Hi Dan. Thanks for sharing your thoughts on the issue.

The biggest risk is unrealistic expectations of normal users who would be unjustifiably upset if SBD was suddenly pegged to STEEM.

For this part, are you referring to the scenario where the SBD debt exceeds the 10% threshold, and converting no longer returns approximately 1 USD worth of STEEM?

I think the fear is that if this were to happen, it would make using SBD as a marketplace currency (at least in today's conditions where a USD has a reliable value in the eyes of 'normal' users) very unappealing. It essentially takes away the main reason for users to even use SBD in the first place.

At that point, why wouldn't they just transact directly in STEEM?