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     6 years ago (edited)

    Once 10% debt ratio is reached, there will be no SBD production at all, and from the whitepaper (pages 10, 11 and 12):

    A rapid change in the value of STEEM can dramatically change the debt-to-ownership ratio. The
    blockchain prevents the debt-to-ownership ratio from getting too high, by reducing the amount of STEEM
    awarded through SBD conversions if the debt level were to exceed 10%. If the amount of SBD debt ever exceeds 10% of the total STEEM market cap, the blockchain will automatically reduce the amount of
    STEEM generated through conversions to a maximum of 10% of the market cap. This ensures that the
    blockchain will never have higher than a 10% debt-to-ownership ratio.

    and...

    If the debt-to-ownership ratio gets dangerously high and market participants choose to avoid conversion
    requests, then the feed should be adjusted to increase the rate at which STEEM paid for converting SBD

    I guess we'll see how this works out in reality...