I would like to thank NationalPotato and xxmetalmartyrxx (and few others too actually) for the entertaining and informative read. I believe NationalPotato brought up legit questions, and xxmetalmartyrxx provided meaningful answers (which could have been provided in a more respectful way though).

@NationalPotato: your concern regarding the utility for FLUX is reasonable, but I assume you are looking at things from a viewpoint of a person who is more in a traditional financial market than in a cryptocurrency. In a crypto world "inherent" value is often something intangible, and it is still unclear whether any of cryptocurrency offerings provide any 'inherent' value. If you look at it from Warren Buffet's standpoint, you will discard every single cryptocurrency in the world, including DAM, FLUX, ETH or BTC.

Look at it as a game. Its a game developers have offered, and the people agreed to participate in. The rules are openly described (both the code is open for everyone to check, and written text descriptions describe the rules quite well). So people are playing this game to entertain themselves, and to get some profit (and currently the profit is still high). They are playing voluntarily, and here you come and tell them "you are playing a wrong game, stop it".. Well.. its their game, they read the rules, they agreed to play. Let them play and enjoy the ride.

What will be the result of the game? The FLUX supply will inflate, for sure, it will lose value to some point. That's clear, and that's inevitable, as the supply still grows fast. Will it find its final balance at zero..? Maybe, like 99% of altcoins in the market, but not quite yet. It might take few months or years, or may never happen, as it highly depends on what the developers will do next with the project.
In any case, one intentional result of this process will be the distribution of the coins, which is essential for any crypto project. If the destribution is wide enough, if enough people will be amused by te game, and if the developers drive things forward to a next step (which should give additional value).