The reason dividends were going up was due to initial deployment not because reinvestment could keep up with difficulty rise. Leaving the reinvestment rate alone means investors lose less, and you still make a healthy profit.
Spot on! In the case of 65/35 dividend/reinvestment we cannot keep up with difficulty. This is why we are doing this IPO and changing our strategy, so we do keep up with difficulty and be able to grow large.