An #EconomicDemocracy is a market economy where most firms are structured as #WorkerCoops.
I disagree that the 2 options are the only ones available. We could have a funding system with aspects of quadratic funding and artistic freedom vouchers, which allows the organizations developing the software to remain private organizations. Quadratic funding is basically a public matching fund for contributions to public goods such as OSS with a special matching formula that matches small contributions from many sponsors at a higher rater than more concentrated ones
As an anti-capitalist, I disagree. He conflated the role of the employer with the owner of the means of production, which led him to the mistaken conclusion that rejecting capitalist appropriation requires rejecting private property per se. It’s really the employment contract that enables capitalist appropriation and exploitative property relations. There are other reasons to oppose private ownership, but that is another story. The classical laborists’ criticisms are spot on not Marx’s
What you are looking for is some sort of variant of quadratic funding. It is a mechanism that is specifically designed to overcome the free rider problem that public goods like FOSS suffer from. It solves it by matching private contributions to these public goods using a special formula that aligns incentives, so that everyone that knowingly benefits from a public good has an economic incentive to contribute to it because more contributors leads to a higher level of matching