I don't think the pyramid scheme is the issue here(if there even is one)
A way bigger issue would be the fact that it IS in fact a centralized system - a centralized system is the complete opposit and against EVERYTHING bitcoin and cryptos stand for.

You should rethink that. I like the approach that everyone receives a share based on their hash-power - so basically this works like one single huge mining-pool.
However, if this works as a single mining pool, why should everyone invest their Hashrate into finding a block, if it doesn't even matter WHO finds the block, since the reward is share-based. You could in this case use the hashpower for actually usefull calculations (scientific, prime, SETI, molecular simulations, ect...) all those operations also return a messureable result, so the reward would be based on those calculated result shares.