Yes! This is how Bancor works :) Smart tokens mint themeselves as they are purchased and destroy themselves as they are sold. In our case, the price algorithm is set by the reserve balance and user-configured Constant Reserve Ratio.
We have always said that Internet 1.0 digitized the offline world, while 2.0 created new models. In blockchain, 1.0 digitized decentralized money, and 2.0 brings us new models that weren’t possible before, such as Smart Tokens. Very exciting!