We have discovered the alchemic secret of transmutation

[Splatpope]

normally I'd be a "omg irrealistic pls fix" kind of guy but this is pretty amazing

instead of completely removing it, let's fix the bug but integrate this transmuation mechanic in something else more sensible with drawbacks and all
(i'm completely aware the purpose of the smelter is to make alloys, but i'm talking about literal transmutation, not just mixing stuff)