If we are assuming every GNO holder would participate, then the supply is inflated by 5% percent, but the same value is represented by GNO. Hence, the price will drop by 5%.
I have a counterproposal:
The GNODAO puts x% of the supply into a lock. All the future rewards of these “locked GNO”, such as token allocations from future token creation events such as this one are claimable by “active gnodao members”.