It seems to me that this solution has a fundamental flaw - yes, there will be a 120M $(£ € whatever) budget, but there will also be a dictator in charge of this budget, and God help us if he will turn out to be not so benevolent. And with this big money any person, unless he's naturally saint - will become not benevolent, later or (more likely) sooner.
And lets think wider - it seems to me that outside of popular distros and their communities there is a dozen of other free and opensource software pieces that could benefit from regular donations, and it has enough fan users to provide good stream of donations if given a handy way to do this.
So, let's give all these people an option to choose what exactly they want to support, and option to select if they want to do a one time coin drop, or a regular check sending.