Blobby (the developer) has ~20,000 NUTS. Every other user had to buy their own NUTS. Every user has equal opportunity to obtain NUTS, with all new NUTS being distributed to users farming on Squirrel.
Squirrel team does not receive any fees for themselves, 100% of insurance fees are automatically redistributed to the community!
When squirrel first launched on ethereum in 2020 the initial supply of 400k NUTS were distributed via a Uniswap listing as a 100% fair launch, estimated price around $2-3. Then in 2021 when squirrel was migrated to BSC the old holders received equal NUTS on the new chain, any extras were burnt.
While squirrel is growing it is not feasible to cover 100% of the funds for all farms. The insurance amount allocated to each farm is displayed underneath it. This coverage is split proportionally between all users of each farm based on their percentage of the pool. To compensate users for currently only offering partial insurance, Squirrel is distributing NUTS relative to the insurance fees that they are paying. These appear as 'NUTS' on every farm. As the TVL grows and Squirrel matures, the insurance coverage of each farm will be increased & the NUTS bonus will be reduced. See the roadmap for more details.