hopefully low enough not to encourage hacking accounts for the bounty, and non-negotiable ("take it or leave it").
I think you already answered your own question. This will most definitely lead to more account hacks and even though you mentioned you would keep it a fixed fee, it could also lead to higher ranked accounts(even if we use new passwords every so often to help prevent hacks) being targets for a higher ransom/reward/bounty.
I was just about to post this same line of thought. This offer will lead to an explosion of account theft. Just think of it, If I can steal 4 accounts per day, and willing to accept the $25 for recovery, then I get $100/ day. Cool deal

As good as the steps are, it is rather an incentive for account theft than a solution. IMO