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I presume its receiving the trading fees from pancakeswap, my view is one of the roles of the DAO is to encourage liquidity of the SPS coin, and by taking rewards for itself doesn't achieve this.

Then who or where would the rewards go to and how does that discourage liquidity? The Dao is taking the risk by being a lp provider, If the Dao auto reinvested the rewards it earns...wouldn't that be more liquidity?