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But we already have a speculative asset and SBD is already not a free asset. Over time, it's value will go down to $1 as more SBD notes are produced. To treat it as an actually speculative asset when it is not is wrong. In fact, the current holders of SBD could experience a 6-7x drop in value in their asset as time goes on. You can't HODL it.

Here's why:
Steem is $10 -> 10 SBD produced per Steem
Steem is $25 -> 25 SBD produced per Steem
Steem is $50 -> 50 SBD produced per Steem
Steem is $100 -> 100 SBD produced per Steem

The SBD supply will explode if they are not cashed in and cashing them in at this point would be stupid. Whether or not we should implement the reverse peg on the asset is a good debate and I respect those that disagree. But those people holding an asset that is fundamentally not worth more than a dollar clearly would prefer to gamble and that has the potential to hurt many users down the road when the mechanism above punishes them.