Gov/en/Portal:R&D/Innovations:Need-Driven Funding: Difference between revisions
Terminology: Need-Driven Funding replaces Funding Stabilizer / Boost mechanism (Theo 2026-07-07) |
Terminology pass 2: unify historical names (Balanced Boost, Balance Boost, The Boost) under Need-Driven Funding |
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{{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.}} | {{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.}} | ||
''Formerly known as Boost, Balanced Boost or Funding Stabilizer: those names are deprecated.'' | |||
Wiki Core · Concept | Wiki Core · Concept | ||
== | == Need-Driven Funding == | ||
Need-Driven Funding at a Glance | |||
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The | The Need-Driven Funding is a second algorithm — entirely separate from the [[Gov/en/Portal:R&D/Innovations:Bonding Curve|bonding curve]] — that regulates the ratio between [[Gov/en/Portal:Economy/Rewards|Rewards]] and community pool contributions based on the real needs of the platform. It is non-speculative, transparent, and designed to reflect actual funding dynamics rather than market forces. | ||
The | The Need-Driven Funding mechanism is not about maximizing returns — it is about aligning Credit distribution with what the platform actually needs at each stage of growth. | ||
=== How | === How Need-Driven Funding Works === | ||
The | The Need-Driven Funding mechanism continuously adjusts the split between: | ||
* '''Personal Credits ([[Gov/en/Portal:Economy/Rewards|Rewards]], P2)''' — held in individual accounts, potentially convertible to CHF | * '''Personal Credits ([[Gov/en/Portal:Economy/Rewards|Rewards]], P2)''' — held in individual accounts, potentially convertible to CHF | ||
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=== The Sequence: Miles First, Then Cash === | === The Sequence: Miles First, Then Cash === | ||
The | The Need-Driven Funding mechanism follows a defined sequence: | ||
# '''First: Miles Credits increase''' — In early stages, more Credits flow to the community pool (Miles Credits for services). The platform needs community engagement more than it needs to reward individual funders. | # '''First: Miles Credits increase''' — In early stages, more Credits flow to the community pool (Miles Credits for services). The platform needs community engagement more than it needs to reward individual funders. | ||
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=== No Fixed Cap — Continuous Curve === | === No Fixed Cap — Continuous Curve === | ||
Unlike static split models, the | Unlike static split models, the Need-Driven Funding mechanism uses a continuous curve. At no point is there a hard cap on Rewards or a fixed percentage. The curve is: | ||
* Linked to the funding/costs ratio (more funding relative to costs → more Rewards flow) | * Linked to the funding/costs ratio (more funding relative to costs → more Rewards flow) | ||
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=== Relationship to Other Mechanisms === | === Relationship to Other Mechanisms === | ||
The | The Need-Driven Funding mechanism is a companion to the bonding curve, not part of it: | ||
* '''Bonding curve''' → determines total Credits generated per CHF | * '''Bonding curve''' → determines total Credits generated per CHF | ||