How are the reward tokens generated on the DAO?
I don't really understand. If I back a project it gets funding right? Are the managers of the project required to "give back" to the DAO if the project is very successful (economically speaking)?
Reward tokens are created on a per proposal basis and awarded to current token holders and stay with them even if the holder Splits. They can be claimed through getMyReward()
Ideally, the project the contractors develop should be what pays the DAO through payDAO(). For Slockit's Universal Sharing Network, the Slock contracts themselves pay the DAO automatically whenever they are hired. The value of that money is added to DAO.rewards balance.