Gov/en/Portal:Economy/Rewards

💡 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:

1. 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.
2. 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.

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