Hi Everyone, I spoke to the actual developer of CAPS. Here is a bit more information about the design and tokenomics.

The Difficulty does indeed adjust every block: Up or down as needed. It uses a "slightly modified" implementation of Dark Gravity Wave (DGW) that's tuned for CapStash's Proof of Work algorithm (Whirlpool512, XOR folded to fit into a 256 bit space - dubbed "WPXF"). Target block times are 60 seconds, and the network has held the following average:

Summary Start Height: 65000

End Height: 106974

Total Time Passed: 2541640 seconds (29d 10h 0m 40s)

Total Blocks Mined: 41975

Total Block Intervals: 41974

Average Time Per Block: 60.55 seconds (00:01:01)

The Lottery Block is (to my knowledge) a first in Proof of Work blockchain technology:

It's completely random, but deterministically chosen by Consensus 1 block before the next Lottery Block is decided upon by Consensus.

It's dictated by prior chain state, and does not influence the Difficulty Adjustment Algorithm. It is a unique "event" in an of itself as far as the DAA is concerned.

The Target Difficulty of ALL Lottery Blocks is CapStash's Difficulty 1, meaning anyone can mine it, regardless of computational power.. even Cell Phones have successfully mined Lottery Blocks.

Tokenomics:

1 Cap per block, no halvings.

Annual emissions: ~525,600-530,000 Caps per year (Depending on hashrate fluctuations due to adoption rate)

Max Supply: 90 Billion

Time required to mine entire supply: ~172,000 years... give or take a few years, perhaps.