Gov/en/Portal:Economy/Need-Driven-Funding: Difference between revisions
Category cleanup: remove Category:Migration June 2026 (founder order 2026-09-03) |
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{{KidsIntro|Need-Driven Funding is a rule of honesty: WikiDeal first says how much money it really needs to run, like a family writing its monthly budget on the fridge. Donations follow that real need, and each donor freely chooses how many of their thank-you | {{KidsIntro|Need-Driven Funding is a rule of honesty: WikiDeal first says how much money it really needs to run, like a family writing its monthly budget on the fridge. Donations follow that real need, and each donor freely chooses how many of their thank-you Subscription Tokens they keep and how much they simply give to the project.}} | ||
{{ExpertIntro|Need-Driven Funding is currently proposed as the mechanism that aligns WikiDeal's funding with the Ynternet.org Foundation's declared needs. The Foundation would publish a need gauge (an initial requirement, for example CHF 100,000, plus a variable functioning cost, for example CHF 12,000 per month (the base hypothesis currently retained, intended to evolve), adjustable); the effective | {{ExpertIntro|Need-Driven Funding is currently proposed as the mechanism that aligns WikiDeal's funding with the Ynternet.org Foundation's declared needs. The Foundation would publish a need gauge (an initial requirement, for example CHF 100,000, plus a variable functioning cost, for example CHF 12,000 per month (the base hypothesis currently retained, intended to evolve), adjustable); the effective Subscription Token multiplier of the bonding curve would follow that declared need. There is one single type of [[Gov/en/Portal:Economy/Subscription Tokens|Subscription Token]] (1 Subscription Token = CHF 1 when cashed out, without guarantee), and at donation time each donor freely chooses how many of the generated Subscription Tokens they keep and how much they leave to the project as pure support. Subscription revenue would then be distributed following the [[Gov/en/Portal:Economy/Revenue-Structure|25/25/50 rule]]. Non-speculative, donation-based, transparent.}} | ||
__TOC__ | __TOC__ | ||
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| See also | | See also | ||
| [[Gov/en/Portal:Economy/ | | [[Gov/en/Portal:Economy/Subscription Tokens|Subscription Tokens]] · [[Gov/en/Portal:Economy/Subscription Tokens-FAQ|Subscription Tokens FAQ]] | ||
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* '''The need gauge.''' The Ynternet.org Foundation would declare its real need publicly: an initial requirement (for example CHF 100,000 invested before the call for funding) plus a variable functioning cost (for example CHF 12,000 per month of operating costs, set at launch and adjustable). While this declared need is not covered, donations would carry the full multiplier of the [[Gov/en/Portal:R&D/Innovations:Bonding Curve|bonding curve]]; once the need is covered and a provision builds up (typically a few months of costs), the effective multiplier would descend continuously — no fixed cap, no sudden thresholds, no arbitrary percentages — and the difference would feed a provision fund intended to be managed by the Ynternet.org Foundation for the maintenance and development of WikiDeal. | * '''The need gauge.''' The Ynternet.org Foundation would declare its real need publicly: an initial requirement (for example CHF 100,000 invested before the call for funding) plus a variable functioning cost (for example CHF 12,000 per month of operating costs, set at launch and adjustable). While this declared need is not covered, donations would carry the full multiplier of the [[Gov/en/Portal:R&D/Innovations:Bonding Curve|bonding curve]]; once the need is covered and a provision builds up (typically a few months of costs), the effective multiplier would descend continuously — no fixed cap, no sudden thresholds, no arbitrary percentages — and the difference would feed a provision fund intended to be managed by the Ynternet.org Foundation for the maintenance and development of WikiDeal. | ||
* '''The donor's free choice.''' At donation time, the donor sees how many [[Gov/en/Portal:Economy/ | * '''The donor's free choice.''' At donation time, the donor sees how many [[Gov/en/Portal:Economy/Subscription Tokens|Subscription Tokens]] their donation generates, and simply chooses how many of those Subscription Tokens they '''keep''' and how much they '''leave to the project''' as pure support. This choice is made at donation time and does not change later. | ||
