I thought the Pareto distribution was most famously associated with 80-20? Of course you can change α to get whatever ratio you want but this is the first time I heard of the 50-1 ratio being used.
20% of 20% of 20% (or 0.8%) of people will hold 80% of 80% of 80% (or 51.2%) of the wealth.
In binary, most significant(left most) bit is twice the magnitude of the previous bit. So that bit (or person) would contribute and get compensated accordingly.
Would also be similar to segment trees with each leaf node having a value of 1 with parents recursively summing the children?