I am reading Thaddeus' paper on GIT and flips (https://arxiv.org/pdf/alg-geom/9405004.pdf), and I am confused with a claim in the begining.
Let $R$ be a finitely generated integral algebra over an algebraically closed field $k$, and $X = Spec~R$. Choose a $\mathbb{Z}$-grading on $R$. (It is possible to find such grading because it is possible to define a $k^*$-action on $X$). Let $z$ be an indeterminate, and define a $\mathbb{Z}-$ grading on $R[z]$ by $R_i \subset R[z]_i$, and letting $z \in R[z]_{-n} $ by some $n \in \mathbb{Z}$.
Why $Spec ~R = Proj~R[z]?$
Clearly, this has something to do we the grading on $R[z]$, because, if $R = k[x]$, then with the usual grading on $k[x][z]$ we would have $\mathbb{A}^1 = Spec~R = Proj~R[z] = Proj~k[x][z] = \mathbb{P}^1$, a contradiction. I am failing to see in this example, how the grading really works.
Any help would be appreciated.