Been getting liquid STEEM myself. I’m still confused at how this all works, but I guess this is what’s supposed to happen if the SBD get about 2% of the STEEM market cap. Didn’t remember reading about this in the whitepaper, but I may remember less than 2% of the whole thing. Thanks for the post! :-)
The white paper makes a passing reference to a mechanism that shuts off SBD when debt ratios are too high, but it doesn't mention specifics. The referenced post was me digging at the details after I read that section hehe.