Smith's first season was a redshirt year, as everyone clearly knows. What's lost in that fact is what it means based on the Collective Bargaining Agreement. Having spent the entirety of 2016 on the Non-Football Injury list, there were no games in which he was active and, as such, he didn't accrue a season towards his career. This means, contractually, Smith isn't actually entering the third year of his rookie deal.
He's only entering his second season, as dictated by the CBA. This means following his initial contract expiration following the 2019 season, he won't hit the unrestricted free market.