From the code I understand that new steem is created to pay the user for the SBD ?
Yes. New steem is created, but the virtual supply remains the same.
Think that the virtual supply is the total steem + the total "sbd converted to steem" (this second part is an amount of steem that varies constantly depending on the price and it is not part of the steem supply, the reason it is called virtual). When the conversion is done, we move part of these "sbd converted to steem" into real steem, new steem is created.
Something else i have been wondering is the purpose of the Fund ?
This fund is the total steem power.
Well nothing is powered up in the DREAM blockchain yet it shows a few millions there
Kinda misleading term, it is actually future supply or something in the likes because DEBT would be: (virtual - current) if we take the SBD as what it is... an IOU
Meaning that initdreamer is receiving 25% of the inflation in form of steem power.
Well it is now...
Yesterday it only had the Init Mint it was not getting any rewards...
Gotta check when i reinitialize the B/C