I think current Russia-Ukraine war is a perfect place to implement such system. It’s an attrition war, there is not many goals which are not reduced to “kill and destroy as many as you can”. There is a strategic aspect: Russia pays exorbitant compensations to families of killed soldiers, decades of income for poor regions. So, when Russian soldier dies, two things can happen:
Russian government dumps unreasonable amount of money on the market, contributing to inflation;
Russian government fails to pay (for 1000 and 1 stupid bureaucratic reasons), which erodes trust of would-be soldiers and reduces Russia’s mobilization potential.
I can easily see how such system could fail terribly in, say, Afghanistan (if you paid for every killed terrorist, there is an easy loophole “kill civilian, say they are terrorist”). It’s fine for current stage of Ukraine war.
Also I don’t see how kill markets contribute to ability of military to coup. Payments are made in purely virtual points, soldiers can’t spend them on something else.
There is a conceptual path for interpretability to lead to reliability: you can understand model in sufficient details to know how it produces intelligence and then make another model out of interpreted details. Obviously, it’s not something that we can expect to happen anytime soon, but it’s something that army of interpretability geniuses in datacenter could do.