A potlatch is a gift-giving feast practiced by indigenous peoples of the Pacific Northwest Coast of Canada and the United States, among whom it is traditionally the primary economic system.
Dorothy Johansen describes the dynamic: “In the potlatch, the host in effect challenged a guest chieftain to exceed him in his ‘power’ to give away or to destroy goods. If the guest did not return 100 percent on the gifts received and destroy even more wealth in a bigger and better bonfire, he and his people lost face and so his ‘power’ was diminished.” Hierarchical relations within and between clans, villages, and nations, were observed and reinforced through the distribution or sometimes destruction of wealth, dance performances, and other ceremonies. The status of any given family is raised not by who has the most resources, but by who distributes the most resources. The hosts demonstrate their wealth and prominence through giving away goods.
Only rich people could host a potlatch. This was a trial by gift giving. The people who gave the most lavish gifts were the winners. Families would go into debt in order to buy gifts.
In Australia we call it Christmas.