I actually wouldn’t have too much of a problem with the Foundation managing the treasury in the early days, but that was never the plan and I don’t think this can even happen.
But even if it was possible, I doubt they would even want to do it, you can imagine how every single CKB they spent would be endlessly questioned and argued about by everyone, it would be a nightmare.
I don’t think anyone is even talking about or worried about the dilution, it’s not even a consideration imo.
The only downside to activating the treasury is that most of these extra CKB emitted every year will also be sold immediately upon being paid out, so there will be a constant sell pressure on the price that hopefully will be offset by the positive things that the treasury funds will achieve.
Also, the Foundation funding the development of the treasury system with some of their remaining funds is part of the deal I think.
If they weren’t doing this then treasury itself would have to fund this development in the future, then we’d all be complaining about spending the treasury funds on something that should have been developed with the ICO funding.