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

Revision as of 08:16, 11 August 2026

💡 In simple words: Rewards are conditional rights to receive a share of future user subscription money. They give back to people who fund or build the platform early, turning their help into cash over time, but only if and when users actually subscribe.

🎯 In 20 seconds (scientific summary): Rewards are proposed as conditional rights, automatically converted into Swiss francs at the pace of user subscriptions and redistributed proportionally. They can come from a donation (via the bonding curve) or from work. Cash-out occurs in tranches and depends on adoption; reaching the optimal threshold could take years or never happen. No guarantee.

Rewards at a Glance

Definition	Conditional right to a share of future subscription revenue
Nominal Unit	1 Reward = 1 CHF (when cashed out)
Allocation	Via the Bonding Curve (for donations) or Open Calls (for work)
Cash-out trigger	Paid in tranches of CHF 100, funded by subscription revenue
Long-term target	5% annual value increase (study replacing the multiplier)
Revenue Split	25/25/50 rule (Donors / Early supporters / Operations)
Guarantee	None (depends entirely on user adoption)

Rewards are automatically converted into cash in Swiss francs. They should not be confused with Karma tokens (the exchange unit for services), a separate internal unit covered on its own page. 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.

Automatically converted 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: two types

Rewards are defined along two axes: their origin and their allocation.

Two origins:

Donation: Rewards granted in recognition of a donation to WikiDeal. This covers donors as well as early supporters who contributed in the years preceding the launch.
Validated work: Rewards granted for contributions validated through the Open Calls process, or for expert work invited by the initial Steering Committee.

Two allocations: each Reward is split between a personal share kept by the recipient and a community share allocated to the ecosystem, according to the Need-Driven Funding mechanism.

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. Based on Wikipedia's success, we estimate it will take 1 to 2 years for the model to work. Assuming strong resistance or low initial community involvement, it could take up to 10 years, or it might never work at all. Therefore, the estimated average is 3 to 4 years. Once the platform reaches approximately 5 million users, the process is essentially resolved within a maximum of 3 to 4 years.

⚠️ This figure is purely theoretical. There is no guarantee whatsoever. A faster uptake shortens the horizon; slow adoption lengthens it.

How Rewards Work: The Mechanisms

How Rewards Work

1. You make a donation (or perform validated work). 2. You receive a Reward allocation.

The amount you receive is processed through the Bonding Curve, a mathematical formula that determines how many Rewards you receive per CHF contributed. Early funders get more Rewards per CHF to reward their early commitment. Everything moves based on real expenses: no speculation, no invented values.

Need-Driven Funding

The Need-Driven Funding mechanism regulates the availability of Rewards. We strictly use the Need-Driven concept.

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.

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. Rewards are only distributed when real revenue exists. WikiDeal operates under Swiss FINMA sandbox rules.

