The idea of a DAC is to be profitable and not burn value like bitcoin. Dilution must be regarded as an expense, and if it exceeds income, the DAC cannot be considered profitable, though that is arguable. Dilution is not always bad, but it is easily corrupted. While it can begin with good intentions and reasonable calculations and promote high growth at early stages, the access to 'free money' for a time can often lead to more and more whimsical decisions aided by a stock price that becomes more speculative on the back of each growth story, till it collapses. Thats not an inevitability but it is a danger.
If possible i think paying expenses from income is a better discipline. So i wonder if the following can be considered that might help avoid the need for dilution.
1) the DAC earns income from transaction fees. Can delegates apply this to core team development?
2) if more funding than this is required short term until DAC income builds, can a fund be raised for this purpose, with investors in that fund receiving a higher proportion of future DAC income for until a reasonable rate of return on those funds have been achieved. Such a fund would be akin to a non recourse loan.
These approaches would not lead to an unprofitable DAC.
In the end if dilution is necessary there should be strong rules upon it to limit the extent of capital consumption and uphold the integrity of all future decisions regarding it.