There are only two options here -
1) To fork back to block 7000, in which case all transactions back to that point will be lost, along with a LOT of confidence in the coin.
2) To clearly announce to everyone a fork at a coming block, say block 7200 (we are at block 7158 as of writing) and allow the 'mistake' block rewards to stand. This would give everyone a chance to switch to the new wallet and would be less damaging to the coin. The only downside is that the total supply of 1bill will be reached sooner than anticipated.
Personally, I think option 2 is the fairest to all, it gives an unexpected bonus to those miners that have been supporting the coin in its early stages and does not cancel all transactions that have been made since block 7000. You can guarantee that anyone who loses a transaction due to the devs' basic math error will not come near this coin again and you know what they say, bad news travels round the world before good news has got its boots on..
Can you cancel out the rewards given for past blocks and replace them with the correct reward amount? In other words, make it like the mistake never happened and continue onward with correct reward amounts? Surely the network can recognize where mistake coins are and "convert" down to the true amount?
That would only work if the pools haven't paid out yet. And then even, you need to make sure the pools destroy the coins themselves.
I stopped the daemon/pool on dedicatedpool as soon as the issues arose.
People are really mad at me, but I can't deal with these issues anymore! This needs to be fixed ASAP!