Our solution to inflation is to reduce the money supply and release it when demand is high. Like a central bank does. Sounds like a proven methodology, doesn't it?
BTW I'm Cybnate, from the peercointalk forums and discuss.nubits.com forum. Nice to meet you.
How will the money supply be reduced and released ?
We are reducing the money supply by having people to park the Nubits at an attractive interest rate. The interest rate will depend on the shareholders voting for it. When there is lots of selling pressure the shareholders will increase the interest rates. When there is no selling pressure they will be zero. The shareholders can set interest rates independantly for short the term (days), months, years or basically infinite practically burning it.
Increasing the money supply is done by voting on proposals raised by Custodian's who are trusted to provide the requested newly created supply by the network to the exchanges (using the bots) and offering the Shareholders attractive dividends at an acceptable fee.
So the principle is like a central bank, but the voting is done by many shareholders all over the world. Given the amount of shareholders at this stage it is not perfectly decentralised yet, but I think we are on the way to it.