RE: How SBD peg actually works OR How the @sbdpotato conversions won't affect SBD price
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That is a good point.
I haven't considered the sps influence on this, and thinking about it, it's kind of worsening the debt ratio even more...
More circulating sbd = more debt.
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SBD created to fund the SPS (treasury) doesn't increase debt in any real sense (though it does increase the apparent debt ratio used by the blockchain to calculate the conversion haircut), until stakeholders vote to pay out those SBD in order to fund proposals, since it doesn't circulate, it just sits in the treasury.
If that happens (funding payouts), then one can conclude the stakeholders believe that such an increase is 'worth it'. Indeed funding something like @sbdpotato out of SPS is another way for stakeholders to place controls over the debt ratio (since @sbdpotato will destroy more SBD than the SBD put into circulation to fund it).
For this reason, as well as the funding rate being rather low (less than 1% of market cap per year), it was seen as fine to continue to fund SPS with SBD regardless of the debt ratio.
So the SBD locked is still counted as circulating SBD, it does affect the debt calculation.
And even though the SBD is locked, it makes sense that the debt-ratio increase, because the SBD is printed, and the debt already exists. It can't be claimed, but it exists.
Can't say more than first impressions and thoughts, because i haven't researched how the SPS work yet.
I don't know what 'it exists' means exactly, nor what it means to say it is 'printed'. It is a number in the blockchain code. It can't be spent, it can't be converted, it isn't part of any user's account balance, etc. In fact, regardless of votes, it can't even be paid out to SPS proposals at a rate of more than 1% per day.
IMO it shouldn't even be included in 'supply' until placed into circulation, at which point it can be spend, can be converted, etc. but this is of little practical significance right now since the amount is very low (200K out of 7M), as is the rate of increase.
If it's being accounted for by the blockchain as circulating supply, then it is "printed", and it is added as a debt to be paid.
It might be locked and not moving, but it is accounted for, and it does have an influence on the debt ratio value.
And as you said, it definetly shouldn't be included on the supply until it is unlocked.
And 200k/7M is 2.8%, wich isn't insignificant if you consider that the external market debt ratio is around 0.5%-2% over 10%.
So yeah, the way this is accounted for does have a significant impact on the debt ratio.
The 2% (over cap) is a percentage of the total Steem market cap not of the amount of SBD, so these are different numbers. In fact about 20% of SBD needs to go away to get back to the cap and SPS is only 2.8% of SBD.