One of the easiest way to hard peg SBD to 1 USD is to reverse convert to STEEM. Reverse convert is explained in the second comment in the post https://steemit.com/steem/@buggedout/the-coming-steem-dollar-purge-why-it-needs-to-happen-and-how#@crypto-futurist/re-buggedout-the-coming-steem-dollar-purge-why-it-needs-to-happen-and-how-20180408t082633928z

Will there be a problem to keep SBD as 1 USD, since it forced to create more STEEM. I wonder how these STEEM and SBD are created to keep SBD pegged by keeping yearly inflation rate fixed.

However, STEEM supply is kept to a fixed rate (i.e. with 0.5% decreasing rate per year, currently at 9%). Is that emission/creation or burn/destruction of both STEEM and SBD due to conversion will be on per with inflation rate.

What happens to fixed inflation process if more STEEM/SBD are created on conversion process? Or, effects (e.g. slight increase or decrease) are negligible to fixed rate of inflation.

Currently, more liquid STEEM are created since SBD (i.e. 1USD pegged SBD) ratio of STEEM market supply crossed 2.5%, at 5% SBD production will be stopped.

What understand total reward pool (both SBD and STEEM) is generated on the base of inflation rate.