My fix isn't as much meant to ensure that no-one will get their entry punished, but rather that everyone has a reasonable chance of avoiding the punishment with proper effort.
The current system is somewhat volatile in that increasing the median by 1 means that previously median-ranked games become punished. So people are sort of encouraged to get their game ranked significantly above median, which itself eventually leads to increasing the median. Also, the voting/rating other entries isn't 100% efficient - the score depends on the game's own ratings, not the author's votes, and not everyone returns the voting favour. So it further compels people to increase the median. It might help the number of votes but make it more stressful/frustrating for participants (and perhaps make them seek shortcuts by leaving lower quality votes).
My fix is meant to stabilise the system. People might aim for the 80% threshold (or maybe 90%), but then they still end up on that shaky ground. However, those who get their votes at median level are in a comfortable position - their entries can still handle extra 25% of median (e.g. increasing from 16 to 20) and don't need to rev up the median (potentially punishing other entries in process) to make sure they're on the safe side.
If we add to that:
- a clear information on game's page about a current median, threshold and what it means for the entry
- a search mode with entries voted below median (not threshold, because median is safer) sorted by author's coolness (to add extra cause-and-effect between voting for other entries and getting own entry voted)
then everyone should be able to safely avoid punishment by putting roughly a median-sized effort. And given how active some voters can get - note that a voter can single-handedly increase the median by 1 by voting for all entries - median-sized effort is by no means insignificant.