LoveMachine is a StartUp by SecondLife founder PhilipRosedale that wants to apply a new CodingCostModel.

LoveMachine has built an application that is open to the public where they do all their work as a team – the WorkList. By going here, developers can find or suggest tasks that they would like to work on for LoveMachine. The developer can place a bid for each WorkItem that he wants to work on.

The GoldOwner can define so-called runners, who can spend the budget and accept bids. After a bid gets accepted, the developer can start to work and complete the WorkItem. Soon after completion and CodeReview, the developers get InstantGratification and are paid with payment services like PayPal.

More at http://www.lovemachineinc.com/development-process/