Wouldn't pool participants that use this extension to steal rewards be exposed to the pool simply due to their work being consistently challenged and thus lost?
i.e: The pool would notice that certain participants contributions are conflicting with other discoveries, and ban such participants?
Fees cost almost nothing to hostile miners. With a 20% fee, they get 100% of their hashrate through the theft, and 80% from the pool. So long as you pay anything at all to new miners doing this attack is beneficial.
i.e: The pool would notice that certain participants contributions are conflicting with other discoveries, and ban such participants?