TSD is designed to be fully a decentralized self-stabilizing dollar.

TSD uses a seigniorage model to grow the money supply. This means, if the market demands more TSD (more buyers than sellers of TSD), more of the coin (TSD) will be minted to meet that demand and bring the price back down to $1. That extra minted money supply is distributed to the current holders of TSD (who have taken steps to lock their holdings to the protocol, as detailed below.). Keep in mind, if the reverse happens – demand goes down – the protocol has to reduce the supply of TSD, having an opposite effect.