The mechanism is not about maximizing returns: it is about aligning funding with what the platform actually needs at each stage of growth. The exact formula is intended to be published and reviewed; the research context is documented in the [[#State of the art|state of the art]] below. | The mechanism is not about maximizing returns: it is about aligning funding with what the platform actually needs at each stage of growth. The exact formula is intended to be published and reviewed; the research context is documented in the [[#State of the art|state of the art]] below. | ||
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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. | 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. | ||
Donors and potential donors would receive '''notices''' (suggesting a complementary donation, or informing their network) and would see a | Donors and potential donors would receive '''notices''' (suggesting a complementary donation, or informing their network) and would see a subscription token multiplier that theoretically decreases over time, though not necessarily continuously: the effective multiplier for donors decreases while the share feeding the provision for maintenance and development grows with revenue. | ||
== One single type of | == One single type of Subscription Token == | ||
The model currently proposed uses '''one single type of | The model currently proposed uses '''one single type of Subscription Token''': | ||
* 1 | * 1 Subscription Token = CHF 1 when cashed out, without guarantee of timing. | ||
* The prototype plans about '''100 million | * The prototype plans about '''100 million Subscription Tokens''' in total: about 50 million for donors ([[Gov/en/Portal:Economy/Donation-Roundtable-1|Roundtable 1]]) and about 50 million for early supporters. | ||
* | * Subscription Tokens exist only once generated by actual donations, and become '''activated''' for redistribution under the conditions described in the [[Gov/en/Portal:Economy/Subscription Tokens-FAQ|Subscription Tokens FAQ]]. | ||
== How subscription revenue would be distributed == | == How subscription revenue would be distributed == | ||
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|- | |- | ||
| '''25%''' | | '''25%''' | ||
| Donors: shared equally between all activated donor | | Donors: shared equally between all activated donor Subscription Tokens | ||
|- | |- | ||
| '''25%''' | | '''25%''' | ||
| Early supporters: shared equally between all activated early supporter | | Early supporters: shared equally between all activated early supporter Subscription Tokens | ||
|- | |- | ||
| '''50%''' | | '''50%''' | ||
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Within each group, each subscription franc would be divided by the number of | Within each group, each subscription franc would be divided by the number of Subscription Tokens activated at that moment: only activated Subscription Tokens participate. Credits accumulate with every subscriber; Subscription Tokens convert '''1:1''' into the cash-out balance, and transfers become possible '''from CHF 100'''. There is no guarantee of distribution timing: it depends on revenue growth. | ||
== The donor's free choice: proposed formulas == | == The donor's free choice: proposed formulas == | ||
To make the choice easy at donation time, simple formulas are currently proposed (see the [[Gov/en/Portal:Economy/ | To make the choice easy at donation time, simple formulas are currently proposed (see the [[Gov/en/Portal:Economy/Subscription Tokens-FAQ|Subscription Tokens FAQ]] for details): | ||
* '''Pure Patron''' (×0): everything is given, the pure gift of a patron. | * '''Pure Patron''' (×0): everything is given, the pure gift of a patron. | ||
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* After 12 months: '''CHF 244,000''' raised would mean the initial requirement covered and 12 months of costs covered. | * After 12 months: '''CHF 244,000''' raised would mean the initial requirement covered and 12 months of costs covered. | ||
* The variables are the monthly amount (here 12,000) and the number of months of provision wanted (typically 3): a provision target of 3 x 12,000 = '''CHF 36,000'''. The criteria themselves (what counts as the real need, which costs are incompressible and which are reducible, such as Open Call budgets) are proposed for study in a draft [[Gov/en/Portal:R&D/Open-Calls:Need-Driven-Funding-Criteria|wave 2 Open Call]]. | * The variables are the monthly amount (here 12,000) and the number of months of provision wanted (typically 3): a provision target of 3 x 12,000 = '''CHF 36,000'''. The criteria themselves (what counts as the real need, which costs are incompressible and which are reducible, such as Open Call budgets) are proposed for study in a draft [[Gov/en/Portal:R&D/Open-Calls:Need-Driven-Funding-Criteria|wave 2 Open Call]]. | ||
