Yes, code bounty is the name for what I described. Unfortunately most services only tend to last for a few months it seems. Must be a difficult business plan, perhaps because of the small demand, or high accounting overhead.
As for the effectivity, I’d use code bounties for things that wouldn’t happen otherwise (due to lack of time, funds, or personal interest). At the minimum, it would allow users to simply understand how much certain tasks cost, which is a great answer for “Why doesn’t VCV have X module or Y feature?!” And at best, it would allow users to prove that niche ideas (using 14 bit midi in 1.0? as an example again) might not be niche after all, if it receives the $XXX.