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

Latest revision as of 15:18, 25 July 2026

💡 In simple words: 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.

🎯 In 20 seconds (scientific summary): Rewards are conditional claims that are converted into Swiss francs at the pace of the subscriptions taken by users (a subscription, CHF 10 per year, is required to transact on any marketplace). Subscription revenue is redistributed proportionally to Reward holders. Rewards can be obtained in two ways: through a donation (the amount is set by the combination of the bonding curve and the need-driven stabilizer) or through an attribution by the Ynternet.org Foundation (open calls, mandates, founder attributions). Cash-out occurs in tranches of CHF 100, and cash-out speed depends on the number of subscribed users. There is no guarantee that there will be many users.

Rewards at a Glance

Symbol	💰
Currency	CHF (conditional)
Cash-out	By tranches of CHF 100, at the pace of user subscriptions (no guarantee)
Recipients	Donors, early supporters, pioneers
Basis	Bonding Curve (real expenses)
Tax event	At cash-out only
Priority	P2 (personal)
See also	Karma tokens (the exchange currency for services)

WikiDeal generates two clearly separate concepts of Credits: Rewards (which can be cashed out) and Karma tokens (the exchange currency for services). This page covers Rewards only.

What Rewards Are (no guarantee*)

Rewards are converted into Swiss francs at the pace of the subscriptions taken by users. They represent a conditional claim on future subscription revenue, not a debt or financial instrument: there is no guarantee on timing or completion, and their availability depends entirely on the number of subscribed users.

Convertible to CHF by tranches of CHF 100 when funds allow.
A possible annual percentage increase is under study (draft Open Call, not decided).
Held in your personal account (Priority 2).
Tax applies at cash-out.
No financial return is guaranteed. See Terms & Conditions and FINMA sandbox rules.

Who Receives Rewards

Rewards are intended for three categories of contributors:

Donors: people who support WikiDeal through Donations.
Early supporters: people who contributed to the project in the years preceding the launch of WikiDeal.
Pioneers: people who bring added value to the project and receive Rewards either through the Open Call process, or as experts invited by the initial Steering Committee.

Where the money comes from: subscription revenue

As a reminder, a subscription is required for anyone who wishes to make a transaction using any of the marketplaces, at the very low price of CHF 10 per year. The money that people pay for their subscriptions is intended to cover the Rewards: it is redistributed to Reward holders proportionally.

Concretely: when a person buys a CHF 10 yearly subscription to use WikiDeal, this person obtains the right to vote, and the CHF 10 feed the redistribution to Reward holders. The cash-out is funded by subscriptions, and subscriptions are not invasive: the platform can be used without paying, a subscription is only required to sign a contract in a marketplace.

One point remains open and still has to be defined: whether 100% of each subscription is redistributed to Reward holders, or only a part of it. What is already set: for the first tranche of CHF 200,000 donated for Prototype 1, subscription revenue is entirely (100%) attributed to Rewards. If this allocation is modified later, at least 50% of subscription revenue on average would remain attributed to Reward holders (contractual commitment). This is explored in the open call: subscription redistribution to Rewards.

Cash-out mechanism (tranches of CHF 100)

Cash-out occurs in tranches of CHF 100. As subscription revenue accumulates in the redistribution pool, it is allocated to Reward holders based on the proportion of Rewards they hold. When a holder's allocated share reaches CHF 100, that tranche becomes available for cash-out.

The system is sized so that Rewards are fully honoured once the platform has reached CHF 100 million in cumulative collections. With roughly 1 million active users, reaching this could take on the order of 10 years.

How long to cash out? (estimated, no guarantee)

The time needed to cash out 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. A faster uptake shortens the horizon; slow adoption lengthens it.

How Rewards Work: The Mechanisms

Two ways to obtain Rewards, three reward funds

Through a donation: the amount is defined by the combination of the bonding curve and the need-driven stabilizer.
Through an attribution: by the Ynternet.org Foundation (open calls, mandates).

Three reward funds correspond to these:

Rewards obtained through donations
Rewards attributed by the steering committee (open calls/mandates)
Rewards attributed by the founder

Two blocks of Rewards (Prototype 1)

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

Early supporters: 50 million Rewards
Funders / donors: 50 million Rewards

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

The Mathematical Relationship: Bonding Curve

When you fund WikiDeal, your contribution passes through the Bonding Curve, a mathematical formula that determines how many Credits you receive per CHF contributed:

Available Credits = Bonding Curve - Gifts

Bonding Curve = f(CHF contributed, position in curve)
Gifts = f(Karma token pressure + Karma tokens in common pot not consumed)
Early funders get more Credits per CHF (bonding curve rewards early commitment).
Everything moves based on real expenses: no speculation, no invented values.

