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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.}}
{{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.}}
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''Formerly known as Boost, Balanced Boost or Funding Stabilizer: those names are deprecated.''
= Need-Driven Funding =
 
''Innovation, WikiDeal R&D. Formerly known as Boost, Balanced Boost or Funding Stabilizer: those names are deprecated.''
Wiki Core · Concept
 
== Need-Driven Funding ==
 
Need-Driven Funding at a Glance


{| class="wikitable"
{| class="wikitable"
Line 18: Line 15:
|-
|-
| Purpose
| Purpose
| Cash/Miles ratio regulation
| Reward ratio regulation
|-
|-
| Cap
| Cap
| None — continuous curve
| None, continuous curve
|-
|-
| Driver
| Driver
| Funding/costs ratio
| Funding cost ratio (funding vs. real needs)
|-
|-
| Speculation
| Speculation
| ❌ None — at-cost
| ❌ None, at-cost, donation-based
|-
| See also
| [[Gov/en/Portal:Economy/Rewards|Rewards]]
|-
| See also
| [[Gov/en/Portal:Economy/Miles-Credits|Miles Credits]]
|-
|-
| See also
| See also
| Success Criteria
| [[Gov/en/Portal:Economy/Rewards|Rewards]] · [[Gov/en/Portal:Economy/Karma-Tokens|Karma tokens]]
|}
|}


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.
<span id="what-is-it"></span>
== What is it? ==
 
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.


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.
* 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.


=== How Need-Driven Funding Works ===
The mechanism is not about maximizing returns: it is about aligning Credit distribution with what the platform actually needs at each stage of growth.


The Need-Driven Funding mechanism continuously adjusts the split between:
<span id="negative-start"></span>
== Starting at zero or in negative territory ==


* '''Personal Credits ([[Gov/en/Portal:Economy/Rewards|Rewards]], P2)''' — held in individual accounts, potentially convertible to CHF
A key point: the funding starts at zero or in negative territory, because '''investments by the founders take place before the call for funding'''. This is what makes the beginning very attractive. The key variable is the '''funding cost ratio''': how much has already been spent when the first call is launched.
* '''Community pool''' — funding [[Gov/en/Portal:R&D/Innovations:User Groups|User Groups]], shared Infrastructure, collective projects (including [[Gov/en/Portal:Economy/Miles-Credits|Miles Credits]] for services)


The ratio changes based on the platform's funding/costs ratio. This is a continuous curve — there is no fixed cap, no sudden thresholds, no arbitrary percentages.
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.


=== The Sequence: Miles First, Then Cash ===
<span id="illustrative-example"></span>
== An illustrative example ==


The Need-Driven Funding mechanism follows a defined sequence:
The variables matter more than the figures: all figures below are placeholders, and contributions remain non-speculative donations.


# '''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.
* 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).
# '''Then: Rewards increase''' — As the platform grows and subscription revenue rises, more Credits flow to personal accounts (Rewards). Funders who waited are progressively rewarded.
* 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.


This sequence ensures the platform builds real utility first, then returns value to funders who made that utility possible.
<span id="how-it-works"></span>
== How it works ==


=== No Fixed Cap — Continuous Curve ===
The mechanism continuously adjusts the split between:


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:
* '''Personal Credits ([[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).


* Linked to the funding/costs ratio (more funding relative to costs → more Rewards flow)
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 Credits flow to the community pool (the platform needs community engagement first); as the platform grows and subscription revenue rises, more Credits flow to personal accounts, so funders who waited are progressively rewarded.
* Responsive to real operational data, not speculation
* Published and auditable — community members can verify the calculation


=== The Reconquest of Business Management by the People ===
<span id="principles"></span>
== Principles ==


The Need-Driven Funding mechanism embodies a core WikiDeal principle: ''the reconquest by the people of business management''. By making the Cash/Miles ratio transparent and need-driven, WikiDeal eliminates the usual &quot;platform takes as much as possible&quot; dynamic. The algorithm serves the community, not shareholders.
* 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-Call:Main|Open Call]] review.
* At-cost: no extraction beyond what the platform needs to operate.
* Community-first: community utility is built before personal returns are maximized.


* Non-speculative: ratio changes based on real needs, not market sentiment
<span id="relationships"></span>
* Transparent: formula published, auditable, subject to [[Gov/en/Portal:R&D/Open-Call:Main|Open Call]] review
== Relationship to other mechanisms ==
* At-cost: no extraction beyond what the platform needs to operate
* Community-first: Miles Credits flow first, ensuring community utility is built before personal returns are maximized


=== Relationship to Other Mechanisms ===
Need-Driven Funding is a companion to the bonding curve, not part of it:


The Need-Driven Funding mechanism is a companion to the bonding curve, not part of it:
* '''[[Gov/en/Portal:R&D/Innovations:Bonding Curve|Bonding curve]]''' → determines total Credits generated per CHF.
* '''Need-Driven Funding''' → determines how those Credits are split (Rewards vs. community).
* '''[[Gov/en/Portal:Economy/Subscriptions|Subscription model]]''' → provides the revenue that would make Rewards convertible.


* '''Bonding curve''' → determines total Credits generated per CHF
The combination of the bonding curve and Need-Driven Funding creates a self-regulation that makes [[Gov/en/Portal:R&D/Innovations:Exit To Community|Exit to Community]] much less speculative: based only on real flows and real needs.
* '''Need-Driven Funding mechanism''' → determines how those Credits are split (Cash vs. community)
* '''[[Gov/en/Portal:Economy/Subscriptions|Subscription model]]''' → provides the revenue that makes Rewards convertible


'''See also:''' [[Gov/en/Portal:R&D/Innovations:Bonding Curve|Bonding Curve]] [[Gov/en/Portal:Economy/Rewards|Rewards]] [[Gov/en/Portal:Economy/Miles-Credits|Miles Credits]] [[Gov/en/Portal:Economy/Subscriptions|Subscription Model]] Success Criteria [[Gov/en/Portal:R&D/Open-Call:Main|Open Call Guide]]
----
'''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-Call:Main|Open Calls]]


💡 '''Improve this concept''' — submit a proposal via [[Gov/en/Portal:R&D/Open-Call:Main|Open Call]]
[[Category:Migration June 2026]]
[[Category:Migration June 2026]]
[[Category:Innovation]]
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