This explanation is fine, but only works if you give more weight to newer steem people invested.

Someone buying 1000 steem at the start, getting paid out the whole time and then getting an equal share to someone who just put in 1000 steem today is not remotely equal 1 to 1.

If the person putting in 1000 steem today or even a few weeks ago was aware a change was coming it would be different, however, they were not.

Again, if you prorate how much steem people can request based on how recent they put money in then the explanation given and process to cash out is the most fair solution.

If it is not prorated, then taking someone's 1000 steem just put in before the announcement and paying them based on a diminished pot they never had a chance to participate in is plain wrong.