This plan wasn't very well thought out.

Short term reward manipulation aside this plan is actually going to increase the problem it is attempting to address even though that problem might not even exist to begin with.

For some reason the premise here is that rewards are too high in value and that this is incentivizing abuse. On face value that premise is absurd and no analysis supporting it has been shown but I will continue to use the premise to highlight how bad the plan is.

The solution to reduce the immediate payouts is to lower the current amount of funds going out and also burns them thereby taking them out of circulation and limiting the supply.

You are now burning supply which will increase prices as long as demand remains steady. If the prices go up then the value of rewards goes up and you've accomplished absolutely nothing. The incentive to abuse remains according to the premise.

You are in effect trying to hobble the market differentiating value proposition that you see as incentivizing abuse but is also the biggest reason for success, new user signups, user engagement and market demand. It is what incentivizes the whole platform.

This is a perfect example of throwing the baby out with the bath water.