Thanks for reading, Mike. I think you are completely right. Things will start happening behind the scenes and regular users will have no idea where their great returns are coming from!
I wrote a little something that breaches the surface of LUNA incentives here : https://medium.datadriveninvestor.com/how-do-algorithmic-stablecoins-work-5309f26be1d3
And a little more on validators and staking here: https://medium.datadriveninvestor.com/everything-you-should-know-about-validators-on-terra-bcaac44d530