I understand you can get a tax deduction by donating to open sats so maybe that’s better if you are a big fish. But why wouldn’t someone just send sats to individuals if they wanna contribute to their select projects

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Yes, but the network effect issue is in play. It's been reeeeeally harsh on some people getting rejected. And it seems obvious that there are a huge conflicts of interest and have been for years. 🤷‍♂️