Out of interest, why do whales receive more coins which lets them setup more masternodes? If I own 1 masternode or 10, my share of the supply is increasing at the same rate. Do you mean the whales can get the next node faster? But i can just put the difference into a shared service and take a 20% hit which is not much different?
There's faster compounding interest for whales since the wait time to setup the next MN is shorter. Yes, in theory one can use a fractional MN service to improve returns. In practice I bet it's not done very often due to needing to trust the MN hosting counterparty. And the 20% hit eats returns a little bit.