everything looks correct, but i do not get the point how more steem is going to get generated since SBD is already pegged to $1 here on steemit and 50% of the reward will always be SP which will take SBD as $1.
talking about the outside conversions, they are only possible upto the extant of total STEEM generated already as rewards, nobody can buy more steem than the generated amount and the post payout will increase with rising value of STEEM not SBD.
so authors can earn extra by coverting to other coins but i do not agree that STEEM circulation is going to be affected by a higher valued SBD.
Correct me if i am wrong,
It has nothing to do with the fixed number. It's like stocks. Think shares. They divide in number as their value increases. They start out as an Initial Public Offering--people can purchase them for what they will.
When people from the outside have the opportunity to purchase steem tokens for their businesses, this will revolutionize the world's economy as larger corporations incorporate crypto currency into their model without even realizing it. They'll do Initial Coin Offerings, and bam. Steem value increases (as does the reward pool).
I posted an article on it awhile ago, that I think may answer some of the economical questions on how it impacts the growth here, if you'd like to read it: Smart Media Tokens Take Over the World
You'll have OUTSIDERS speculating on tokens that are steem tied. It's brilliant. I can't friggin wait.
Nowadays, when you convert SBD to STEEM or SP, blocktrades takes into account the value of SBD from exchanges. That is why people got pissed before, because when they sent their SBD to SP, the conversion was assuming that SBD is valued at $1 USD but on exchanges it was worth $5-$13 USD. So if they had $10 SBD, they were only getting $10 USD worth of SP, as opposed to getting $50-$130 worth of Steem/SP.