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Contraction
No matter how we do the contraction, there should be the ability to protect the top 10 players from a roster. That would help add talent to the weaker teams and would draw some talent from the All-Star teams, but it wouldn't completely penalize the managers who have worked hard to put their teams together.
I think if there is a wide disparity between top teams and also-rans. Why not let the weaker teams make two or three picks in the reallocation before the top teams fill out their rosters.