This would probably be slightly better but not necessarily worth the added complexity given the current funding of SPS. At the moment, SPS only receives 10% of the roughly 8% inflation or about 0.8% of market cap per year. In other words, if the debt ratio is 10%, then after a full year of SPS printing (assuming no conversions, which is of course unrealistic), the debt ratio would then be 10.8%. Not really a serious concern.

In fact there are times, even under haircut conditions, when conversions reduce the SBD supply faster (sometimes much faster) than SPS creates it so even the 0.8% annual rate is an overestimate.

Eventually I agree there are are merits to the idea of the blockchain sometimes buying and selling on the internal market, but at the moment it seems like a very low priority given the above numbers.

One thing that change that would be an increase in the share of inflation going to SPS.