1. I thought this was pretty clear in the proposal, but it does not cost us $200k to do this. We would be giving up at least $200k in revenue by having the tokens be burned, which is what we are giving the DAO the opportunity to cover.
2. That is certainly an option if the DAO does not want to do it as proposed. As a player I would prefer the items be given out as prizes to players for burning tokens, many of who may choose to keep the prizes and not sell them on the market, rather than the company just selling them on the market and likely reducing prices.
3. If the proposal does not pass (which is fine!) then we plan to just sell the cards. As far as burning the proceeds, the company does need funds to continue to operate, so that would be difficult for us. We could burn everything above $200k in revenue, but that would still be $200k less that would go to the SPS token than if the DAO covers that amount. Ultimately it's up to the token holders which they would prefer though.
4. That is what we do with the soulbound reward cards. It doesn't work with non-soulbound cards as it just gets exploited by bots. If that's what you're looking for I suggest you try traditional "free to play" games which do precisely that.