But somewhere in between too few and too many edges, there is a critical edge density where the problem undergoes a pretty rapid phase transition from essentially all colorings being valid to only very few colorings being possible and that is where the hard instances are mostly hiding.
Still, this problem is NP complete, as it is in NP and you can trivially reduce SAT to it.
x, y ∈ { 0, 1 }
Constraints 2x + y ≤ 2
-2x + y ≤ 0
Maximize x + 3y
You can easily check that y = 0 must hold, for y = 1 one of the constraints gets violated whether you have x = 0 or x = 1. So the optimum is x = 1 and y = 0 with a value of 1. If we drop the integer constraint and have x, y ∈ [0, 1], then you will find that x = 0.5 and y = 1 also satisfies both constraints - together with many more pairs - and the optimum value is 3.5.To win the prize, you will have to do this with something like n⁶ variables and constraints where n is the number of cities in the problem. And I would guess that you might need maybe about 5 to 10 cities to construct a counter example, but that does not mean that you have to actually deal with all the constraint equations, the construction of the weights will do all the work.
They are proposing an algorithm to solve the travelling salesman problem and this algorithm in essence fixes a set of boolean variables of the form visit city X in step Y. They are however using linear programming, which has an efficient algorithm but only constraints the variables to be between 0 and 1, not to be either 0 or 1. With variables constraint to 0 and 1 only one gets integer linear programming which is NP-hard. Nonetheless they claim that their algorithm can solve the travelling salesman problem with a polynomial number of linear constraints and offer $10,000 for a problem instance that can not be solved.