I'm learning about NEAT from the paper Evolving Neural Networks through Augmenting Topologies.
I'm having trouble understanding how adjusted fitness penalizes large species and prevents them from dominating the population, I'll demonstrate my current understanding through an example and, hopefully, someone will correct my understanding.
Let's say we have two species, $A$ and $B$, species $A$ did really well the last generation and were given more children, this generation they have $4$ children and their fitnesses are $[8,10,10,12]$, while $B$ has $2$ children and their fitnesses are $[9,9]$. The adjusted fitnesses for $A$ will be $[2, 2.5, 2.5, 3]$ and for B will be $[4.5, 4.5]$.
Now, onto distributing children, the paper states:
Every species is assigned a potentially different number of offspring in proportion to the sum of adjusted fitnesses $f'_i$ of its member organisms.
So, the sum of adjusted fitnesses is $10$ for $A$ and $9$ for $B$, thus $A$ gets more children and keeps growing.
How does this process penalize large species and prevent them from dominating the population?