a tenth of the usd/euro market.
The current inflation rate doesnt meet the demand anytime soon.
By forcing demand for a pegged crypto through steem first demand for steem is up.
For merchants the price of steem is irrelevant, they will get 1usd for 1sbd whether that is one steem or ten.
Though i would think that once sbd held its peg for a while it would take on a life of its own as, other than author rewards, each one only came into existence by paying one usd of steem.
We could just bank the steem from sbd sales, but that wont keep the price from dropping.
Spreading it through normal inflation turbocharges adoption.
In the time it takes to go from 15m to 15b sbd the current users will be very excited.
What happens when the excitement falls back to the normal inflation rate remains to be seen, but while the spigot is open alot of people will get very wet.