To expand my comment above and answer Tobias , I will add here the full answer.
After the initial check, I decided that you were bleeding fast. Simply put, the relationship between kinetic energy and velocity is E = mv^2 /2 , so after taking the velocity derivative you get
delta_E = mv delta_v
Then, depending on how energyloss defined, you can establish a relationship between delta_E and energyloss . For example, in most cases energyloss = delta_E/E_initial , then the above ratio can be simplified as
delta_v = energyloss*v_initial / 2
This assumes the time interval is small, allowing you to replace v in the first equation with v_initial so that you can get away from it for what you are doing. To be clear, delta_v is subtracted from velocity.y inside your conflict block, not what you have.
Regarding the question of adding air resistance or not, the answer depends on this. For small initial incidence heights, this does not matter, but it may begin to deal with less energy loss due to rebound and higher incidence points. For 1 gram, 1 inch (2.54 cm) diameter, smooth sphere, I plotted the time difference between and without air friction and drop height:

For materials with low energy loss (80 - 90 +% energy), I would think about adding it 10 meters or more, a drop in height. But, if the drops are below 2 - 3 meters, I would not worry.
If someone wants calculations, I will share them.
rcollyer
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