Re: Crowdfunding: Assurance variations

it made it much clearer, thanks
nevertheless you would have to implement a prototype
or visualize somehow to take it a step further?


best wishes


2012/3/14 Andrew Durham <yodrew@gmail.com>

> Hi, Fabio,
>
> Thanks a lot for your question. Describing the game in a simpler way
> helped me discover a big mistake in the rules.
>
> The mistake was in the bonus rate math. The bottom limit should not be
> 0%, but –100%. If the project fails, then a contributor with a 0%
> bonus rate will get no bonus, just her entire contribution. A –30%
> bonus rate would pay her 70% of her contribution back, with 30% going
> into the bonus pot.
>
> So subtract 100 from all the figures above related to bonus rate, and
> then they will make sense. Sorry for the confusion. If that doesn't
> clear everything up, then read on.
>
> It sounds like you understood what I said about Assurance and Dominant
> Assurance.
>
> Essentially, Cooperative Dominant Assurance goes one step further by
> enabling supporters of a proposal to help fund bonuses in case of
> failure. My proposal exploits all variables in real time.
>
> The game begins with the proposer's submitting the proposal and
> seeding the bonus pot. Afterward,
>
> the proposer can:
> - increase the maximum bonus rate (in case of failure)
> - increase the maximum profit rate (in case of success)
>
> a supporter can:
> - increase her contribution
> - decrease her bonus rate. Below 0%, this:
>   - increases how much of her contribution adds to the pot
>   - increases her profit rate
> - decrease how much of her contribution reimburses the proposer's
> seeding of the bonus pot
>
> The contributions and the pot both count toward the goal.
>
> Supporters with positive bonus rates are in a friendly tug of war with
> the proposer and supporters with negative bonus rates. Each side
> provokes the other.
>
> It would be good to have melodramatically opposed names for the
> positive bonus raters and the negative bonus raters. The Snidelys and
> the Dudleys? Black Hats and White Hats?
>
> I hope that makes sense. If not, I'll try again, maybe with something
> closer to your suggestion, like an example told as a story combined
> with math.
>
> Andrew
>