The Need-Driven Funding Mechanism

The Need-Driven Funding mechanism regulates when Rewards become available:

Phase 1, services first: when the platform is growing, the community service economy (based on Karma tokens) develops first.
Phase 2, cash follows: as the service economy grows, subscription revenue grows, and Rewards (no guarantee*) become available so that funders can convert to CHF.

Need-Driven Funding ratio = f(Active funders / Platform funding needs)

Early stage: 70% Rewards / 30% Gift
Growth stage: 40% Rewards / 60% Gift (more community benefit)

Gift: a Separate, Voluntary Concept

A Gift is a voluntary Donation from a funder or participant to the WikiDeal community pool. It is NOT a type of Credit. The amount of Gifts available depends on the pressure degree:

Less pressure from funders = more Gifts by default.
More pressure for personal Rewards = fewer Gifts (deducted from the bonding curve).

Gift funds are dedicated to community-benefit purposes (subsidized memberships, grants). It is an optional, voluntary layer.

Transparency and Replicability

Replicable Model: Every User Group can launch its own funding campaign using the exact same methodology (bonding curve, Rewards, Gift mechanism) as WikiDeal Core. The Babysitting User Group or Street Fundraising User Group can attract funders specifically for their infrastructure.
Tax Implications: Rewards are not taxable when earned. Tax implications arise only at the moment of cash-out.
Honest Accounting: All Commissions are charged at cost. Credits are only distributed when real revenue exists. WikiDeal operates under Swiss FINMA sandbox rules.

