So, you're gonna add it to version 2.1.4 tonight?
Just kidding. I believe your thought process is right-on when it comes to this topic. You need to think it ALL through, probably starting at the bottom of the prize list, and working your way up...potentially more than once. Analysis of the current prizes, new changes, and re-analysis, etc. until things become stable. Then, based on some set of new/future changes, do it all again. Definitely a little more complicated that it looks on the surface. The "dynamic" aspect really applies from the start of the tourney until the complete end, so it probably wouldn't just be one or two simple changes. Fortunately, computers are generally good at these sorts of number comparisons & rule applications, IF the overall rules can be written correctly.
It would be nice if it could be worked out, though. Good luck!