How will this proposal help stabilize the price of Kin?

[Freedom-kin]

How will this proposal help stabilize the price of Kin?

This proposal rewards SPENDS which will encourage developers to generate SPEND opportunities.

On the use of these real economic transactions, The Royal Bank of Canada says the following:

source
https://www.bankofcanada.ca/wp-content/uploads/2016/08/swp2016-42.pdf

The larger impact of speculators beliefs about the exchange rate in the early phase of a virtual currency can be intuitively explained as follows.

In the absence of real transactions, any adjustment in the exchange rate to the new expectations is completely in the price domain. In the presence of real transactions, however, the adjustment towards the new equilibrium will partly be in the quantity domain as well.

A more pessimistic view about the exchange rate by speculators will reduce the exchange rate. Given the value of real transactions, such a reduction in the exchange rate will simultaneously require an increase in the number of the units of virtual currency used to facilitate real transactions.

This implies a lower number of units of virtual currency in the hands of speculators in the new equilibrium. The larger the value of real transactions using virtual currency, the larger the quantity effect and, hence, the smaller the price change.

The economists of The Royal Bank of Canada conclude that the larger the value (not just the number) of real transactions, the smaller the price changes will be.

Lets reward real transactions (SPENDS).

Everything you reward gets bigger.