Is this a correct recap:
* Eth/Stable Token is held as collateral for competition-specific tokens.
* These competition-specific tokens are used as collateral in candidate-specific tokens.
* Neither of these bonded contracts will buy back the tokens, trading takes place on secondary markets if at all.
* When the contest is resolved (by whatever means) the original collateral is distributed to the holders of the winning candidate-specific tokens?

If that’s correct then it’s only a subset of the original funders who are holding candidate-specific tokens (those who invested their competition-specific tokens into the winning candidate’s bonded contract). That means that the funders of the contest are just betting on who will complete the project without contributing anything to the actual competitors (besides the signal of confidence). Is that the intention? It sounded like this mechanism was meant to reward the winner of the competition, not the funders of the competition.