I dunno, I think it's good the way it is, with the exception of the rounds. I think they should be removed altogether, as they are only confusing. You should just get paid by your referrals when they sign up, there is no need to constantly take everyone's money and move it up the pyramid. With the whole rounds thing, all the money in the system will eventually be owned by user #1, everyone else will lose out in the end. I honestly don't see the point.
Nope, it wouldn't. If user takes 50% of the round then his 1st lvl sponsor will only get 12% of initial round cost, 2nd lvl - 3,7%, 3nd lvl - 2.5%