1. Bid 20% of the value for your account, pretending that you lost the key.
2. HFT-style actor bids 21% (or 99%, or whatever).
3. Resolve all challenges because the key wasn't actually lost, get your original bid back, and get the actor's bid.
Seems like this is the only solution that works, since it makes it a zero-sum game. I like it, good braining.
The resulting cat-and-mouse game would double as a replacement for SatoshiDice. Also, it'd let the network clean up dust and recover money sent to invalid addresses.
It's a good strategy. But then you need there to be a stable equilibrium state that doesn't cost people too much money, not sure if the present system has that?
