It's simple. We contribute letters and you get points for completing a word. So every time you have to pick between either finishing the word (if possible) and claiming the points or making the chain longer and the jackpot larger. If no word is possible (e.g., if the letters are XALIR, and nothing starts with XALIR), no one gets any points and we go to a new word (we don't have to drop all the letters in XALIR, so someone else can comment E and get IRE- then starting a new chain that can't reuse any prior letters).
When a word is finished, next letter starts a new word.
Words (foul language will be appropriately censored) GO - 2 letters, won by trinasi IS - 2 letters, won by Liechtensteiner SIMP - 4 letters, won by zargon SPOOK - 5 letters, won by Ammaren FIZZOT - 6 letters, won by Ammaren CHICKEN - 3 letters, won by l4v.r0v (old rules)
I got an idea for a more robust chicken: you get the points for word length when you finish a (Scrabble-valid) word. That way you don't need anyone to start a word.
E.g., here's how it could play out: Loxiiv - N me - I Demos - G Rick - H -> Rick gets 5pts for NIGH, next letter starts a new word. So you can either be bold and continue the word or try to end it now for all the points.
With those new rules in mind, let's give it a shot: