[reuben_tate]

There are a few reasons why the credit distributions are different for different reasons. Although this first one is not necessarily the best reason, such a practice has been done for most tournaments on FFR. And even looking at other tournaments/competitions outside of FFR that have competitions at different divisions of skill (say like a amateur and a pro bracket), usually there is a difference in prizes there as well.

Next, one can argue that D7 players have worked harder to get to where they are at. You might say that the D_1 players have worked just as hard as some as D_7 players throughout the duration of this particular tournament and that's a fair point. However, those that have worked very hard will likely be on their way to entering into a higher division which will have the promise of higher prizes anyways. Also, it's perfectly "fair" in the sense that everyone has started off as a D1 player to begin with (perhaps inside or outside of FFR) so current D7 players were getting smaller prizes earlier on in their rhythm gaming journey. Imagine a parent trying to figure out gifts for two children of their children that are 6 years apart in age. A gift that's suitable for a 14 year old likely wouldn't be suitable for an 8 year old. However, if the 8 year old got the same/similar gift as their sibling did when their sibling was 8, then that's perfectly fine.

Putting morals and stuff aside, it also makes sense from a pragmatic perspective. Higher prizes for higher divisions helps to disincentive sandbagging and helps to incentive people to play their best.

The participation prize is the same for each division since all it is supposed to represent is a token of appreciation for completing the tournament. I don't particularly have a reason to appreciate D7's participation more than that of D1's participation.