Gov/en/Portal:Economy/Rewards

💡 In simple words: Rewards are real money you can earn on the platform for helping out or doing good work. When you contribute something useful, you can get paid back in cash.

Wiki Core · Concept

Rewards

Rewards at a Glance

Symbol	💰
Currency	CHF (conditional)
Guarantee	None*
Annual increase	Under study (draft Open Call)
Tax event	At cash-out only
Priority	P2 (personal)
See also	Rewards Explained
See also	Bonding Curve
See also	Funding Contract

Rewards are a type of WikiDeal Reward that can be converted to CHF — but without guarantee. They represent a conditional claim on future subscription revenue, not a debt or financial instrument. Their availability depends entirely on the financial health of the platform.

Rewards are honest: they are distributed at the rhythm of subscription income. If subscription income is low, rewards can be low. It is a transparent process: each subscription immediately and automatically generates a distribution to all Reward holders, proportionally.

Concretely: when a person buys a CHF 10 yearly subscription to use WikiDeal and becomes a subscribed user, this person obtains the right to vote, and the CHF 10 are immediately redistributed to all Reward holders, each one receiving a share of these CHF 10 in proportion to the Rewards they hold.

What Are Rewards?

When you fund WikiDeal through the Fund WikiDeal page, your contribution passes through the bonding curve algorithm. Depending on your chosen reward type (Priority 2), you receive Rewards in your personal account.

Rewards accumulate over time. They can be cashed out when the conditions are met — specifically, when sufficient subscription revenue has been generated by active WikiDeal users.

How Rewards Work

1. Funding contribution — You contribute CHF via the funding flow.
2. 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).
3. Credit allocation — Your Credits are split by the Balance Boost mechanism into Rewards (P2) and community pool contributions.
4. Cash-out: When platform conditions allow (sufficient subscription revenue), you can request conversion to CHF.

Where the money comes from: subscription revenue

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 Rewards. As these holders are progressively paid out, their number decreases over time.

The system is sized so that 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 Rewards (Prototype 1)

Within the Prototype 1 framework, Rewards are split into two distinct blocks:

• Early supporters — 50 million Rewards
• Funders / donors (funding contributions) — 50 million Rewards

That is 100 million 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 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 Rewards are simply not distributed in a given period.

Tax Implications

Rewards are not taxable when earned. Tax implications arise only at the moment of cash-out, when Credits are converted to CHF. This is consistent with Swiss tax law for utility credits and supports FINMA sandbox classification as a utility token (not a security).

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

Annual Value Increase

A possible annual percentage increase on rewards is under study through a draft Open Call (not yet launched); no percentage is decided.

Needs Addressed

Rewards address the legitimate financial interests of early funders who take on the highest risk. When WikiDeal has few users, the platform is unproven — early funders deserve recognition for their trust. Rewards provide a conditional path to financial return without creating speculative pressure or securities-law complexity.

No Guarantee — An Honest Design

The absence of guarantee is not a weakness — it is the honest architecture. WikiDeal does not promise what it cannot deliver. Rewards will be distributed when and only when subscription revenue allows. This aligns funder interests with platform growth, not with speculation.

• No financial return is guaranteed. See Terms & Conditions and FAQ for full details. FINMA sandbox rules apply.

See also: Rewards Explained Miles Credits Bonding Curve Balance Boost Subscription Model Funding Contract FAQ

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