I’ll start with this as it’s something I’ve seen in almost every community. What makes you think that Set and DFP would go to all this trouble launching a DAO around their core products, only to sell all their tokens in the first year? Both teams have a reputation on the line and both have very high profile products elsewhere namely Token Sets and DeFi Pulse’s website, so acting in a short term and selfish way would be extremely damaging to them.
Having said that, as @Kiba mentioned Set are currently covering the overheads and doing the heavy lifting in terms of smart contracts and kicking the project off. If a number of team members wanted to take a salary from *some of their distribution that would both be totally justified and insufficient to move the market (9% of rewards have already been supplied thru liquidity mining vs around 3% for the teams).
Fundamentally the $INDEX token should be seen as proof-of-work in that you can obtain it by participating in activities that exist to benefit the Coop, e.g liquidity mining, contributions to marketing etc. The Coop doesn’t exist to appease people that market bought at $15 and now feel it’s someone else’s responsibility to make the number go up. The community is a group of contributors who are working together to create something that they know will be valuable over the long term, despite it not having been decided how we get there just yet.
In this post I tried to discuss my own thoughts about how the token accrues value and things we might currently be missing, including ways to make the token stickier through governance mining. You’ll see there are two main options, using $INDEX as a risk backstop and rewarding governance participation. Both act to incentivise holding the token and using it in ways that benefit the Coop.
The reward allocation changes from the 7th December to a much lower rate, if you have any other solutions that might add to the flywheel effect it’d be great to have a discussion around them.