Being that I’m in the US, and I know many of the team members from Set are as well, they wouldn’t be able to implement this, unfortunately. It would have to be something done by the community, and likely implemented by people in the community.
Assuming it occurs, then the protocol can get pushed through, and the network just “accepts” the new norm. I’m totally with you though on this.
Otherwise this becomes a similar situation to UNI, MKR, COMP, etc. It’s pointless to hold the token currently, so there needs to be a functionality that requires people to want to buy the token, potentially receive some form of reward, and allow the protocol to function as is.
One concept that I had thought of which occurs similar to yEarn’s strategies for Vaults is to charge a management fee. So when someone goes to mint DPI or buy/sell, they are charged a management fee of potentially 25-50 basis points. This would be direct income going towards the Index treasury, which can be used for whatever- those funds would also all be in ETH.
These funds that would be then received can be distributed to $INDEX stakers for a backstop on the underlying assets (as laid out in this post The $INDEX Flywheel), or be used to buyback/distribute $INDEX in the same fashion.
Otherwise the use for $INDEX will frankly go to the shitter- as almost everyone would look at this as a DeFi Pulse/Set Protocol governed economy, and no one else will want to participate in it. Frankly, I wouldn’t as a community member…