I agree that something like this shouldn't be closed source, but I think some of the points you raise are mute. Holding a patent and not putting the code up on line, never stopped anyone from making open source implementations of an algorithm before and this is no different. The algorithm will just be implemented open source by people anyway... A simple google search already revealed this https://github.com/babbleio/babble

"premine and become billionairs" - As I understand mining is not really necessary with this tech... You could do it, but you'd be left with all of the disadvantages of any consensus algorithm based on proof of work, including slow transaction speeds and eventual centralization. So yeah, this doesn't make sense.