In a sense, SBD is a smart contract but it is hard coded (I guess in Bitshares that is the case as well). The STEEM that backs outstanding SBD is accounted for in the blockchain virtual_supply counter. When SBD is created (currently when posts are paid out, but if conversions could do so then via those as well), the STEEM is moved to virtual supply and when SBD is converted back to STEEM it moves back out of virtual supply and into total supply.
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