First I like to assertion if this is what you mean:
Currently the debt ratio is as follows.
12.5 million SBD / 319 million (virtual amount of STEEM) * $0,21 = 18%
The haircut is in effect and therefor ~$0.40 cents is used.
But if SBD is converted to STEEM this debt ratio can change.
Is that what you mean?
@timcliff replied on my other post. I asked him something similar.
The debt ratio gets fixed at 10% but the effective price at which the chain issues Steem per SBD goes lower as more Steem is created. We have seen it go from $0.42 to $0.41 to $0.40, and if conversions happen in large enough amounts we will see that effective price go lower.
Yes, but that makes sense because the debt ratio should come down with more conversions reducing the haircut a little.
@timcliff replied.
Agreed, it does make sense, but it creates the avenue for inflation that is much higher than the community expects.