It encourages people to get #1. If they see something ridiculous like having to spend 4-5 hours to get #1, most don't bother and only do the activity for 20 mins to an hour.
Especially when you start 2-4 hours before the board is reset.

So people who wake up early and get #1, end up staying #1 throughout the day.
It's just kinda lame that people who wake up earlier are usually the one's who stay #1, except for summer's pk.

What I'd like to know is if this could actually work

Still seems kind of pointless to care about daily (i.m.o), there's literally no benefits except bragging rights..which i've never seen people do about daily. Only leaderboard that would seem super effected by waking up early is BK due to crowding...but again daily isn't rewarding anything