Prediction markets can be used for the purpose of inducement crowdfunding. I believe Ryan Garner first wrote about the concept of inducement crowdfunding here:

This idea is far more powerful than people realize because it can and will be used to place bounties on anything and everything. This will allow us to predict threats but with the large number of soft targets in society it will also make it harder to mitigate threats.

Inducement markets will expose the worst of human nature not the best. This is because the cost to both the backer and the participants of tearing down things is far lower than the cost of building up things.

You need a different kind of market to build things which acknowledges that building takes time, effort, requires the participants to have a long term view and creates several small milestones which extends out rewards over time.

Inducement markets are not like this which is why they promote and incentivize destruction rather than creation.

Written by

Incentives architect for TandaPay

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store