I need you to do me a favor: please keep an open mind and reserve judgement until after you've thoroughly digested the ideas I'm presenting here. These are not my ideas, and I have no connection to this project. I hope to do them justice in representing them accurately and as clearly as I understand it all.

Please don't be dismissive. Please don't jump to conclusions. I would not be posting about this if I did not believe it has tremendous potential to reshape the digital economy, and therefore everything that governs how civilization progresses in the next century. Dramatic, much? Yes, but I hope I have your attention.

I'm not posting this as a plain link, because the website looks incredibly sus. Just trust me for a few minutes. Links are at the end.

(No generative AI was used to write this post.)

What is PrizeForge?

PrizeForge is a financial service that can be best thought of as "Representative Crowdfunding" (my term, not theirs). Like direct crowdfunding (e.g. Kickstarter), it lets people pool their money to support expensive projects that would otherwise be impossible to fund. Similar to Patreon, it can also be an effective tip jar for much smaller things that would otherwise go unrewarded.

The innovation is two-fold: first, contributors never move alone. As a contributor, you set a ceiling on your weekly payment. This is the "enrollment" amount. However, the actual amount of money disbursed each weekly cycle is the amount that is successfully "matched" with other contributors. In the simplest example, if I wanted to enroll for Tildes at $20/week, and one other user enrolled at $5/week, the disbursement would be the sum of the matched funds: $5 + $5. In this way, nobody ever pays an unfair proportion of the total, and small donations become an integral part of funding allocation. Additionally, like how philanthrophists often match charitable donations to meet a fundraising objective, matching provides a powerful incentive for individuals to contribute by making individual contributions feel more significant, since any money you part with can be doubled by another contributor. The more you put in, the more others will too. (PrizeForge calls this algorithm "Elastic Fund Matching". The full algorithm gets considerably more complex, but they have a neat visualization on their site and videos.)

Second, unlike existing crowdfunding and patronage systems, creators and companies do not receive fund disbursements directly. Rather, representatives ("Delegates") send the money to the people and organizations that should receive funds to deliver value to the stream's contributors.

"Won't delegates just siphon funds to themselves?" you ask. Well, yes, that will 100% happen at some point. Corruption is a human problem that can't be solved with technology alone. PrizeForge aims to provide mechanisms to allow the community to be very dynamic, so contributors can easily switch to a new representative—for any reason. Additionally, tools for transparency in how the money moves would go a long way in keeping delegates accountable.

In the context of open-source software, delegates should be experienced power users who are well equipped to evaluate features and bugfixes, and then can award the prizes to developers according to their best judgement.

The use of a representative has many advantages over direct crowdfunding. Someone highly invested in a software product has valuable experience and would be more effective at setting priorities for features and bugfixes. An experienced and trusted delegate would save developers time having to parse the requests (...demands?) of individual users who may not be able to articulate what they really want. Also, if a developer or company stops doing what people want (providing value to the people who care), then funds can flow to competing alternatives in a very granular and dynamic way, as the delegates shift funding and/or new delegates arise.

If we could pick a delegate here for Tildes, would anybody really object to @cfabbro?

These trusted delegates already exist, everywhere! We just haven't been able to cooperate in the right ways to delegate our individual power, so they can truly move the needle on funding the projects we care about. PrizeForge is, I believe, the first truly sustainable funding model for community-owned and directed open-source.

Addendum

Watch this video first! Before you get scared away by the terrible scammy-looking website: https://www.youtube.com/watch?v=SO46oEdlkY8

The FAQ: https://prizeforge.com/faq

The company's github page: https://github.com/positron-solutions

Looks like just two people, with Psionikus doing all the promotion and running accounts. The company is incorporated in South Korea. They've got a bunch of emacs tooling, and I believe the PrizeForge concept originated out of a desire to improve the funding/development process of emacs, then the lem editor. They also apparently have a bit of beef with the FSF due to emacs politcs. Check out the last FAQ for a fun easter egg.

The sub-reddit: https://old.reddit.com/r/PrizeForge/

The Hacker News comment that took me down the rabbithole: https://news.ycombinator.com/item?id=45036360

Bonus thoughts:

• What's really crazy is that this is not a crypto or blockchain project. You can do a simplified version of the elastic fund matching with just money, pen & paper.
• This financing scheme is basically an idealized utopian voluntary tax system. I can imagine a granular delegate system being extremely effective at making politics incredibly boring. Imagine electing a local representative only to have potholes fixed in your area, using only the funds earmarked for fixing potholes. It would be so much simpler to keep them accountable. Either the roads are crap or they aren't! Where's the money, bub?! Why've you got a fancy new lawnmower?! I want my $2 back!
• If this reaches critical mass, it ends surveillance capitalism and digital feudalism. I don't want to live in Black Mirror, and this seems like the way out of that future.
• I would really love it if we can establish a funding stream for Tildes. I know I can donate to Tildes directly, but it would be a great test run to help PrizeForge get operational and build credibility. I only need one other crazy person. Isn't the internet great? (My credit card has not been stolen btw)
• The password login is still in development, so you have to login via Google SSO. I absolutely hate using Google SSO but I get it from a developer perspective. Proper auth is hard and companies like Tailscale took the same path and still don't support password login. (My google hasn't been hacked either fwiw)

Hi Tilderinos,

I head up a small startup and we're looking to get some support for our data security. Up until now we've worked with small mom and pops that didn't have any requirements, but a few of our new clients have full data security teams and our infrastructure and policies/protocols aren't up to snuff. We reached out to a few consulting firms and they quotes us between $80-100k to get things set up and run us through a full SOC2 review. As a small company we don't really have that type of budget, more like $40-50k. I stumbled upon Vanta and Drata as alternatives and had meetings with their sales folks last week. Both of their offerings from setting up our protocols to monitoring and getting us through a SOC2 were only $16k.

Are platform based companies like Vanta or Drata enough to get us off the ground while we're still getting set up? Has anyone worked with them before and have any feelings one way or the other? Should we be signing on with a security consulting company - be it at a lower rate if we can negotiate it?
This is all quite new to me and any insight folks here can provide would be incredible useful.

The theses I would like to discuss goes as follows (and I'm paraphrasing): during the last 15 years, low interest rates made billions of dollars easily available to startups. Unfortunately, this huge influx of venture capital has led to no perceivable innovation.

Put cynically, the innovation startups have brought us across the last 15 years can be summarized as (paraphrasing again):

• An illegal hotel chain destroying our cities
• An illegal taxi company exploiting the poor
• Fake money for criminals
• A plagiarism machine/fancy auto-complete

Everything else is either derivative or has failed.

I personally think spaceX has made phenomenal progress and would have probably failed somewhere along the way without cheap loans. There's also some biotech startups (like the mRNA vaccines that won the race to market during covid) doing great things, but often that's just the fruits of 20 years of research coming to fruition.

Every other recent innovation I can think of came from a big player that would have invested in the tech regardless, and almost all of it is "just" incremental improvements on several decades old ideas (I know, that's what progress looks like most of the time).

What do you think? Do you have any counterexamples? Can you think of any big tech disruptions after quantitative easing made money almost free in 2008?

And if you, like me, feel like we're stuck on a plateau - why do you think that is?