I was under the impression that pseudo shares are not included in the share chain, only shares with diff above the p2pool diff are included.

Another question. Let's pretend for a moment the p2pool share difficulty is at 10. A miner submits a share with difficulty 20 and the share goes into the share chain. During payout, is the value of the share capped to the share difficulty at the time of submission (10)?

I'm trying to build a proxy pool that'd would be able to payout to miners on a pseudo share basis (much less variance for miners at higher risk to pool operator). And perhaps have a vardiff system based on the pseudo shares. Has anything like this been attempted before?