Digg’s Mike Maser explains in a blog post: “The more an ad is Dugg, the less the advertiser will have to pay. Conversely the more an ad is buried, the more the advertiser is charged, pricing it out of the system.”

Maser said the idea is to provide advertisers with immediate feedback on whether an ad is relevant to the audience. It also allows the audience to directly influence what kind of ads are displayed, by offering advertisers an incentive to run ads that people like, and discouraging them from running ones that people don't like.

Maser said Digg is still in the “very early stages” of working with advertisers and building the system.