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This is the model some crowdfunding platforms like Kickstarter work with: they call it "all-or-nothing funding" [1]. They mention the same benefits, reduced ris

by cdirkx 7y ago

This is the model some crowdfunding platforms like Kickstarter work with: they call it "all-or-nothing funding" [1]. They mention the same benefits, reduced risk for backers if the target amount has not been reached. [1] https://help.kickstarter.com/hc/en-us/articles/115005047893-Why-is-funding-all-or-nothing- https://help.kickstarter.com/hc/en-us/articles/115005047893-...

skosch 7y ago
Even better – economists have already worked out how to create this kind of investment incentive in a mathematically optimal way: https://medium.com/coinmonks/breaking-down-buterin-hitzig-and-weyls-liberal-radicalism-paper-ba5192248b2 https://medium.com/coinmonks/breaking-down-buterin-hitzig-an... https://poseidon01.ssrn.com/delivery.php?ID=496096085110074019115095081120088101099083089080001063109072009065124020093117081111098062036040112046109096073096098017093097054090040049087077113024113105089119087021082085016115010126091010068024093080087019000109083031024070005027011112082116102069&EXT=pdf https://poseidon01.ssrn.com/delivery.php?ID=4960960851100740...