SBD is not why the price is declining. SBD is crucial for the platform to work. There are true economic design flaws in steem. I have outlined them several times. You are blaming something that is completely irrelevant for the decline of value in steem. In fact SBD creates and does not destroy value.
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SBD has to sell off steem to raise its value. When steem's value goes up, the rate of selling off steem has to rise to hold the peg. What part of this is adding value to Steem? Not only this but apart from the stuff that goes into @null, the total amount of it is being added to at a percentage rate with the rewards payouts, and that which is not burning is slowly increasing in value, which will again increase in value, and continue to demand more steem to sell to hold the peg.
It's a debt instrument. Read the Whitepaper again. It is not a token like Steem (similar to a weight of silver or gold in terms of economics) or an asset like Steem power (which is like a corporate stock). Debt. It has to be kept in a balance with Steem Power because it has the effect of devaluing Steem Power, which should not devalue because it is Steem-Off-The-Market, decreasing Steem supply and thus raising price.
@dantheman even warned quite a ways back that hyperinflation of either dollar or Steem could cause a huge amount of damage to the Steem economy, even destroying it (by being worth less than is required to fund the infrastructure).
Right so they need to stop hyperinflating steem. If anything they should temporarily stop production of new steem.
The production rate of steem is probably about right now, but SBD compounds upon itself and SBD increases steem supply when Steem price goes up. Too much SBD and it pushes Steem prices down always and forever. I think that it has been too high a proportion from a very early stage. I don't think the supply of SBD should be allowed to get much over 2% of total supply or Steem cannot grow.