@@ Line 1: / Line 1: @@
-{{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.}}
+{{KidsIntro|Rewards are conditional rights to receive a share of future user subscription money. They give back to people who fund or build the platform early, turning their help into cash over time, but only if and when users actually subscribe.}}
+{{ExpertIntro|Rewards are proposed as conditional rights, automatically converted into Swiss francs at the pace of user subscriptions and redistributed proportionally. They can come from a donation (via the bonding curve) or from work. Cash-out occurs in tranches and depends on adoption; reaching the optimal threshold could take years or never happen. No guarantee.}}
-Wiki Core · Concept
+__TOC__
-== Cash Rewards ==
-Cash Rewards at a Glance
+== Rewards at a Glance ==
 {| class="wikitable"
 |-
-| Symbol
+| '''Definition'''
-| 💰
+| Conditional right to a share of future subscription revenue
-|-
-| Currency
-| CHF (conditional)
-|-
-| Guarantee
-| None*
 |-
-| Annual increase
+| '''Nominal Unit'''
-| Up to +5%/year (proposed max — open question)
+| 1 Reward = 1 CHF (when cashed out)
 |-
-| Tax event
+| '''Allocation'''
-| At cash-out only
+| Via the [[Gov/en/Portal:R&D/Innovations:Bonding Curve|Bonding Curve]] (for donations) or Open Calls (for work)
 |-
-| Priority
+| '''Cash-out trigger'''
-| P2 (personal)
+| Paid in tranches of CHF 100, funded by [[Gov/en/Portal:Economy/Subscriptions|subscription revenue]]
 |-
-| See also
+| '''Long-term target'''
-| [[Gov/en/Portal:Economy/Cash-Rewards|Rewards Explained]]
+| [[Gov/en/Portal:R&D/Innovations:Annual Value Increase|5% annual value increase]] (study replacing the multiplier)
 |-
-| See also
+| '''Revenue Split'''
-| [[Gov/en/Portal:R&D/Innovations:Bonding Curve|Bonding Curve]]
+| [[Gov/en/Portal:Economy/Revenue-Structure|25/25/50 rule]] (Donors / Early supporters / Operations)
 |-
-| See also
+| '''Guarantee'''
-| Funding Contract
+| None (depends entirely on user adoption)
 |}
-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.
+Rewards are '''automatically converted into cash''' in Swiss francs. They should not be confused with '''[[Gov/en/Portal:Economy/Karma-Tokens|Karma tokens]]''' (the exchange unit for services), a separate internal unit covered on its own page. This page covers Rewards only.
-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? ===
+== 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.
-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.
+* Automatically converted 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.
-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.
+=== Who Receives Rewards: two types ===
+Rewards are defined along two axes: their origin and their allocation.
-=== How Cash Rewards Work ===
+'''Two origins:'''
+# '''Donation''': Rewards granted in recognition of a donation to WikiDeal. This covers donors as well as early supporters who contributed in the years preceding the launch.
+# '''Validated work''': Rewards granted for contributions validated through the [[Gov/en/Portal:R&D/Open-Calls:Main|Open Calls]] process, or for expert work invited by the initial [[Gov/en/Portal:Institutions/Steering-Committee|Steering Committee]].
-# '''Funding contribution''' — You contribute CHF via the funding flow.
+'''Two allocations:''' each Reward is split between a '''personal share''' kept by the recipient and a '''community share''' allocated to the ecosystem, according to the [[Gov/en/Portal:Economy/Need-Driven-Funding|Need-Driven Funding]] mechanism.
-# '''[[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 Cash 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.
-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.
+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 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.
+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-Calls:Subscription-Redistribution|subscription redistribution to Rewards]].
-=== Two blocks of Cash Rewards (Prototype 1) ===
+=== 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.
-Within the Prototype 1 framework, Cash Rewards are split into '''two distinct blocks''':
+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.
-* '''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.
 === How long to cash out? (estimated, no guarantee) ===
+The time needed to cash out Rewards depends entirely on how much the platform is used. Based on Wikipedia's success, we estimate it will take 1 to 2 years for the model to work. Assuming strong resistance or low initial community involvement, it could take up to 10 years, or it might never work at all. Therefore, the estimated average is '''3 to 4 years'''. Once the platform reaches approximately '''5 million users''', the process is essentially resolved within a maximum of 3 to 4 years.
-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.''' A faster uptake shortens the horizon; slow adoption lengthens it.
-'''⚠️ 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.
-=== Tax Implications ===
-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).
-Consult your tax advisor for your specific situation. WikiDeal does not provide tax advice.
-=== Annual Value Increase (proposed, open question) ===
-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.
-''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.
+== How Rewards Work: The Mechanisms ==
-=== Needs Addressed ===
+=== How Rewards Work ===
+. '''You make a donation''' (or perform validated work).
+. '''You receive a Reward allocation'''.
-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 amount you receive is processed through the [[Gov/en/Portal:R&D/Innovations:Bonding Curve|Bonding Curve]], a mathematical formula that determines how many Rewards you receive per CHF contributed. Early funders get more Rewards per CHF to reward their early commitment. Everything moves based on '''real expenses''': no speculation, no invented values.
-=== No Guarantee — An Honest Design ===
+=== Need-Driven Funding ===
+The [[Gov/en/Portal:R&D/Innovations:Need-Driven Funding|Need-Driven Funding]] mechanism regulates the availability of Rewards. We strictly use the Need-Driven concept.
-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.
+=== 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.
-* 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. Rewards are only distributed when real revenue exists. WikiDeal operates under Swiss FINMA sandbox rules.
-'''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
+''→ See also: [[Gov/en/Portal:Economy/Karma-Tokens|Karma tokens]] | [[Gov/en/Portal:Economy/Karma-Token-Market|Karma Token Market]] | [[Market:Programs|Programs]] | 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]]
-<!-- visible -->
+[[Category:Economy]]
+[[Category:WikiDeal Rewards]]