Hi all,

My response to Robert below is a bit long, but I hope various folks in
the community will take the time to read this, weigh in, let me know if
I'm really clear, if there are questions… It would be great to get some
others to give us feedback by putting these issues in your own words.

On 06/19/2015 05:45 AM, mray wrote:
> 
> 
> On 18.06.2015 17:02, Aaron Wolf wrote:
>>
>> I don't see why we *need* losers. I think we *accept* that there will be
>> losers and that's okay. Snowdrift.coop is largely a consensus-building
>> engine that coordinates the community and discourages fragmentation.
>> Those qualities are good. But I wouldn't say that having losers is
>> *necessary* for our success.
> 
> I guess we are almost completely on the same page here.
> "need" might be the wrong term here, we rather have to expect and accept
> (or better embrace) them.
> The "needing" part was actually more related to the fact that we need to
> offer many projects to choose from. If just the big well known players
> (aka. non-losers) are available we don't trust our own system to prevent
> spending money ineffectively. Remember we want people to rather support
> many than few projects. The incentive to chip in should be low.
> 
> Also Snowdrift should give the community a *new* voice, not just echo
> the status quo.
> 

I agree that low-risk of pledging (it's small, and won't grow unless
others join and help!) is an important element for us. I don't think
it's the primary focus though. I don't think we *have* to embrace having
lots of "losing" projects, although I *do* think we need to accept that
it will happen some.

Following up on both this and chat on IRC. I think I can make this fully
clear, and I had been working to express all this in the current
writings already, but it doesn't help to reiterate:

We want to be conscious of the vague long-term, but we really need to
focus on immediate goals: get launched, fund ourselves and our early
projects, iterate, respond to concerns…

We must avoid excessive discussion / decision-making that is based only
on speculation. We will see how things go and react as we test more with
real projects.

Those things said, I see it this way:

There could be projects that fail to get critical mass regardless of our
network effect. In other words, they simply don't have enough community
support. We can provide guidance about how to best reach out to
supporters etc. but we can't make every project succeed here.

Now, the concern about star projects "winning" such that it causes other
projects to "lose" *only* happens in zero-sum situations. If the total
donations from the community one month are $8,000, and next month a
project that had gotten 10% of that now gets 25% of the same $8,000 —
that is a zero-sum game with winners and losers. But if a project grows
from 10% to 25% at the same time as the total community donations grow
by 10x (to $80,000 in this example), then, in that case, the massive
success of the one project does not take away resources from others.

How can the total size of the pie grow? Well, our primary goal is to
reach more total donors. However, we *also* want to encourage patrons to
increase their budgets. We want patrons to feel that *because* so many
others in the world are helping, it is *worth* it to figure out how to
donate more than they otherwise would.

Today, I might budget $100 a month at the most, but I would switch that
to $500 or more if I saw that doing so was truly making the most amazing
changes to the entire world for the better. I can say this with
certainty: my view of my own budgets and prioritize *will* change along
with changes in the world and in the behavior of others. Many people
deny this, but science bears this out as one of the most predictable of
human behaviors.

So, it is possible, in principle, that everyone continues to increase
their budget to cover all their pledges and never ever hit a limit.
Realistically, people will eventually hit limits they simply don't feel
comfortable lifting. At *that* point, THEN it becomes true that
successful star projects could make others lose donations (depending on
the precise ways that people handle their budgets at that point — there
might be a general *leaving* of the popular project as people feel less
inclined to support an already successful project, and that might
completely offset the popularity, we don't know; it will probably vary
greatly case-by-case).

Regardless of the details, when we get to the point where people are
hitting their limits and not willing increase their budgets any further,
we will be a real success. Such a point will definitely not happen early
on. So, **our goal today is to get to that point**!

For our presentation to the public now, our answers about these issues
need to focus on the idea that we work to grow the pie, not just manage
how it is cut up. There will be successful and unsuccessful projects
(because that happens in any market), and our network effect encourages
democratic collaboration around the most deserving consensus projects.
But the system will not *initially* take money from less popular and
give it to more popular because that will only happen once we're
successful enough already.

We can then express that we *do* have ideas for ways to address the
issue long-term. We want a balance where the winner/loser effect is
somewhat mitigated (such as through patrons setting up multiple separate
budgets, for example, if I budget some money for music projects and
another budget for software, that means projects in one area or the
other won't compete for my funds — and we *might* even let people set a
budget that only includes a single project; those things will not be
implemented at launch and aren't certain). We also want to figure out
ways to help niche projects work well in the system, such as possibly
offering them a different minimum base pledge setting.

To summarize our key presentation points for NOW:

* We acknowledge that network effects have winner-take-all properties

* But, at least for a long while initially, there will not be zero-sum
competition

* We will continually grow the community and encourage patrons' generosity

* By the time zero-sum issues become a real concern, we will be a
success, and we will have real-world data to use to adapt and adjust the
model and address concerns instead of designing based on speculation

* Of course, a degree of long-term winner/loser dynamics is *acceptable*
because we care more about FLO succeeding overall than about having
every project succeed. Reducing fragmentation and coordinating everyone
together is good. However, we *do* recognize that there are both pros
and cons to winner-take-all types of network-effects, so we intend to be
sensitive to the issue, and as a cooperative, the community will have
the power to adjust the models and priorities to best balance all the
concerns.

So, again, we have no *need* for their to be winners and losers. What we
want is FLO projects at Snowdrift.coop to win and proprietary projects
to lose (or switch!). The winner-take-all effect we want is for it to
draw money away from proprietary projects. We want people to increase
their Snowdrift.coop budgets by reducing their spending on proprietary
things.

I do still agree with and like the idea that the market itself and the
network effect *allows* us to have lots of projects and let the natural
market system and network effect choose winners. I do think that's
important and positive. But we need the language to talk about reducing
fragmentation, coordinating, consensus etc. and not use the language of
zero-sum competition.

Cheers

-- 
Aaron Wolf Snowdrift.coop <https://snowdrift.coop>
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