PennySeed - a "Split-the-Bill" Crowdfunding Model

I’ve been working on an alternative monetization model, where you get exactly what you ask for and everyone pays the same.

With this model, a Creator would specify how much they need, a deadline, and a minimum number of pledgers. People would pledge (but not specify an amount), and if the minimum number of pledgers are met, then each pledger pays an equal share of the target amount.

For example if you need $1,000 with a minimum of 100 pledgers, then each pledger would pay $10 if there are 100 pledgers, or $5 if there are 200 pledgers, incentivizing pledgers to share the content and get others to pledge since they’d be paying less.

I describe the many applications of this model (from funding events to hardware startups to co-working spaces), as well as a simple implementation on the GitHut repo.

I also posted a video demonstrating a proof-of-concept.

The implementation itself doesn’t matter that much (in this case I used Stripe and Web3 via MetaMask to reduce processing fees as pledgers approach micropayments), since the idea is pretty simple, but the implications can be powerful.

This is a departure from the monetization schemes discussed where people would pay a flat fee and it would get distributed amongst Creators, but I thought it’d be interesting to share.