Better Keep the Twenty Dollars: Incentivizing Innovation in Open Source
Everyone agrees open-source software matters. Nobody quite knows how to pay for it. Using fine-grained data on ~100,000 GitHub users around the launch of the Sponsors program, we find that opting in (without money) raises output — but actually receiving sponsorship has a long-lasting negative effect on innovation, regardless of the amount. The decline shows up in community- and service-oriented work, not in coding effort: extrinsic rewards crowd out the intrinsic motivation open source runs on.