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It sounds very similar to a game that was described in The Peace War by Vernor Vinge.

I hear ya, and I'm with ya.

I'm not changing my screen name.

Of course I hope people will send me balloon entries at http://red40k.com/ but there is a wiki that lists many other teams.
it is at http://redballoon.wikispaces.com/Groups.

I promise not to send iPods to people who enter at my Network Challenge website http://red40k.com/ unless we win, and that's how someone wants their $3000.

Actually the book "The First 20 Million is Always the Hardest" used an OS/machine similar to this.

You are always responsible for reporting income on your taxes, even gambling winnings and gifts. I just said that I would send it. I do believe that on my end the payouts could be considered a business expense.

Go Red40k.com

Red40k.com is the only domain you need to remember remember the 5th of December!
$3000 for the first submission of each of the 10 balloons if we win!

Go Red40k.com!

If you are actually interested in the money, submit your found balloon to Red40k.com to get $3000 for a single balloon if we win.
It's easier to remember Red40k.com

I'm starting one too. Red40k.com
If you see a red balloon on December 5th, submit it there for a chance to win $3000 if we win.
It'll even be open to the operators of the other balloon search sites.
So if you find out where a balloon might be, go to Red40k.com ok?

So what will you do if you happen to be driving along on December 5th, and see one of these balloons?
Will you actually drive past it without stopping, or will you whip out your [insert connected device] and try to get $3,000 from Red40k.com?

yes, I will get $10k from DARPA if we win.

One balloon has NO value to an individual without what I (or someone else) offers.

Go Red40k.com!

but perhaps you could find a single red balloon and win $3000...

Red40k.com will be setup to take balloon location submissions and paypal $3000 to the first email address associated with a correct balloon location, if we win the $40k.

So I just registered a website, and will set it up in a few days... if you are the first person to submit a correct balloon location, and if we get the 40k, I will paypal $3,000 to the first email address on the submission.