Yes. There is a lot of stuff I don't understand even though I have spent plenty of time reading whitepaper and stuff trying to make sense of this.

This might have something to do with big payout trending posts. If the pool is 10k, and 9k goes to big payout posts, there won't be much left for others right?

Square of 500 is 100 times less than square 5000. I am suggesting to change that here.