the hashes are not wasted.
Think bitcoin mining: your ASIC goes through billions of hashes a second. Does it submit every single hash? No, just the ones that meet the target set by the server.
Does that help?
Yes, thanks Killer, although it doesn't explain why one out of 16 hashes are taken, or is that a probability?
I'm now getting system:111 messages, this is my output for the previous block:
[MASTER] work received
connecting to 162.243.216.74:1339
system:111
connecting to 162.243.216.74:1339
system:111
connecting to 162.243.216.74:1339
system:111
connecting to 162.243.216.74:1339
system:111
connecting to 162.243.216.74:1339
system:111
hash generated - 15802 / 1968 / 1683025740
connecting to 162.243.216.74:1339
system:111
connecting to 162.243.216.74:1339
system:111
connecting to 162.243.216.74:1339
system:111
connecting to 162.243.216.74:1339
[MASTER] work received
Edit: those messages have stopped for now, they are intermittent.