Dilution would only come from forced settlements.
they will force settle for sure because they need to eat and pay rent .
They said it out right : They didn't sell BTS because of they think it would drop . They need to sell because they need to pay rent and eat .
So it doesn't matter if you give them BTS or BitUSD , they will need to sell it to FIAT and cause actual dilution every month .
It's still the same thing . And it will cause the false sense of "less dilution" and led to more dilution .
Strongly AGAINST this .
Unless there is a vest in period , dilution is still dilution no matter it's in BitUSD or BTS.
Besides , the whole peg scheme is regulated by one's own risk assessments about how BTS price will go in the future , but using "dilution" to generate BitUSD , you removed the "risk assessment" part from the equation , and you'll add extra unstable supply of BitUSD out of thin air and make the whole thing break apart .