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

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| Annual increase

| +5% (~~transparent algorithm~~)

| Up to +5%/year (proposed max — open question)

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| Tax event

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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 gain a '''5% ~~annual value increase~~''' ~~via a transparent~~, ~~defined algorithm~~. They can be cashed out when the conditions are met — specifically, when sufficient subscription revenue has been generated by active WikiDeal users.

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 ===

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# '''[[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''' — Credits gain 5%/year in CHF value ~~automatically~~.

# '''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 ===

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.

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

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.

=== Tax Implications ===

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Consult your tax advisor for your specific situation. WikiDeal does not provide tax advice.

=== ~~The 5%~~ Annual Value Increase ===

=== Annual Value Increase (proposed, open question) ===

~~Every~~ Cash ~~Credit increases~~ in CHF value by 5% per year, ~~calculated by~~ a ~~transparent algorithm~~. ~~This~~ is not a market return or speculation ~~— it is~~ a defined formula ~~applied uniformly to all Credits regardless of market conditions~~.

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.

CHF value at year N = face_value × (1.05)^N ~~Example:~~ CHF 1.00 ~~Credit~~ at year 0 ~~→ Year 1:~~ CHF 1.05 ~~→ Year 5:~~ CHF 1.28 ~~→ Year 10:~~ CHF 1.63

''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.

=== Needs Addressed ===

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💡 '''Improve this concept''' — submit a proposal via [[Gov/en/Portal:R&D/Open-Call:Main|Open Call]]

[[Category:Migration June 2026]]

@@ Line 21: / Line 21: @@
 |-
 | Annual increase
-| +5% (transparent algorithm)
+| Up to +5%/year (proposed max — open question)
 |-
 | Tax event
@@ Line 47: / Line 47: @@
 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 gain a '''5% annual value increase''' via a transparent, defined algorithm. They can be cashed out when the conditions are met — specifically, when sufficient subscription revenue has been generated by active WikiDeal users.
+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 ===
@@ Line 54: / Line 54: @@
 # '''[[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''' — Credits gain 5%/year in CHF value automatically.
+# '''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 ===
+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.
+=== How long to cash out? (estimated, no guarantee) ===
+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.
 === Tax Implications ===
@@ Line 63: / Line 84: @@
 Consult your tax advisor for your specific situation. WikiDeal does not provide tax advice.
-=== The 5% Annual Value Increase ===
+=== Annual Value Increase (proposed, open question) ===
-Every Cash Credit increases in CHF value by 5% per year, calculated by a transparent algorithm. This is not a market return or speculation — it is a defined formula applied uniformly to all Credits regardless of market conditions.
+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.
-CHF value at year N = face_value × (1.05)^N Example: CHF 1.00 Credit at year 0 → Year 1: CHF 1.05 → Year 5: CHF 1.28 → Year 10: CHF 1.63
+''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.
 === Needs Addressed ===
@@ Line 83: / Line 104: @@
 💡 '''Improve this concept''' — submit a proposal via [[Gov/en/Portal:R&D/Open-Call:Main|Open Call]]
 [[Category:Migration June 2026]]
+<!-- visible -->