I have just reviewed the steem whitepaper and the blue-paper in search of a technical definition of how SBD work.
Unfortunately from reading these the defintion is not clear:
From memory I understand that rewards are issued in SBD until we have about 5% of debt to market cap ratio.
When the debt is more than 10% the conversion rate is reduced, to avoid the blockchain to go broke over its debt.
I think it is important that there is an official description in some of the technical papers we have.
Did I just overlook where this is specified or does this truly not exist?