I can rephrase if it makes you happier. In the business world, as far as I'm aware, interest free loans are nonexistent. You either give up equity or you pay back the loan with interest.
The proposal doesn't add value, that's the problem. They are reusing Splinterlands assets and claiming they have layed a golden egg. The DOA/community has no obligation to bear the development costs of this game just because they are using Splinterlands assets and may or may not bring additional people to the game. They have no idea of knowing and their sample size is entirely too small to be making any claims.
While I agree the DOA in isolation is worthless, I disagree that focusing on financial return is wrong. While the DOA can be charitable, it isn't a charity. If it doesn't guarantee it's longevity via financial success, it won't be around very long.
Interest free loan, I think is okay, if you have a portfolio that can back up your promise. To make my argument much easier to chew, let's make a hypothetical situation that instead of Splinter Royale asking for the said funds for investment, it was actually Nintendo. Not a fake Nintendo company but the REAL Nintendo, in a kind-of collab scenario.
So, DAO would be producing the $50k and Nintendo would be willing to develop a Splinterlands mobile game called Splinter Royale, which is like Super Smash bros but with Splinterlands element like characters, rules, elements and other stuff. You will be creating your own team of 6 up to the allowed mana and you will fight in a side scrolling battle.
EVEN IF you don't see DAO getting back any $ from that investment, since the name "NINTENDO" is creating it and people know they've made good games, I think DAO and the community will agree and pass that proposal.
I think SplinterRoyale is selling off their possible game in the same concept that people will be willing to play it but the clear difference between their name and Nintendo, as a company, is that Nintendo's name has merits. And people would be willing to put money in order to be in their games or them making other's games.