View source for Gov/en/Portal:Economy/Subscription-Distribution

{{KidsIntro|This page explains how the monthly money is shared out.}}

= How Subscriptions Fund WikiDeal's Future =
=== ⚠️ No Guarantee ===
The financial projections and scenarios presented below are '''for educational purposes only''' and represent '''no guarantee of future performance'''. They illustrate how WikiDeal's subscription model could sustainably fund operations under various growth assumptions. Actual results may differ significantly. These projections are part of WikiDeal's transparency commitment and are included in full in the subscription agreement.

=== 📋 Subscription Access Rules ===
* '''Free access:''' WikiDeal is freely accessible — no subscription needed to browse, read wiki pages, or explore contract templates.
* '''Required to sign:''' To sign a contract on WikiDeal, both parties must be up to date with their monthly subscription. If months are overdue, those fees are settled at the time of signing.
* '''Retroactive billing:''' All overdue subscription fees are collected retroactively at the time of the next contract signing — billed ''in addition to'' the transaction commission, never deducted from it.
* '''Double commission structure:''' The transaction commission is a double commission — one part for the User Group operating the service, one for the WikiDeal platform. Total must be between 5% and 15% (justified exceptions possible). Subscription fees come on top.

WikiDeal's financial model is built on a simple principle: '''subscribers fund the infrastructure that makes fair agreements possible.'''

Every subscription payment is distributed across four beneficiaries, each with a distinct role in sustaining the ecosystem. This page explains how that distribution works and why it matters.

== The Four-Lot Distribution Model ==
When you pay CHF 10 per year (or CHF 1 per month plus 5% annual increase), your subscription is divided into four equal parts:

Early Supporters
25%

Foundation
25%

Association
25%

Operations
25%

{| class="wikitable"
|-
! Lot
! Beneficiary
! Percentage
! Purpose
! Control
|-
| '''Lot 1'''
| Early Supporters & Founders
| 25%
| Recognition of those who supported WikiDeal's development from the beginning (the initial CHF 50M contribution)
| Private (Théo Bondolfi)
|-
| '''Lot 2'''
| Ynternet.org Foundation
| 25%
| Core infrastructure: governance, voting systems, annual events, coordination
| Foundation
|-
| '''Lot 3'''
| Association, Special Projects & Reserves
| 25%
| Community impact, special initiatives, financial resilience
| Democratically governed
|-
| '''Lot 4'''
| Platform Operations
| 25%
| Technology, infrastructure maintenance, operational costs
| Operational
|}

== Progressive Democratization ==
Today, only Lot 3 is fully governed democratically. As WikiDeal grows, the other lots progressively become subject to democratic oversight. This reflects our belief that commons governance emerges from participation and scale.

'''Timeline:'''

* '''Years 1-3:''' Lot 3 is democratic; Lots 1, 2, 4 follow established rules
* '''Years 3-5:''' Lot 2 (Foundation) begins democratization of certain decisions
* '''Years 5+:''' All lots move toward community governance as early supporters' role diminishes

== Why This Matters: The Citizenship Model ==
WikiDeal's subscription model is based on a principle we call the '''Citizenship Tax''':

'''Those who engage contribute less.''' Those who participate in governance, voting, and community building pay the standard rate (CHF 10/year).

'''Those who don't engage pay more.''' If you benefit from the system but don't contribute to its governance, you pay a higher rate to compensate for the civic infrastructure others are maintaining.

This creates positive incentives: the more you participate, the more affordable your subscription becomes. The system is self-balancing.

== Funding Through Solidarity ==
Not everyone can afford a subscription. WikiDeal's model includes multiple paths to access:

* '''Third-party sponsorship:''' Organizations and individuals can pay for subscriptions on behalf of others (e.g., CHF 30/year to sponsor a single parent who pays nothing)
* '''Fee waivers:''' Users can request free commission on their transactions if they demonstrate need
* '''Cross-group support:''' Within User Groups or marketplaces, members can support each other
* '''Sliding scale:''' Based on income, engagement, and community contribution

This creates a system of mutual aid where those with means voluntarily subsidize those without, because the subscription cost (CHF 10-100/year) is negligible for many but meaningful for others.

== Annual Value Growth (up to 5% per year — proposed, open question) ==
To protect early adopters and ensure sustainability, it is proposed that subscriptions could increase by up to 5% annually (5% being a maximum-cap hypothesis, not a guaranteed rate). Whether and at what rate this applies is an open question to be decided during Prototype 1:

{| class="wikitable"
|-
! Year
! Annual Subscription
! Monthly Equivalent
|-
| Year 1
| CHF 10.00
| CHF 0.83
|-
| Year 2
| CHF 10.50
| CHF 0.88
|-
| Year 3
| CHF 11.03
| CHF 0.92
|-
| Year 5
| CHF 12.76
| CHF 1.06
|-
| Year 10
| CHF 16.29
| CHF 1.36
|}

This modest growth ensures that subscription revenue keeps pace with operational costs without creating affordability barriers.

== The Path to Break-Even: CHF 500M in Subscriptions ==
To fully repay the initial CHF 100M contribution (via the 25% allocated to Lot 1), WikiDeal needs to generate CHF 400M in cumulative subscription revenue (25% of CHF 500M paid subscriptions × CHF 10/user/year).

Under conservative user growth assumptions, this happens in '''approximately 5 years''' (see the growth simulator below).

=== Growth Scenarios ===
See the interactive simulator on the [[Gov/en/Portal:Transparency/Growth-Scenarios|Growth Scenarios]] page to explore how different adoption rates affect the timeline to sustainability.

[[Category:Migration June 2026]]