Legality is pretty irrelevant I think. It's a decentralized organization and the reference to dividends was just to explain the mechanics of Ponzi schemes better.

I've seen a number of Ponzi like schemes shut down, both in response to explanation and discussion of why they're harmful and in response to persistent downvoting to make them unprofitable, so there is progress being made. I have to wonder about some of the large stakeholders supporting harvesting though. I'd love to hear their perspectives on the subject. You'd think they'd have put thought into the platform somewhat proportional to their stake in it.