Gov/en/Portal:Economy/Rewards-FAQ

💡 In simple words: 💡 In simple words: This page answers common questions about Rewards: how they work, when subscription money is shared, and why donating early is a smart move.

🎯 In 20 seconds (scientific summary): 🎯 In 20 seconds: Subscription revenue is redistributed only to active Rewards, i.e. those already generated by actual donations, not to the full theoretical pool planned for the prototype. Early donors therefore get more Rewards per franc (bonding curve) and cash out faster, since they share subscription income among fewer holders.

This FAQ covers the most frequent questions about Rewards and how subscription revenue is redistributed to their holders during Prototype 1 (Cycle 1).

1. Is subscription money distributed across all the Rewards planned for the prototype?

No. Subscription revenue is distributed only to Rewards that are active.

When someone buys a one-month subscription for 1 CHF/EUR, that amount is not spread over the full pool of roughly 50 million Rewards theoretically planned for the prototype (the pool that would result from the expected CHF 1 million in donations). It is redistributed only among the Rewards that already exist, i.e. those generated by donations actually received so far.

Example: Suppose that out of the expected CHF 1 million, only CHF 100,000 has been raised so far. Thanks to the bonding curve multiplier, this may have generated, say, 10 million active Rewards. In that case, every subscription payment is redistributed exclusively among the holders of these 10 million active Rewards. As donations grow, the number of active Rewards grows with them, and subscription revenue is then shared among a larger pool.

2. Why this "first come, first served" mechanism?

This design gives early donors a double advantage:

• More Rewards per franc donated, thanks to the bonding curve (higher multiplier at the start).
• Faster cash-out at the beginning: since early donors share subscription income among fewer Reward holders, each active Reward receives its share sooner.

Even though it is likely that the majority of Rewards will be cashed out only after the full first million has been raised, this initial advantage creates a strong incentive to participate early.

3. What happens as more donations arrive?

Each new donation generates new active Rewards according to the bonding curve. The pool of active Rewards therefore expands progressively toward the full amount planned for the prototype. Subscription revenue is always shared among the active Rewards existing at the time of redistribution — never among Rewards that have not yet been generated.

4. If I donate CHF 1,000 at a x64 multiplier, does my whole donation get x64?

Yes. The displayed multiplier is applied flat to the entire donation.

For reasons of simplicity and clarity, the multiplier is not degressive within a single donation (e.g. no averaging between x64 and x63.5 franc by franc). If the multiplier displayed at the moment of your donation is x64, then CHF 1,000 generates exactly 64,000 Rewards. The bonding curve algorithm then recalculates a new, lower multiplier after your transaction, which applies to the next donor.

5. What about large donations by bank transfer — can someone "reserve" a high multiplier and never pay?

No: a bank-transfer pledge must be secured immediately by a credit-card down payment.

Large donations (e.g. above CHF 1,000 or CHF 5,000) are often paid by bank transfer, which takes a few days to arrive. To keep the bonding curve fair and prevent someone from artificially blocking a high multiplier (which would penalise subsequent donors), the person committing to a bank transfer must immediately pay a down payment by credit card (for example 5% to 10% of the pledged amount). This down payment reserves the multiplier. If the bank transfer is not completed within the agreed deadline, the down payment is kept to compensate for the cancellation.

See also

• Rewards
• FAQ for Donors
• Subscriptions
• 🇫🇷 Version française de cette FAQ