Giftfile Project Primes Decentralized Gift Economy

belmo writes "Last week, the Giftfile Project unveiled developer documentation and reference software for the giftfile system. This system enables producers and supporters of computer files containing nonproprietary intellectual works to participate in a gift economy. Tax deductible lump donations, made to nonprofit intermediaries, can be allocated to these files in an automated and efficient manner, supporting transactions as little as .01 USD. Nonproprietary intellectual works include free software, music, and literature. To use the system, you don't have to go to some web site and register--it's decentralized, built on open standards, and does not depend on any for-profit entity. The project is currently targeting free software developers to test the system, help make it accessible to other computer users, and be its first participants."

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Re:How long before....

[/dev/kev]

RTFA. Donations are to "giftpools", which are non-profit organisations. Producers of giftfiles can apply to the giftpool for a "grant" of the amount of donations which have been allocated towards their giftfile. The grant may be subject to taxation, however the donation would be eligible as a deduction. It is, however, futile if you donate $500 to your friend and then claim back $500 in a grant which came from him (via the giftpool). In fact, it's pretty stupid, since the giftpool takes a small amount of the money for their operating costs.

From the last link in the story:

... other participants in the giftfile system make allocations to giftfiles as described above, yet do not produce giftfiles themselves. The way they gain privilege to make allocations is by donating cash to a giftpool. Such donations are tax deductible, because giftpools are nonprofit entities chartered to fund nonproprietary works.

and

Be aware that giftpool grants may need to be declared on your taxes.