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You say: "they have paid out "progress prizes" of 50k apiece to 6 teams in the last month".

Where did you get this information from?

You are totally wrong.

A SINGLE progress prize of $50,000 will be given annually on October 2nd each year until 2011 for the best improvement of the last year, which is at least 1% better than the previous year, unless there is a grand prize winner (total of 10% improvement), in which case the contest ends.

Read the Rules on that site.

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