The Liquid Democracy reference article from the English Wikipedia on 24-Apr-2004
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Liquid Democracy

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Liquid democracy is an implementation of direct democracy which incorporates elements of a representative democracy. Every person can vote directly on measures, but they can also, if they wish, transfer their voting right to a proxy who may make the decisions for them with regards to specific issues or categories of issues. It can also be considered a sort of participatory democracy. No government utilizes this method at this time.

Some votes may be "live." They wouldn't just have one tally, and then a decision made. Rather, they would be continuous.

For example, consider allocations- determining who does purchase ordering, and what it's spent on.

If a donor donated $2,000 to a project, then some algorithm could decide, based on the amount in the pool, how much of it was allocated to whom. Perhaps at the level of $2,000 in the pool, $50 a day is split up among the allocators. The allocators, in turn, are determined by the percent of votes they aquired for themselves. If people purchase the things they said they would purchase, they retain the votes that they had, and continue to receive the allocation. If they go bad, they are cut off from additional $50 allocations.

Difficulties include determining topical boundaries (if you divide votes into categories), and determining the eligible voters.

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