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Is it safe to say: as the mining gets harder to do (more work required for less SmartCash) and the number of people holding SmartCash grows significantly, we can expect the SmartRewards to shrink every month going forward. In other words, in the future years ahead, the SmartRewards are likely going to be less than 1% as interest in the currency grows prodigiously.

Yes. That's what is supposed to happen. But at the end of the day, it depends on how many coins will be mined each month and how much funds will be eligible. It is also possible that the project finishes earlier than expected and the community budget might turn into its own reward system to incentivise holding.

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