Several things here need to be done.
First off, the speed of the feed needs to be more matched to the usage rate
so that the dancer doesn't move fast to either limit. This cuts down on the
need for starting and stopping the motor.
Second is that you want to use a universal motor rather than a shaded pole
type. This will allow a speed control to be used so that the motor keeps
running. A router speed control with it's speed knob being controlled by
the dancer position will then keep the dancer more in one position and thus
your feed rate will tend to stay constant. If your usage of the wire isn't
constant, the dancer will eventually go to the stop position where the motor
stops.

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Why isn't there an Ozone Hole at the NORTH Pole?