We have
$M = \frac{M}{1+d} = M \frac{1}{1+d}$
and $d \in (0,1) \implies 1+d \in (1,2) \implies \frac{1}{1+d} \in (0.5,1)$
thus we are simply scaling, "stretching", "squishing" by a little bit, probably to make it fit with other data. The scale is simply changed a little. Everything but the magnitude is left intact, even the proportion of one point to another remains. I think scaling is correct, or down-scaling since it can only remain the same or get smaller.