Thanks for the two questions! To briefly answer:
1 - You’re right. This proposal deals with AA DAO’s stewardship of the ATOM POL, not its main responsibility of distributing grants.
Regardless of whether or not the AA DAO receives a second term for its main responsibility, the individuals who comprise the multisig have agreed to continue participating in the multisig and continue to steward the ATOM POL position for another six months.
What does “stewarding” the ATOM POL position actually look like? Well, doing nothing. It simply means that AA DAO members are willing to keep their (distributed) control of the ATOM POL position for another six months, do nothing with it, and then either transfer it or return it to the community pool. (If Cosmos Hub wishes, the ATOM POL position may be transferred to Covenant much sooner than six months.) As such, AA DAO members have never been paid specifically to steward the ATOM POL liquidity and do not expect to receive payment for this small task in the future.
If you’re curious about the trusted individuals who comprise the AA DAO, see the Cosmos Hub forum post that proposed the founding of the AA DAO.
2 - Approximately $100K was paid to Timewave Labs by Stride Labs, to sub-contract them to build Covenant. The remainder of the grant balance was paid by Stride Labs to Informal Systems for an audit of Covenant. Covenant is an open-source public good for the whole Cosmos.