I still have to be convinced that bounties for projects in a ballpark like this are a good idea: imho they set flawed incentives and are a waste of resources, because most likely people won‘t team up and work together on a single project, but rather split and rush to a solution on their own.

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You could also do it as a tender. Where individuals or teams could apply and then you select the offer you like most. That would limit the amount of resources wasted as funds will be locked for the winning offer.

Want to split it then?

As long as people are aligned and there aren‘t multiple teams working on the same solution it‘s fine. Having a prototyping phase and aligning people after that could prevent that.