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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."

9 of 68 comments (clear)

  1. How Typical by Anonymous Coward · · Score: 5, Interesting

    How typical. When a news story concerning **AA, specifically how it is going to sue people who download songs from the internet (I would not be shocked if the songs were Bach Chorales), everyone gets ticked, and we have veritable screaming matches.

    Then, when a theoretical solution to the problem of how [composers|programmers|authors] will get compensation, NO ONE CARES!

  2. How long before.... by Anonymous Coward · · Score: 4, Interesting

    ....two people set up projects with an absolutely useless piece of free IP (like a 52x52 jpg of pure white), and start "donating" equal amounts to each other just for the tax deduction?

    1. Re:How long before.... by gid13 · · Score: 3, Interesting

      I don't know about the U.S., but in Canada, technically money received from gifts is taxable. And while that's never really enforced, it probably would be if someone pulled THAT.

    2. Re:How long before.... by gbulmash · · Score: 4, Interesting
      You need to be a 503c non-profit corporation to qualify for donations to you to be tax deductible. It's not easy to qualify for 503c.

  3. finally, a workable alternative to paypal by wyldeone · · Score: 3, Interesting

    It is nice to have a free alternative to paypal, which forces registration on the user, as well as takes a percentage of what the developer makes.

    --
    In the beginning the universe was created. This made a lot of people very angry and is widely considered as a bad move.
  4. But I'm REALLY CHEAP ! by MajorDick · · Score: 3, Interesting

    Hey I use a ton of GPL software, I wouldnt PAY for it
    Im serious no flamebait, , BUT I also write and contribute software under many free licenses, so THAT my gift back to the "Open Source Movement" if you want to call it that.

    I have seen "Free" software that it is almost EXPECTED by the author that he get a "Donation" for it, kinda irks me and usually It gets dumped, If you want to charge for it FINE but dont try and hide it behind the guise of free software then BEG for green.

    I wonder how much problme REGULAR donations to EVERYONE involved in now free software would , I dono taint ? them to where they change to only a paid programming model ?

    1. Re:But I'm REALLY CHEAP ! by sploxx · · Score: 2, Interesting

      The system is similar to patronage. I think this will work for the most visible projects, but the small developer has to take unpaid spare time to bring sth. up.

      This works only as long as there is a sizeable middle-class (educated, non-greedy and interested in more than 'making money') somewhere in the world.
      If poverty spreads in the western world, the FLOSS movement would grind to a halt.

      [rant]IMHO, the (mostly) hobbiest nature of of the free software movement is a very valuable thing in itself. Yet, big money is trying to destroy it because it is in it's way. This is the most shameful thing about all the lawsuits, and patent abuses against the FLOSS world. Freedom to what one likes - But do not come into the way of my guaranteed revenue stream![/rant]

  5. The Gift of Vapor by l0ungeb0y · · Score: 4, Interesting

    After reading their vacuous website it seems that they themselves are collecting donations by means of snail-mail only. Which seems completely laughable on the face of it.

    And even if they emerge from vapor-mode and do indeed set up this system, it seems geared torwards institutions rather than individuals as you'd have to use a "gift-pool" ie: a centralized body and set aside fundage into that BEFORE you can assign a portion of those funds to a recipient. And that's not to mention the restrictions placed on those who may contribute their work by requiring contributers to license with a handfull of licenses.

    Personally, I think PayPal already covers the online donation territory in a far less political and more trustworthy fashion. Anyone can set up a donation link for any reason whatsoever and collect fundage from the willing. No restrictions on what license is used, what type of media it is or anything else for that matter. And furthermore, you don't have to lock up funds in your paypal account to be able to donate, paypal will transfer from your bank account/credit card automagically.

    I think the developers would be wise to reconsider their very niche-centric and restrictive objectives if they are to expect any real usage by both contributors and benefactors.

  6. I've thought about this a bit... by Exantrius · · Score: 2, Interesting

    I'm not sure that this is totally on topic, but it kinda has to do with gift cultures and micropayments

    Micropayments-- the Exantrius way:

    1) pay a certain amount to a "host" (this doesn't work quite right unless you have central hosting-- think sourceforge, or fanfics.net.) You can either do it so that it's what the user wants, or a flat rate, or whatever.

    2) take a couple percent (5ish?) for server and bandwidth costs.

    3) Every time you visit a "story"/informational page, you rate it (good, bad, indifferent), defaulting to indifferent if you don't choose any. every page you visit gets one "vote" for a bad, 10 votes for an indifferent, and 100 votes for a good.

    4) At the end of the month, tally the number of votes from each user-- and find out each share price-- 1 vote == $.0032 or whatever. now place it in the voted's account. this would be per user-- if someone had 10000 votes and $10, their votes would be worth $.001. likewise, someone with 10 votes and $10 would have $1 shares.

    5) Hold money in an account for each user. This works best in a closed system-- think a bbs or blog community or something-- probably more like fanfics.net or something with creative or real other value. when the voted makes a certain amount, they can cash out (so you don't have to send $.18 checks to people). say $20. Plus they can use their acct balance to pay their "subscription" fee.

    2 ways for service to make money:
    1) "skimming off the top"-- as long as it's kept low-- 5% is high, ideally it'd be in the sub 2% range.
    2) collect interest on money-- invest it in short term investments or just put it in an interest bearing account.

    Ideally though, the system would be set up as non-profit, with the hope that the people that set up the system are decent contributors, so they can make their own money... so make just enough money to pay expenses.

    This would work best in a situation where everyone can be a contributor, and noone has "special" priveleges, except maybe a "top N stories" by votes. that means that the guy that runs the site would have to place his work in the system with everyone else.

    This is just the most basic idea-- I've actually played around with this, but I'd need a large hunk of data in order to get numbers right... I think people would join a community for a small fee if they had the opportunity to get money back-- this also guarrantees that *ALL* the money goes back to users, and it gives an incentive to not only be an active member of the society, but a good contributing member.

    Of course, I would make it all available without registering/paying, but with ads, and no contributing-- no reason to charge people who are just passing through...

    Or possibly I'd let them contribute, and have a counter on their front page "If you registered, you would have made this much: $TEXAS"

    Unfortunately I'm lazy, and frankly don't particularly care about doing data systems as much as I used to love them... If anyone can put this into effect, I'd love to hear about it...

    bob[at]drunkmonkey]dot[org /ex