Just to be clear I think N^2 is generally better, but not with the current distribution of Steem.
Glad to know that, although I disagree with the second part of your statement.
I hope we can get to some understanding.
Giving away free Steem is devaluating the whole platform.
How is giving away free Steem better than letting stakeholders sell their Steem to market price?
There are people ready to buy those Steem, how does giving them away make them anything else than less valuable?
In a world with honest people who don't vote on themselves to get "free money for nothing", a simple linear curve, aka n would produce a 1 share 1 vote proportional payout. @steemitblog - (link)