It would be pegged to a range of 95 to 1.05, which is not meaningfully worse than being pegged to a range of $1-$1.05 which is the current situation. There are other mechanisms that tend to push it toward $1 such as people choosing 50/50 HBD/HP or 100% HP for rewards, and speculation pushing it away from the bounds (makes more sense to sell HBD at 1.05 than to buy it, and likewise buy at 0.95 than sell).