If done right, even unsubsidized, this could have the same expected return as a standard interest bearing savings account, but with with increased volitility.

If done right, even unsubsidized, this could have the same expected return as a standard interest bearing savings account, but with with increased volitility. Instead of giving a tiny amount of interest to everyone (proportional to their balance), you lump it together and select a few people to give it to (in either quantity or probability proportional to their balance). Right?