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My proposal would be that a researchers grant money is reclaimed (100%) and given in part (10%) to the researcher that finds it shoddy or fraudulent.

You would probably need an army of lawyers for that, as there are no clear rules for deciding what makes the research "shoddy". Even Einstein papers on General Relativity had bugs in them.

Error free would be a high standard for all papers. I am not proposing that.

But if you take money for your work (which I doubt Einstein did) I would expect higher quality. Just like if you had a contractor work on your house. If they did Fraud or Shoddy work you'd withhold payment or you might sue. Governments are bad at this - but would be better if others could sue on their behalf.

As for needing an army of lawyers - it would likely depend on how much the grant was for.

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