The reduction is capped at 33%. It doesn't redeem any amount past 3 mistakes. The reason being is that I didn't feel comfortable reducing the keyspace by more t

The reduction is capped at 33%. It doesn't redeem any amount past 3 mistakes. The reason being is that I didn't feel comfortable reducing the keyspace by more than that, although given the size of the keyspace I could have probably made it more lenient. Most of the errors people make I think are up to about 3 characters, based on a completely casual and informal survey. It's inflationary in the sense that the total LOST tokens is the total amount of Ether + 1%.