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If rewards were paid out to people who lock up their tokens for fixed periods of time on chain, it requires those who need the tokens to be liquid to either buy more tokens, or not participate in capturing those rewards, and therefore not in the governance of the chain.

Trim-Bot Автор вопроса
Mo Z. D.S.
If rewards were paid out to people who lock up the...

But there’s no yield being distributed. It’s just printing tokens and diluting everyone who’s not locking tokens. You could argue for that but you can’t compare it to staking with an exchange…

Trim Bot
But there’s no yield being distributed. It’s just ...

Why is there no yield being distributed? The idea is that inflation is going to those locking up their tokens to vote, versus block producers paying whoever votes for them...mightve missed adding the above, I assumed you were familiar with this proposal.

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