Your reasoning is sound, but I haven't inspected the code yet to say exactly how it behaves. The 2000 day period and 0.05% is what he relayed to me. Maybe it is a fixed amount of the current balance, as you suggest, and I described it wrong. I or someone else will review it in the next few days to find out for sure, if @howo doesn't comment here in the meantime.
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Sounds good, thanks for keeping us updated.