Via Retr0id:
MAIM, a DAW plugin which applies MP3 compression in realtime (free, open source)
MAIM is an audio plugin that circuit bends an MP3 encoder in real time, disrupting the control flow sending data down unexpected paths to create digital distortions. With heavily hacked real MP3 encoders at its core, MAIM gives you the full gamut of digital distortion, from the realistic to the fantastical.
