1. as soon as it gets enough traffic/attention it will be run over by spammers or other self-promoters. You'd need at least a way to treat some content as more valuable then other. That would require moderators, who need to be vetted, e.g. by reputation. Take a look at 24h worth of http://www.reddit.com/r/all/new/, expect 100 submissions per minute, and try to figure out how you'd managed the submissions from a quality point of view.

3. if news users pay out existing users who are in dept it sounds like a http://en.wikipedia.org/wiki/Ponzi_scheme. If the contract says you have dept but don't need to pay within a certain timeframe then don't be surprised if users signup and never ever pay.