How is it working?
When you declare a function in some execution context, a binding is added to the variable environment of that context. When you reference an identifier, the current variable environment is checked to see if a binding exists for that identifier.
If no binding exists, the outer variable environment is checked, and so on, back up to the global scope.
So:
// OUTER SCOPE
// Binding exists for 'example'
function example() {
// INNER SCOPE
// No binding for 'example'
// References 'example' in outer scope
example.x = 1;
}
What is the problem hidden in this?
There are none (in general... although whether it's the right solution for you depends on what you're trying to do).
You are effectively creating a "static" property of the function. As JavaScript functions are first-class you can set properties on them as you would with any other object.
Note that the behaviour is different if you have a named function expression, rather than a function declaration:
var x = function example () {
// Identifier 'example' is only in scope in here
};