I guess that's a nice concept, but it just generates one bad possibility:
It's the only market system where the consumer (ie, the donator) gives the money before seeing the end product...
For me, it would be easier the system used in donationcoder, it works exactly the opposite way, if the software is good, you donate, if you don't like it, you go elsewhere...
But from the developer's point of view, the "code ransom" system, just might be a better system, like that, the developer is sure to get the money before he put's himself to work.
IMO, the dc's system is the one that gives more trust to the donator (that, in the end, is the one that pays
), possibly it's the best system.
(or maybe a sort of hybrid system? don't know..)