How do you account for delegated SP and bots with this?
I don't think the huge drain on the rewards pool is coming 0.01 at a time from the people who engage in F4F and the 1% of people who control 93% of the SP probably wouldn't be very affected either.
The delegated SP doesn't really matter. With this system your 100% upvote, even being worth $100 would only give you a $5 self vote, but your voting power would go down substantially, taking longer for you to get back up to that 100%, $5 vote. After 3 self votes in a day, you would have only 55% voting power, which would take more than 2 days to regenerate to 100%.
Bots are a very different animal, and it would be difficult to implement this sort of restriction without a lot of work. Perhaps a vote for the same author multiple times in a short period could be seen as equivalent to self upvoting, and then the same or similar weighting rules could apply. This would affect a lot of users who vote for their friends often unless there is a way to distinguish between a bot account and a normal account.