If 1/10 of the supply is being wiped every 3 years then we have a problem cuz SP tokens will only be backed by 0.1 steem.
This seems like a misreading of some aspect of the economics involved. What are you basing this off of?
Whitepaper says : In order to compensate for the ever increasing precision, the STEEM network performs a 10:1 reverse split every 32,000,000 blocks (about 3 years).
When they reached about 5b coins which is about 32 000 000 blocks the split will occur. After that SP tokens will be backed by 0.1 steem since 1/10 have been wiped.
But that is irrelevant. Reverse stock splits don't change the value of your holdings.
As I explained upthread, that is done only because Dan didn't reserve enough bytes of precision for token balances. He was "optimizing".
