This of course raises the possibility of the USD value of the reserve falling below the # of issued Unum. In that case, a sale penalty goes into affect, to discourage selling and increasing the deficit. It's explained more here on the website:
- Buying Unum is a lose-lose situation. If the USD price of Ether goes down you redeem your Unum for less than you paid for it. If the price of Ether goes up, you redeem your Unum for less than if you just had bought Ether instead.
- Why bother tethering a cryptocurrenvy to Ether instead of just using Ether directly?
- Who determines what is the spot price of Ether at any given moment?
- Unum can be bought for 0.99 USD during "Bonus Sales", which goes against the whole point of it.
tl;dr: this is a terrible idea at best, and a total scam at worst.
But some of the other questions are good ones, can @jatsign address them?
- The spot price of Ether is found via Oracalize query to cryptocompare's api.
- I'm getting rid of the bonus sale idea, as many people had that concern. The original intent was to use it as a way to build up the reserve.
Sorry, the docs on the site is a bit old. As I said, it's a side project, and I'm incorporating ideas as people give me feedback.