I did mention a burn conversion in the whitepaper, but there has been a lot of advocacy in the team towards a DAC-style snapshot since I released the whitepaper. In the case of a snapshot, one would import his private keys from StealthCoin into a StealthSend wallet. The amount of StealthSend in the wallet would be the same as the amount of StealthCoin owned at the moment of the snapshot. In principle, that would make XST a DAC and StealthSend what I like to call an "asset dividend".
I have heard a lot of compelling arguments for snapshots. Namely they are simple and decentralized, which I greatly favor. So I'm leaning in that direction now.