Basically a crypto savings account of sorts. Just like tether or circle but instead of staying at the same price forever, it will be just getting a sort of "interest rate" that keeps it going higher and higher in value. However there are couple of stuff that would prevent such a thing, who would be backing this increase in price, if there is something that is making money forever and with a guarantee people will buy it right away and that might create an off balance budget for the token that would make it worth more than what it suppose to, there were times when USDT was less than 1 dollar each and more than 1 dollar each as well. Someone needs to pay the increase for it and that won't be the users for sure. Hence it would be really difficult for anyone to guarantee such a project and back it with their own money for it.
That's not it. Suppose we had a central authority that regulates the coin supply and wants to keep it, say 1:1 with USD. If the coin gets too expensive the authority prints more coins, increasing the supply and making the price drop. If it gets too cheap, it destroys coins, decreasing the supply and raising the price. Up to now, attempts of this kind have either involved an actual central authority buying and selling coins(dumb) or an oracle that feeds price data to the network(not dumb but not great).
Ideally we would like the network to magically guess, only from that within the block-chain, the price on the exchange. This is not possible.
BUT you can use the hash-rate to estimate price changes. If the coin gets more expensive, more people want to mine, the hash-rate goes up. If the coin gets cheap, less people want to mine or they have to turn less efficient machines off, the hash-rate goes down.
You can then use this variations to change coin supply without a central authority. How so? By variating the coin reward per block(which lasts forever) and the transaction fee(which is destroyed). Since block reward lasts forever there will never be a time when transaction fee is miners only reward, so destroying it is not a problem.