* On a funding curve where the multiplier is blocked at x100 for the first CHF 200,000 raised (out of a CHF 1,000,000 target), then declines towards x30: once the declared need is covered, the difference between the multiplier promised by the curve and the effective | * On a funding curve where the multiplier is blocked at x100 for the first CHF 200,000 raised (out of a CHF 1,000,000 target), then declines towards x30: once the declared need is covered, the difference between the multiplier promised by the curve and the effective subscription token attributed would benefit the provision fund of the Ynternet.org Foundation. | ||
== Relationship to other mechanisms == | == Relationship to other mechanisms == | ||
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Need-Driven Funding is a companion to the bonding curve, not part of it: | Need-Driven Funding is a companion to the bonding curve, not part of it: | ||
* '''[[Gov/en/Portal:R&D/Innovations:Bonding Curve|Bonding curve]]''' → determines total | * '''[[Gov/en/Portal:R&D/Innovations:Bonding Curve|Bonding curve]]''' → determines total Subscription Tokens generated per CHF. | ||
* '''Need-Driven Funding''' → aligns the effective | * '''Need-Driven Funding''' → aligns the effective subscription token with the Foundation's declared need, and frames the donor's choice of Subscription Tokens kept versus support left to the project. | ||
* '''[[Gov/en/Portal:Economy/Subscriptions|Subscription model]]''' → provides the revenue that would make | * '''[[Gov/en/Portal:Economy/Subscriptions|Subscription model]]''' → provides the revenue that would make Subscription Tokens convertible, following the [[Gov/en/Portal:Economy/Revenue-Structure|25/25/50 rule]]. | ||
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. | 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. | ||
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* Transparent: the need gauge and the distribution formula are intended to be published, auditable, and subject to [[Gov/en/Portal:R&D/Open-Calls:Main|Open Call]] review. | * Transparent: the need gauge and the distribution formula are intended to be published, auditable, and subject to [[Gov/en/Portal:R&D/Open-Calls:Main|Open Call]] review. | ||
* At-cost: no extraction beyond what the platform needs to operate. | * At-cost: no extraction beyond what the platform needs to operate. | ||
* Free choice: each donor decides how many of the generated | * Free choice: each donor decides how many of the generated Subscription Tokens they keep and how much they leave to the project. | ||
Public reporting of subscription revenue, distributions and operational spending is intended to give donors visibility into how the money flows through the system. The [[Gov/en/Portal:Justice/Court-of-Auditors|Court of Auditors]] is currently proposed as the independent body verifying these distributions. | Public reporting of subscription revenue, distributions and operational spending is intended to give donors visibility into how the money flows through the system. The [[Gov/en/Portal:Justice/Court-of-Auditors|Court of Auditors]] is currently proposed as the independent body verifying these distributions. | ||
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== State of the art == | == State of the art == | ||
Adjusting | Adjusting subscription tokens to the real needs of a shared platform relates to the economics of clubs, nonprofit enterprise and threshold funding mechanisms. The references below situate this invention in existing research. | ||
* James M. Buchanan (1965), ''An Economic Theory of Clubs'', Economica, 32(125): [https://doi.org/10.2307/2552442 doi:10.2307/2552442] · [https://en.wikipedia.org/wiki/Club_good club good on Wikipedia]. | * James M. Buchanan (1965), ''An Economic Theory of Clubs'', Economica, 32(125): [https://doi.org/10.2307/2552442 doi:10.2307/2552442] · [https://en.wikipedia.org/wiki/Club_good club good on Wikipedia]. | ||
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* [[Gov/en/Portal:R&D/Innovations:Bonding Curve|Bonding Curve]] | * [[Gov/en/Portal:R&D/Innovations:Bonding Curve|Bonding Curve]] | ||
* [[Gov/en/Portal:Economy/ | * [[Gov/en/Portal:Economy/Subscription Tokens|Subscription Tokens]] | ||
* [[Gov/en/Portal:Economy/ | * [[Gov/en/Portal:Economy/Subscription Tokens-FAQ|Subscription Tokens FAQ]] | ||
* [[Gov/en/Portal:Economy/Revenue-Structure|Revenue Structure]] | * [[Gov/en/Portal:Economy/Revenue-Structure|Revenue Structure]] | ||
* [[Gov/en/Portal:Economy/Subscriptions|Subscription Model]] | * [[Gov/en/Portal:Economy/Subscriptions|Subscription Model]] | ||