That incentive will work for the first X hacks, after that it'll be "oh so you found one too?". The glory will go to the first people, like this Joanna Rutkowska.
Microsoft have to keep the energy focussed so hacker #53 feels there is still a point. Otherwise s/he'll shut up and wait until the release to see if the vulnerability still exists and do something much more "satisfying" with it.
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