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RE: Law of Supply and Demand Definition and Explanation OR Why the @sbdpotato experiment just won't work
The peg breaks when the market cap of SBD exceeds 10% of the total market cap of STEEM. It's the fault of the low price of STEEM.
Yes, it's kind of like this.
The basic concept here is that the amount of SBD in circulation must be able to pay 10% of the value of circulating STEEM. If the system detects that this is not possible, the system stops printing sbd until the market self-correct due to changes in supply/demand ratio.