# Re: Crowdfunding: Assurance variations

From: Andrew Durham <yodrew@gmail.com>
Date: Wed, 14 Mar 2012 20:34:06 +0000
Message-ID: <CAP5m0mSQrFvT4QhcbmqiC2ZqdwoxE=sJjVvv7hQWbq0KyUg++w@mail.gmail.com>
To: Fabio Barone <holon.earth@gmail.com>, public-webpayments@w3.org
```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
```
Received on Wednesday, 14 March 2012 20:34:55 UTC

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