RE: How SBD peg actually works OR How the @sbdpotato conversions won't affect SBD price
It must have taken a long time to write this, give you an A for effort but @smooth already answered that most of it doesn't make sense. Firstly you state the debt ratio is 10.x percent, it actually is more like 14.x percent if you look at this api by witness cervantes http://cervantes.one:8081/api/get_debt_ratio
Secondly burnpost and sbdpotato are complimentary, while the blockchain is printing STEEM, @burnpost burns the STEEM while @sbdpotato converts the SBD wrapper back into STEEM, so while one is reducing SBD supply and increasing STEEM supply, the other is mopping up the extra STEEM supply created so they work nicely hand-in-hand.
WHen the blockchain starts printing SBD again @burnpost will burn 50% SP and 50% SBD so will still burn a bit of both and compliment @sbdpotato in any event.
Yes indeed, I realized that I understood the debt ratio calculation wrong, but @timcliff helped me with that.
But this still doesn't change my conclusions so far.
The sbdpotato and burnpost interaction is only complementary when burnpost is burning SBD.
Since there is only STEEM to be burned by them (debt above 10%), they are slowing down the STEEM supply increase, Wich make the debt ratio recover at a lower pace. So it slow down the sbdpotato effect on the debt.
Still, reducing supply won't affect the price up. It might help to avoid it to go lower, but don't push it up.