guild bank does not work

[zack-bitcoin]

Piling everyone's money into a shared pile, and then trying to agree on how to spend it cannot be a secure way of spending your money.

The problem is that there can be countless proposals for how the money should be spent.
According to Arrows Impossibility theorem https://en.wikipedia.org/wiki/Arrow%27s_impossibility_theorem there is no way for us to make a good choice on how to spend the money, if there are more than 2 alternatives.

The correct way to raise money for public goods is with dominant assurance contracts, like on page 14 of this pdf http://bitcoinhivemind.com/papers/3_PM_Applications.pdf

[zack-bitcoin]

Dominant assurance contracts solve the free rider problem, because each person is incentivized to participate in proportion to how much they think the public good will benefit them.