Gov/en/Portal:Economy/Rewards: Difference between revisions

{{KidsIntro|Cash rewards are real money you can earn on the platform for helping out or doing good work. When you contribute something useful, you can get paid back in cash.}}

== Cash Rewards ==

Cash Rewards at a Glance

| [[Gov/en/Portal:Economy/Cash-Rewards|Rewards Explained]]

Cash Rewards are a type of WikiDeal Reward that can be converted to CHF — but '''without guarantee'''. They represent a conditional claim on future subscription revenue, not a debt or financial instrument. Their availability depends entirely on the financial health of the platform.

Cash Rewards are honest: they are distributed at the rhythm of subscription income. If subscription income is low, rewards can be low. It is a transparent process: each subscription immediately and automatically generates a distribution to all Cash Reward holders, proportionally.

Concretely: when a person buys a CHF 10 yearly subscription to use WikiDeal and becomes a subscribed user, this person obtains the right to vote, and the CHF 10 are immediately redistributed to all Cash Reward holders, each one receiving a share of these CHF 10 in proportion to the Cash Rewards they hold.

=== What Are Cash Rewards? ===

When you fund WikiDeal through the Fund WikiDeal page, your contribution passes through the [[Gov/en/Portal:R&D/Innovations:Bonding Curve|bonding curve]] algorithm. Depending on your chosen reward type (Priority 2), you receive Cash Rewards in your personal account.

Cash Rewards accumulate over time and may gain an annual value increase. The rate is '''not decided''': a maximum cap of 5%/year is proposed, but whether it applies, and at what rate (''x%'', up to 5%), is an open question to be settled during Prototype 1. They can be cashed out when the conditions are met — specifically, when sufficient subscription revenue has been generated by active WikiDeal users.

=== How Cash Rewards Work ===

# '''Credit allocation''' — Your Credits are split by the [[Gov/en/Portal:R&D/Innovations:Funding Stabilizer|Balance Boost]] mechanism into Cash Rewards (P2) and community pool contributions.

Cash Rewards are '''funded directly from subscription revenue'''. At the start, the revenue collected from the CHF 1/month subscriptions is allocated to the holders of Cash Rewards. As these holders are progressively paid out, their number decreases over time.

The system is sized so that Cash Rewards are fully honoured once the platform has reached '''CHF 100 million in cumulative collections'''. As an order of magnitude: with roughly 1 million active users (≈ CHF 12/year each), reaching CHF 100 million in collections would take on the order of '''10 years'''. If adoption grows faster — for example reaching 3 million users within 3 years — that horizon shortens accordingly.

=== Two blocks of Cash Rewards (Prototype 1) ===

Within the Prototype 1 framework, Cash Rewards are split into '''two distinct blocks''':

* '''Early supporters''' — '''50 million''' Cash Rewards

* '''Funders / donors (funding contributions)''' — '''50 million''' Cash Rewards

That is '''100 million Cash Rewards in total''', drawn down from subscription revenue as it accrues.

The time needed to cash out Cash Rewards depends entirely on how much the platform is used. To be deliberately cautious, the cash-out horizon is described as ranging '''between 1 and 10 years''', with an '''estimated average of 3 to 4 years'''.

'''⚠️ This figure is purely theoretical. There is no guarantee whatsoever.''' It is an '''estimated projection''', not a promise. The actual timing will depend on the platform's attractiveness and adoption. A faster uptake (more users, more subscription revenue) shortens the horizon; slow adoption lengthens it — or, in the honest design, may mean Cash Rewards are simply not distributed in a given period.

Cash Rewards are '''not taxable when earned'''. Tax implications arise only at the moment of cash-out, when Credits are converted to CHF. This is consistent with Swiss tax law for utility credits and supports FINMA sandbox classification as a utility token (not a security).

Cash Rewards address the legitimate financial interests of early funders who take on the highest risk. When WikiDeal has few users, the platform is unproven — early funders deserve recognition for their trust. Cash Rewards provide a conditional path to financial return without creating speculative pressure or securities-law complexity.

The absence of guarantee is not a weakness — it is the honest architecture. WikiDeal does not promise what it cannot deliver. Cash Rewards will be distributed when and only when subscription revenue allows. This aligns funder interests with platform growth, not with speculation.

'''See also:''' [[Gov/en/Portal:Economy/Cash-Rewards|Rewards Explained]] [[Gov/en/Portal:Economy/Miles-Credits|Miles Credits]] [[Gov/en/Portal:R&D/Innovations:Bonding Curve|Bonding Curve]] [[Gov/en/Portal:R&D/Innovations:Funding Stabilizer|Balance Boost]] [[Gov/en/Portal:Economy/Subscriptions|Subscription Model]] Funding Contract FAQ