Wait what? Unless I'm missing something won't it just end in a stalemate when 2 teams each have at least 1 balloon?
Eh?
The original contest was from DARPA in which if you find a balloon, you get a wad of cash for yourself. MIT is making this a team effort whereby a whole bunch of miscellaneous people join the MIT "team." The point of this team is to get people to win money not just by finding the balloons, but also by referring people who find balloons, and referring people who refer people who find balloons.
If you find a balloon, great, you win a bunch of cash. If you referred someone who finds a balloon, you win a bunch of cash/2. If you referred someone who referred someone who finds a balloon, you win a bunch of cash/4.