Gov/en/Portal:R&D/Innovations:Need-Driven Funding: Difference between revisions

{{KidsIntro|The Need-Driven Funding is a tool that keeps money flowing in a steady, fair way. It smooths out the ups and downs so the platform always has enough support to keep going, like a savings jar that balances good months and slow months.}}

{{ExpertIntro|Need-Driven Funding acts as a reward ratio regulation: a second algorithm, separate from the bonding curve, that adjusts rewards to the real needs of the platform. When needs are low, the corresponding share would feed a provision fund intended to be managed by the Ynternet.org Foundation; when needs are high, the reward would be higher. The funding starts at zero or in negative territory (founders invest before the call for funding), measured by the funding cost ratio. Non-speculative, donation-based, transparent.}}

| Reward ratio regulation

| Funding cost ratio (funding vs. real needs)

| [[Gov/en/Portal:Economy/Rewards|Rewards]] · [[Gov/en/Portal:Economy/Karma-Tokens|Karma tokens]]

Need-Driven Funding is a second algorithm, entirely separate from the [[Gov/en/Portal:R&D/Innovations:Bonding Curve|bonding curve]], that acts as a '''reward ratio regulation''': the "decider" of the reward. It regulates the ratio between [[Gov/en/Portal:Economy/Rewards|Rewards]] and community pool contributions based on the real needs of the platform. It is intended to be non-speculative, transparent, and designed to reflect actual funding dynamics rather than market forces.

* When needs are '''low''', the corresponding share would feed a '''provision fund''' intended to be managed by the Ynternet.org Foundation, for the future of WikiDeal.

* When needs are '''high''', the reward would be higher.

The mechanism is not about maximizing returns: it is about aligning Reward distribution with what the platform actually needs at each stage of growth.

Donors and potential donors would receive '''notices''' (suggesting a complementary donation, or informing their network) and would see a reward that theoretically decreases over time, though not necessarily continuously: the private reward for donors decreases while the share for R&D and provisioning grows with revenue.

* About CHF 100,000 invested before the call for funding, plus about CHF 12,000 per month of operating costs (salaries, servers, steering committee meetings).

* After 6 months: CHF 100,000 + 6 x 12,000 = '''CHF 172,000''' raised would bring the need percentage below 100 percent.

* After 12 months: '''CHF 244,000''' raised would mean the initial CHF 100,000 reimbursed and 12 months of costs covered.

* The variables are the monthly amount (here 12,000) and the number of months of security wanted (typically 3): CHF 100,000 + 15 x 12,000 = '''CHF 280,000'''.

* On a funding curve going from x100 down to x30: a first round of CHF 200,000 (out of a CHF 1,000,000 target) at x100, then a decrease. At CHF 280,000 raised, the CHF 80,000 above 200,000 would average about x85, and the difference between x85 and x30 would benefit the provision fund of the Ynternet.org Foundation.

The mechanism continuously adjusts the split between:

* '''Personal Rewards ([[Gov/en/Portal:Economy/Rewards|Rewards]], P2)''': held in individual accounts, potentially convertible to CHF.

* '''Community pool''': funding [[Gov/en/Portal:R&D/Innovations:User Groups|User Groups]], shared infrastructure, collective projects (including [[Gov/en/Portal:Economy/Karma-Tokens|Karma tokens]] for services).

The ratio changes based on the platform's funding cost ratio. This is a continuous curve: there is no fixed cap, no sudden thresholds, no arbitrary percentages. The intended sequence: in early stages, more Rewards flow to the community pool (the platform needs community engagement first); as the platform grows and subscription revenue rises, more Rewards flow to personal accounts, so funders who waited are progressively rewarded.

* Non-speculative: the ratio changes based on real needs, not market sentiment.

* Transparent: the formula is intended to be published, auditable, and subject to [[Gov/en/Portal:R&D/Open-Calls:Main|Open Call]] review.

* Community-first: community utility is built before personal returns are maximized.

* '''Need-Driven Funding''' → determines how those Rewards are split (personal vs. community).

* '''[[Gov/en/Portal:Economy/Subscriptions|Subscription model]]''' → provides the revenue that would make Rewards convertible.

'''See also:''' [[Gov/en/Portal:R&D/Innovations:Bonding Curve|Bonding Curve]] · [[Gov/en/Portal:Economy/Rewards|Rewards]] · [[Gov/en/Portal:Economy/Karma-Tokens|Karma tokens]] · [[Gov/en/Portal:Economy/Subscriptions|Subscription Model]] · [[Gov/en/Portal:R&D/Innovations:Main|All innovations]] · [[Gov/en/Portal:R&D/Open-Calls:Main|Open Calls]]