their profits are divested in the form of valor, and they need to either trade or gamble to get silver to convert it to bits, to reinvest
So 1 silver combines with 1 valor to make 1 bit, causing the silver and valor to vanish?
From gamblers point of view, the new setup is pretty great. You effectively will get a ~50% off the house edge, selling your silver to investors
That 50% number would depend on the market price of silver wouldn't it? Since valor is earned at a 1% rate (by definition), and silver is earned at a 0.5% rate (assuming an average 0.5% house edge) there will be roughly twice as much valor as silver in the world. That would lead to a glut of valor in the world, driving its price ever downwards.
Maybe the average house edge is being increased to 1% so the supply or silver matches that of valor?
Anyway it's an interesting concept.