RE: How SBD peg actually works OR How the @sbdpotato conversions won't affect SBD price
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This would probably be slightly better but not necessarily worth the added complexity given the current funding of SPS. At the moment, SPS only receives 10% of the roughly 8% inflation or about 0.8% of market cap per year. In other words, if the debt ratio is 10%, then after a full year of SPS printing (assuming no conversions, which is of course unrealistic), the debt ratio would then be 10.8%. Not really a serious concern.
In fact there are times, even under haircut conditions, when conversions reduce the SBD supply faster (sometimes much faster) than SPS creates it so even the 0.8% annual rate is an overestimate.
Eventually I agree there are are merits to the idea of the blockchain sometimes buying and selling on the internal market, but at the moment it seems like a very low priority given the above numbers.
One thing that change that would be an increase in the share of inflation going to SPS.
Ultimately the deciding factor is the price of steem however it still bugs me that we are still printing SBD under the current market conditions. The updside to printing sbd instead of steem is that we have less liquid steem putting pressure on the price. If we could find a way of getting rid of the excess sbd by burning it instead of converting it everything would align.
We do have the promotion page which burns SBD, though the quantity is very limited, probably only a few dollars per day. When SMTs launch it will be possible to pay/burn SBD (amount to be determined) in order to create a new SMT.
Still probably won't add up to much but better than nothing.