Interesting. Probably the first utility-token protocol I’ve come across to incentive users to spend as well as hold. Australia’s Power Ledger (https://powerledger.io/) does something similar.
Also — you’d want to make sure the token is worth enough so that users would be obliged to convert back to fiat and exit the network if they wished to do so. Although if the token’s USD value goes high enough you’d have people simply speculating and then exiting. So, how would you balance the underlying value of the token so that it’s high enough to entice people into the network but not so high that they quickly convert back to fiat or BTC and leave?