Pretty sure I heard that the SPS DAO had yet to receive it's rewards from the Whitepaper but that is really a separate discussion.
The DAO (imo) needs to start earning yield on its capital. It will need this to be sustainable in the longer term. By definition, we as SPS stakers are owners of the DAO right down to voting proportionately based on our SPS stake what the DAO does with its funds.
I posted a much longer reply to this under davemccoys replys to MichealB but essentially, the DAO soaking up some of this inflation during the period of high inflation goes a long way towards reducing the liquid supply of SPS and thus, if demand remains constant, raising the price of SPS.
Otherwise we're looking at SPS with a market cap of around $25,000,000 right now and our 'numerator' of the liquid SPS out there is growing by 30,000,000 a month. That's roughly 3% more liquid SPS a month at current rates. That means that all else being equal, SPS will go down 3% a month.
We definitely need to solve the demand problem, but the SPS DAO soaking up these funds takes them off the market, reduces the inflation by saving the funds for later when the community really needs them and will help in the short term by stemming some of the issues with the fact that the current distribution of SPS far outstrips the demand for it.
RE: SPS Proposal - SPS.DAO should stake an additional 28,000,000 SPS for a total of 30,000,000 SPS