1) Will this technology be open sourced at launch?
The plan is to open source it
for sure,
might not be immediately at launch. We may delay open sourcing the code so that we keep our first-mover advantage. We're of course completely open to the code being peer-reviewed by a mutually agreed upon third party at launch so that it can be verified the rewards are as stated / no hidden blocks / etc. At the same time we read twitter- we can clearly see pump/dump groups already talking about taking our code and cloning it for their own terrible reasons and we don't support this kind of clone, pump, dump stuff.
We do fully support the open source community so this will
definitely be open sourced- the question is when and I don't have an immediate answer right now.
2) Merge Miners have the tendency to dump the coins that they are given...because they are mining Litecoin or something and any additional coin they get is a free gift to get more Litecoin in my example. What can we do to discourage this?
Not sure this really needs to be discouraged - coins need to be generated and released onto the market and that's what miners do; I can't think of any fundamental reason why you should want or need miners to keep hold of the coins they generate. I just hope they set the difficulty right so that the coins are released onto the market at a pace which demand can keep up with. If I remember correctly we're waiting on an update about that.
You both raise valid points. We are taking into consideration this can be mined alongside any other Scrypt coin [merge-mined] and thus there will most likely be MORE Syscoin on the market than you would expect from a normal reward schedule because its literally being mined all the time, on top of whatever the current "hot" Scrypt coin of the moment. This is actually a good thing for the Syscoin network in that it will have an enormous hashrate and will be very stable for the types of financial services we want to decentralize. At the same time we recognize some of the pitfalls that come with merged mining and to @profitofthegods point we are changing the reward schedule to significantly reduce the amount of coins introduced to the market across the entire schedule. Also, Syscoin has regenerated service fees for miners that will accrue on top of the reward for a given block and the revised schedule accounts for this more accurately.
This update will be finalized and public tomorrow night,
we were trying to get it out tonight but couldn't get everyone together in time, expect a big update in this regard tomorrow evening (team is meeting at 9pm GMT-5 for those setting their clocks, 60min mtg).
no need for me to elaborate further unless more specific questions arise. 
