Lasso Transactions – Fund Creators and Combat Free-Riders Without Copyright
10 days ago
- #copyright-alternatives
- #crowdfunding
- #smart-contracts
- Lasso Transactions are proposed as an alternative to copyright to fund creativity and combat the free-rider problem.
- Traditional donation models are criticized for their voluntary nature and susceptibility to the free-rider problem.
- Lasso Transactions involve smart contracts where donations support future installments of a series, with funds returned if the creator fails to deliver by an expiration date.
- This model incentivizes creators to produce content timely and reduces donor hesitation by ensuring refunds if projects aren't completed.
- Unlike copyright, which encourages rent-seeking, Lasso Transactions focus on funding new content, promoting continuous innovation.
- The system can be applied incrementally, such as for Early Access games, and includes mechanisms for depositor veto or reputation damage for non-delivery.
- Potential applications extend beyond creative works to larger projects like infrastructure, with examples given for funding a train line in Denmark.
- Key benefits include incentive alignment, encouragement of ongoing creation, transparency, and market-driven accountability.
- Vitalik's Harberger’s tax is mentioned as a related concept for similar purposes.