Extremely useful. Great community service. I still think I like the fiftywords contest best - for a brief break and a short, sharp challenge. But it's not paying out any prizes. I wasn't even aware of this, until I realised you didn't put it up. Still, for a competition where you only get an honorable mention there is a surprising amount of people always taking part. That's also encouraging (in the vein of community spirit).
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The fiftywords contest is fun, as is @mariannewest's daily freewrite challenge. And they both foster great community spirit, which is just as important as payouts.