OK put it this way. The feds said they have x amount of gold in the reserves. They print x amount of paper money for you guys to spend and burn. What actually affect the value of the paper money is how you spend it and how you guys burn it. What the feds care now, is how they control the flow of the printed money.

Gold = steem
USD = SBD

Now imagine this, if California decided they need to go economically independent and start to print their California dollar called CD. Base in what they print their dollars?

California = dApp
California dollar = SMT

Technically, SBD is already an SMT. They are here to regulate the usage of Steem.

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