Err - isn't that going to bloat the blockchain somewhat having every block have many outputs.  Maybe you will only get 1 or 2 of your friends investing so it might not be such a big issue.

Who is going to want to pay $1000 for this magic box to mine a coin that gives all the investors extra cash for free and where do you get the many thousands $$$$ investment to get this box manufactured.  Sounds crazy.