The problem is not the reward-curve but the lack of any feedback mechanisms in the code so that the ecosystem equilibrium is commensurate with the stated aims.

The Vitalik quote is correct - it's all game theory. Having said that, I don't yet see a blockchain ecosystem that has got their algorithms right yet; ETH's gas fees are prohibitively high for small "social" transactions.

I am looking to see how flexible SMTs can truly be so that experiments can be conducted on different algorithms. We shall see...