Hey @toni2oni that's great, make sure to follow me then! I'll be putting out an article diving into SMTs, hopefully next week. The SMT token are created just like ERC20 tokens are, although SMT creation will be streamlined. It feels like they're pulled out of thin air, because we can't actually see them being created. Paper dollars are easier to understand because we can go to the mint and see them being created, so it's easier to understand how it happens.
When an SMT is being created, it's an algorithm being created on the Steem blockchain. It's just a more techy version of the mint :)
RE: Understanding the Steem Protocol (Massively Simpified)