@@ Line 1: / Line 1: @@
 {{KidsIntro|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.}}
+{{ExpertIntro|Rewards are conditional claims that are converted into Swiss francs at the pace of the subscriptions taken by users (a subscription, CHF 10 per year, is required to transact on any marketplace). Subscription revenue is redistributed proportionally to Reward holders. Rewards can be obtained in two ways: through a donation (the amount is set by the combination of the bonding curve and the need-driven stabilizer) or through an attribution by the Ynternet.org Foundation (open calls, mandates, founder attributions). Cash-out occurs in tranches of CHF 100, and cash-out speed depends on the number of subscribed users. There is no guarantee that there will be many users.}}
+__TOC__
-Wiki Core · Concept
+== Rewards at a Glance ==
-== Rewards ==
-Rewards at a Glance
 {| class="wikitable"
 |-
@@ Line 15: / Line 12: @@
 | CHF (conditional)
 |-
-| Guarantee
+| Cash-out
-| None*
+| By tranches of CHF 100, at the pace of user subscriptions (no guarantee)
+|-
+| Recipients
+| Donors, early supporters, pioneers
 |-
-| Annual increase
+| Basis
-| Up to +5%/year (proposed max — open question)
+| [[Gov/en/Portal:R&D/Innovations:Bonding Curve|Bonding Curve]] (real expenses)
 |-
 | Tax event
@@ Line 28: / Line 28: @@
 |-
 | See also
-| [[Gov/en/Portal:Economy/Rewards|Rewards Explained]]
+| [[Gov/en/Portal:Economy/Karma-Tokens|Karma tokens]] (the exchange currency for services)
-|-
-| See also
-| [[Gov/en/Portal:R&D/Innovations:Bonding Curve|Bonding Curve]]
-|-
-| See also
-| Funding Contract
 |}
-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.
+WikiDeal generates two clearly separate concepts of Credits: '''Rewards''' (which can be cashed out) and '''[[Gov/en/Portal:Economy/Karma-Tokens|Karma tokens]]''' (the exchange currency for services). This page covers Rewards only.
-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 Reward holders, proportionally.
+== What Rewards Are (no guarantee*) ==
+Rewards are converted into Swiss francs at the pace of the subscriptions taken by users. They represent a conditional claim on future subscription revenue, not a debt or financial instrument: there is no guarantee on timing or completion, and their availability depends entirely on the number of subscribed users.
-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 Reward holders, each one receiving a share of these CHF 10 in proportion to the Rewards they hold.
+* Convertible to CHF by tranches of CHF 100 when funds allow.
+* A possible annual percentage increase is under study (draft [[Gov/en/Portal:R&D/Innovations:Annual Value Increase|Open Call]], not decided).
+* Held in your personal account (Priority 2).
+* Tax applies at cash-out.
+* No financial return is guaranteed. See Terms & Conditions and FINMA sandbox rules.
-=== What Are Rewards? ===
+=== Who Receives Rewards ===
+Rewards are intended for three categories of contributors:
-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 Rewards in your personal account.
+# '''Donors''': people who support WikiDeal through Donations.
+# '''Early supporters''': people who contributed to the project in the years preceding the launch of WikiDeal.
-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.
+# '''Pioneers''': people who bring added value to the project and receive Rewards either through the [[Gov/en/Portal:R&D/Open-Call:Main|Open Call]] process, or as experts invited by the initial [[Gov/en/Portal:Institutions/Steering-Committee|Steering Committee]].
-=== How Rewards Work ===
-# '''Funding contribution''' — You contribute CHF via the funding flow.
-# '''[[Gov/en/Portal:R&D/Innovations:Bonding Curve|Bonding curve]] processing''' — The algorithm converts your CHF into Credits based on the current reserve level. Early funders receive more Credits per CHF (e.g. ×100 multiplier at very low reserve).
-# '''Credit allocation''' — Your Credits are split by the [[Gov/en/Portal:R&D/Innovations:Funding Stabilizer|Balance Boost]] mechanism into Rewards (P2) and community pool contributions.
-# '''Value appreciation (proposed)''' — Credits may gain up to 5%/year in CHF value. This is a proposal under study, not a guaranteed or automatic return.
-# '''Cash-out''' — When platform conditions allow (sufficient subscription revenue), you can request conversion to CHF via [https://funding.wikideal.net funding.wikideal.net].
 === Where the money comes from: subscription revenue ===
+As a reminder, a [[Gov/en/Portal:Economy/Subscriptions|subscription]] is required for anyone who wishes to make a transaction using any of the marketplaces, at the very low price of CHF 10 per year. The money that people pay for their subscriptions is intended to cover the Rewards: it is redistributed to Reward holders proportionally.
-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 Rewards. As these holders are progressively paid out, their number decreases over time.
+Concretely: when a person buys a CHF 10 yearly subscription to use WikiDeal, this person obtains the right to vote, and the CHF 10 feed the redistribution to Reward holders. The cash-out is funded by subscriptions, and subscriptions are not invasive: the platform can be used without paying, a subscription is only required to sign a contract in a marketplace.
-The system is sized so that 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.
+One point remains open and still has to be defined: whether 100% of each subscription is redistributed to Reward holders, or only a part of it. What is already set: for the '''first tranche of CHF 200,000''' donated for Prototype 1, subscription revenue is '''entirely (100%) attributed to Rewards'''. If this allocation is modified later, at least 50% of subscription revenue on average would remain attributed to Reward holders (contractual commitment). This is explored in the open call: [[Gov/en/Portal:R&D/Open-Call:Subscription-Redistribution|subscription redistribution to Rewards]].
-=== Two blocks of Rewards (Prototype 1) ===
-Within the Prototype 1 framework, Rewards are split into '''two distinct blocks''':
-* '''Early supporters''' — '''50 million''' Rewards
+=== Cash-out mechanism (tranches of CHF 100) ===
-* '''Funders / donors (funding contributions)''' — '''50 million''' Rewards
