[jeromegv]

Sounds like a no true Scotsman fallacy. Even has Luna started losing peg, lots of people thought there was no way they would go entirely down because it was one of the biggest name in crypto and supported in the industry by so many. It was very mainstream solution and among the top 10 crypto in market cap.

The history of currency and pegs are well documented in the world of finance, for decades. If anything the demonstration that an algorithmic stablecoin is possible is something that must be proven, because every signs are pointing toward the fact that it's not.

[bhouston]

I guess it is a Scotsman like scenario. The issue is that algorithmic lending isn’t uniform nor fully explored yet so it is hard to say that it is proved that it can not work.

I would argue that it is akin to saying that because you found 5 Scotland and none of them is tall then it proves all Scotsman’s are short. It is not a true proof that all Scotland are short but rather an observation that all Scotland you’ve seen so far are short. These are different things. Maybe all Scotsman are short but it isn’t yet a hard proof just a conjecture. That is all.