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I remember reading about this a while ago and I thought that it could work for a while but eventually you will attract and accumulate a bunch of cutthroat sociopaths. How do you even assess performance objectively without smart people gaming the system?

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They don't, of course, people game the system. The trick is recognizing that a good fraction of people in tech at a company like Netflix could disappear tomorrow along with their work and the company would not even notice. So it is not that the fire someone and other people protest because they recognize they have lost "talent". Life goes on, paycheck comes and they are all ready to code again.

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