How would this play out if say more than 1000 people use diamond , there wouldnt be enought blocks for everyone to get even .8 per day?
0.8 per day is a 300 per year. To have that amount you need more than 1k dmd active in pos mode. For example now there are ~2.5 mln coins. ~1.1 mln in masternode mode. So theoretic ~1.4 mln in pos but not every holder have an apportunity to run wallet 24/7, someone prefere to trade on exchange instead of stake etc. All coins in pos mode mints ~640*0.82=525 dmd per day. So your_dmd*525/all_coins_in_stake_mode is your profit per day in longterm period.