Ubivis: I just had an idea to improve the fight on top.
1st price: $9.99 Game
2nd: noting
3rd: $5.99
Alternative suggestion: $9.99 game for 1st place, $5.99 game for the LAST place, a sort of "consolation prize" for the person who either gets betrayed the most or notoriously fails backstabs ;P.
Like I said, though, it would be best for every point to matter, since with the current system the 2nd place is worth exactly nothing and as such - betrayal is cheap. If a person were to have a choice between getting $5 or both people getting $3 each, antisocial behavior would actually have negative impact on the other person and would be more "greed" than simply "trying to win".
Also - assuming our community is nice and altruistic (and the above "every point matters" system), we could provide an additional incentive for betrayal by making it anonymous and only announcing how many people chose to betray each round. While the total gain would still favor cooperation by everyone, it would take one rotten apple to upset the entire system, threatening to collapse into 0 points for everyone.
A slight alteration of every-point-matters could also be interesting: making it so that every 6 points (two cooperations) can be spent on a $5.99 game and every 10 points (two betrayals) on a $9.99 one. Of course - we'd still need quite a bit of contributors to get enough funds for this but that's one of the reasons it would be so exciting to watch (and play) ;P.
So, for 6 people with 5 rounds we'd need $90 (or $72, using the "slight alteration") (although the most hilarious scenario would be no one winning anything >:3)... which would mean each person ending up with 15 points, 1 point away from 1 $9.99 game and 1 $5.99 game (although this point could easily be gained if that person chose to give in and betray "just this once" ;P).