The fee in my opinion should be higher. $100-500 to discourage low quality proposals. That is unless there are competing proposal systems being worked on besides the Blocktrades design. In which case they'd have to compete.

I'm not currently in favor of funding it by way of inflation or dilution unless the design includes supply sinks. In other words, does it lock up Steem? Does it burn Steem? Does it generate a reduction in the liquid Steem to balance the cost in inflation? If it does that then a case can be made.

I think all proposals should have a business plan section. In that section the developers of the proposal should indicate whether or not there is a revenue generating mechanism to their code. This could be locking up Steem, burning Steem, or similar. If it's just code for money with no revenue plan? I don't think we can afford to do that at this time.

Prediction markets give something back in that it expands the economy. It allows new ways to earn and spend Steem which can increase demand for Steem. The proposal I don't really know the impact it would have on the price of Steem or the supply of Steem. If it can be done in such a way that at every opportunity it locks Steem up (reducing supply) then I'd be for it but if it means more Steem being sold to pay for more developers then this is more downward pressure on the price of Steem which discourages the share value.

In other words, people want to get paid in stocks but then the price of the stock goes to zero eventually.