My suggestion is that this code could be modified to check if the indexer is on cooldown and has a target effective cut set. It could then use that target effective cut to derive the corresponding reward cut from the indexer stake and delegator stake and use that instead of the value specified in the “reward cut” parameter.
That would probably make this a lot more complicated than it needs to be, and that also means a major revamp of the reward distribution algorithm, which is being discussed in another thread.
To summarize my position, I don’t think it’s wise to fiddle with the reward algorithm right now, since it’s a lot more complex than the cooldown algorithm, and should be handled with care.
If we went that route (allowing for the target effective cut on cooldowns to be used instead of the reward cut) then it would be much easier just to revamp the system to use effective cut instead of the current reward cut, but that comes with some drawbacks (and probably a lot of headaches for the developers implementing it 
). It would also mean that we won’t be supporting both strategies discussed above (curve vs fixed effective cut), but rather only allow for fixed effective cuts when using a cooldown.
Feel free to check the other thread though 