BobbySchmurda lol there of course is always downside and risk, but V1 had a runway burn mechanism to prevent the price from going to $1.
Again, if you cannot stabilize the asset value (which I don't think they have anyway of doing, nothing besides USDC is really "locked" in price), then all this does is appease those who were early into the project, have already grown their holdings by some massive amount, to help with the tax issue. If you're new to this, what is the benefit?
I ask again how this is now any different from a stable coin? Index of 10,000 means little if the price is $0