+Cash-out occurs in '''tranches of CHF 100'''. As subscription revenue accumulates in the redistribution pool, it is allocated to Reward holders based on the proportion of Rewards they hold. When a holder's allocated share reaches CHF 100, that tranche becomes available for cash-out.
-That is '''100 million Rewards in total''', drawn down from subscription revenue as it accrues.
+The system is sized so that Rewards are fully honoured once the platform has reached CHF 100 million in cumulative collections. With roughly 1 million active users, reaching this could take on the order of 10 years.
 === How long to cash out? (estimated, no guarantee) ===
 The time needed to cash out 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 Rewards are simply not distributed in a given period.
+'''⚠️ This figure is purely theoretical. There is no guarantee whatsoever.''' It is an estimated projection. A faster uptake shortens the horizon; slow adoption lengthens it.
-=== Tax Implications ===
+== How Rewards Work: The Mechanisms ==
-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).
+=== Two ways to obtain Rewards, three reward funds ===
+# '''Through a donation''': the amount is defined by the combination of the [[Gov/en/Portal:R&D/Innovations:Bonding Curve|bonding curve]] and the [[Gov/en/Portal:R&D/Innovations:Need-Driven Funding|need-driven stabilizer]].
+# '''Through an attribution''': by the Ynternet.org Foundation (open calls, mandates).
-Consult your tax advisor for your specific situation. WikiDeal does not provide tax advice.
+Three reward funds correspond to these:
+* Rewards obtained through donations
+* Rewards attributed by the steering committee (open calls/mandates)
+* Rewards attributed by the founder
-=== Annual Value Increase (proposed, open question) ===
+=== Two blocks of Rewards (Prototype 1) ===
+Within the Prototype 1 framework, Rewards are split into '''two distinct blocks''':
+* '''Early supporters:''' 50 million Rewards
+* '''Funders / donors:''' 50 million Rewards
+That is '''100 million Rewards in total''', drawn down from subscription revenue as it accrues.
-It is proposed that Cash Credits could increase in CHF value by '''up to 5% per year''' — with 5% as a maximum-cap hypothesis, not a guaranteed rate. Whether this is implemented, and the exact rate (''x%''), remains an open economic question to be decided during Prototype 1. It would not be a market return or speculation, but a defined, transparent formula — if adopted.
+=== The Mathematical Relationship: Bonding Curve ===
+When you fund WikiDeal, your contribution passes through the '''Bonding Curve''', a mathematical formula that determines how many Credits you receive per CHF contributed:
-''Illustration only, assuming the 5% maximum-cap hypothesis were adopted:'' CHF value at year N = face_value × (1.05)^N → e.g. CHF 1.00 at year 0 becomes about CHF 1.05 (year 1), CHF 1.28 (year 5), CHF 1.63 (year 10). The real rate could be lower (''x%'') or the mechanism may not be implemented at all — no guarantee.
+Available Credits = Bonding Curve - Gifts
-=== Needs Addressed ===
+* '''Bonding Curve''' = f(CHF contributed, position in curve)
+* '''Gifts''' = f(Karma token pressure + Karma tokens in common pot not consumed)
+* Early funders get more Credits per CHF (bonding curve rewards early commitment).
+* Everything moves based on '''real expenses''': no speculation, no invented values.
-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. Rewards provide a conditional path to financial return without creating speculative pressure or securities-law complexity.
+=== The Need-Driven Funding Mechanism ===
+The [[Gov/en/Portal:R&D/Innovations:Need-Driven Funding|Need-Driven Funding mechanism]] regulates when Rewards become available:
+# '''Phase 1, services first:''' when the platform is growing, the community service economy (based on [[Gov/en/Portal:Economy/Karma-Tokens|Karma tokens]]) develops first.
+# '''Phase 2, cash follows:''' as the service economy grows, subscription revenue grows, and Rewards (no guarantee*) become available so that funders can convert to CHF.
-=== No Guarantee — An Honest Design ===
+Need-Driven Funding ratio = f(Active funders / Platform funding needs)
+* Early stage: 70% Rewards / 30% Gift
+* Growth stage: 40% Rewards / 60% Gift (more community benefit)
-The absence of guarantee is not a weakness — it is the honest architecture. WikiDeal does not promise what it cannot deliver. Rewards will be distributed when and only when subscription revenue allows. This aligns funder interests with platform growth, not with speculation.
+== Gift: a Separate, Voluntary Concept ==
+A '''Gift''' is a voluntary Donation from a funder or participant to the WikiDeal community pool. It is NOT a type of Credit. The amount of Gifts available depends on the '''pressure degree''':
+* Less pressure from funders = more Gifts by default.
+* More pressure for personal Rewards = fewer Gifts (deducted from the bonding curve).
+Gift funds are dedicated to community-benefit purposes (subsidized memberships, grants). It is an optional, voluntary layer.
-* No financial return is guaranteed. See Terms &amp; Conditions and FAQ for full details. FINMA sandbox rules apply.
+== Transparency and Replicability ==
+* '''Replicable Model''': Every User Group can launch its own funding campaign using the exact same methodology (bonding curve, Rewards, Gift mechanism) as WikiDeal Core. The Babysitting User Group or Street Fundraising User Group can attract funders specifically for their infrastructure.
+* '''Tax Implications''': Rewards are not taxable when earned. Tax implications arise only at the moment of cash-out.
+* '''Honest Accounting''': All Commissions are charged at cost. Credits are only distributed when real revenue exists. WikiDeal operates under Swiss FINMA sandbox rules.
-'''See also:''' [[Gov/en/Portal:Economy/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
+''→ See also: [[Gov/en/Portal:Economy/Karma-Tokens|Karma tokens]] | [[Gov/en/Portal:Economy/Karma-Token-Market|Karma Token Market]] | [[Gov/en/Portal:R&D/Programmes|12 Programmes]] | Terms & Conditions | FAQ | [[Gov/en/Portal:Onboarding/Glossary|Glossary]]''
-💡 '''Improve this concept''' — submit a proposal via [[Gov/en/Portal:R&D/Open-Call:Main|Open Call]]
 [[Category:Migration June 2026]]
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