Proposal to sell Bancor 3 token surpluses for ETH

Correct, there are 24m vBNT in existence that can be use for voting and the foundation abstains from voting. vBNT is generated by staking BNT in v3 and anyone can buy BNT from the market to vote in the Bancor DAO.

Has been made more than clear in

and the three strategies that have been proposed all generate fees via Carbon which go towards deficit reduction. Any and all surplus eventually is used to acquire BNT to buyback and burn in one form or another and some quicker than others.