Gov/en/Portal:Economy/Need-Driven-Funding: Difference between revisions
Redistribution narrative: remove ROI/yield vocabulary (Theo 2026-07-16) |
Terminology: miles / Miles Credits -> WIL token (WikiDeal Inner Life), Theo 2026-07-16 |
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= Need-Driven Funding: The Subscription Distribution Formula = | = Need-Driven Funding: The Subscription Distribution Formula = | ||
The '''Need-Driven Funding''' mechanism is WikiDeal's core financial formula. It determines how subscription revenue is divided between '''Rewards''' (paid to early supporters) and ''' | The '''Need-Driven Funding''' mechanism is WikiDeal's core financial formula. It determines how subscription revenue is divided between '''Rewards''' (paid to early supporters) and '''WIL tokens''' (contributed to the ecosystem) based on WikiDeal's financial health at any moment. | ||
== The Core Principle == | == The Core Principle == | ||
| Line 16: | Line 16: | ||
* Administrative overhead | * Administrative overhead | ||
The Need-Driven Funding formula automatically adjusts the '''cash-to- | The Need-Driven Funding formula automatically adjusts the '''cash-to-WIL-token ratio''' to ensure this minimum is always met, while maximizing the flow of value back to the community. | ||
== The Formula == | == The Formula == | ||
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IF Monthly Subscription Revenue ≥ CHF 25,000: | IF Monthly Subscription Revenue ≥ CHF 25,000: | ||
• Rewards: Variable (remaining after minimum) | • Rewards: Variable (remaining after minimum) | ||
• | • WIL tokens: Balance (prioritized) | ||
IF Monthly Subscription Revenue < CHF 25,000: | IF Monthly Subscription Revenue < CHF 25,000: | ||
• Rewards: Priority (to meet minimum) | • Rewards: Priority (to meet minimum) | ||
• | • WIL tokens: Remainder only | ||
== How It Works: Two Scenarios == | == How It Works: Two Scenarios == | ||
| Line 37: | Line 37: | ||
! Monthly Subscription Revenue | ! Monthly Subscription Revenue | ||
! Cash to Early Supporters | ! Cash to Early Supporters | ||
! | ! WIL tokens to Ecosystem | ||
! Decision | ! Decision | ||
|- | |- | ||
| Line 64: | Line 64: | ||
* '''Protects early supporters:''' They receive a minimum redistribution if subscription revenue meets targets | * '''Protects early supporters:''' They receive a minimum redistribution if subscription revenue meets targets | ||
* '''Protects the ecosystem:''' As revenue grows, | * '''Protects the ecosystem:''' As revenue grows, WIL tokens flow increases exponentially, not linearly | ||
* '''Protects operations:''' The CHF 25,000/month minimum ensures governance and events never suffer | * '''Protects operations:''' The CHF 25,000/month minimum ensures governance and events never suffer | ||
* '''Creates incentives:''' Growing user adoption benefits everyone—no one benefits from stagnation | * '''Creates incentives:''' Growing user adoption benefits everyone—no one benefits from stagnation | ||
| Line 78: | Line 78: | ||
* Operational minimum: CHF 25,000 | * Operational minimum: CHF 25,000 | ||
* Rewards (25%): CHF 25,000 | * Rewards (25%): CHF 25,000 | ||
* | * WIL tokens (remaining): CHF 50,000 | ||
''Early supporters receive their share; ecosystem gets most.'' | ''Early supporters receive their share; ecosystem gets most.'' | ||
| Line 90: | Line 90: | ||
* Operational minimum: CHF 16,667 (all available) | * Operational minimum: CHF 16,667 (all available) | ||
* Rewards: CHF 8,334 (50% of total) | * Rewards: CHF 8,334 (50% of total) | ||
* | * WIL tokens: CHF 8,334 (50% of total, still contributes) | ||
''No surplus; everything goes to operations and core rewards.'' | ''No surplus; everything goes to operations and core rewards.'' | ||
| Line 102: | Line 102: | ||
* Operational minimum: CHF 25,000 | * Operational minimum: CHF 25,000 | ||
* Rewards (25%): CHF 104,167 | * Rewards (25%): CHF 104,167 | ||
* | * WIL tokens (remaining): CHF 287,500 | ||
''Explosive ecosystem growth; early supporters well-rewarded; operations fully funded.'' | ''Explosive ecosystem growth; early supporters well-rewarded; operations fully funded.'' | ||
| Line 130: | Line 130: | ||
'''This is not fixed forever.''' As WikiDeal scales, operational costs may increase (more events, larger team, etc.). The formula will adjust accordingly, but the principle remains: operational health comes first, ecosystem growth second. | '''This is not fixed forever.''' As WikiDeal scales, operational costs may increase (more events, larger team, etc.). The formula will adjust accordingly, but the principle remains: operational health comes first, ecosystem growth second. | ||
== | == WIL tokens vs. Cash: The Trade-Off == | ||
In early, bootstrapping phases, there's an important trade-off: | In early, bootstrapping phases, there's an important trade-off: | ||
'''⚠️ When revenue is tight:''' More cash goes to operations, fewer | '''⚠️ When revenue is tight:''' More cash goes to operations, fewer WIL tokens flow to the community. This is intentional. It's better to have a stable, well-run ecosystem with slower WIL tokens growth than an underfunded one that collapses. | ||
However, as WikiDeal grows, ''' | However, as WikiDeal grows, '''WIL tokens accelerate exponentially''' because the operational minimum becomes a tiny fraction of total revenue. | ||
== Transparency & Auditing == | == Transparency & Auditing == | ||
| Line 143: | Line 143: | ||
* Total subscription revenue | * Total subscription revenue | ||
* Cash and | * Cash and WIL token distributions (absolute and percentage) | ||
* Operational spending against the CHF 25,000 budget | * Operational spending against the CHF 25,000 budget | ||
* Cumulative totals toward the CHF 500M break-even target | * Cumulative totals toward the CHF 500M break-even target | ||
| Line 151: | Line 151: | ||
== The Long-Term Vision == | == The Long-Term Vision == | ||
Need-Driven Funding is designed to be '''self-liquidating.''' As subscription revenue grows and early supporters' initial contribution is repaid (via the 25% allocation in the [[Gov/en/Portal:Economy/Subscriptions|four-lot model]]), their need for rewards diminishes. Eventually, nearly 100% of subscription revenue can flow to ecosystem | Need-Driven Funding is designed to be '''self-liquidating.''' As subscription revenue grows and early supporters' initial contribution is repaid (via the 25% allocation in the [[Gov/en/Portal:Economy/Subscriptions|four-lot model]]), their need for rewards diminishes. Eventually, nearly 100% of subscription revenue can flow to ecosystem WIL tokens and community projects. | ||
This creates a natural evolution: | This creates a natural evolution: | ||
* '''Years 1–3:''' Balanced (cash ↔ | * '''Years 1–3:''' Balanced (cash ↔ WIL tokens) | ||
* '''Years 3–5:''' | * '''Years 3–5:''' WIL-token-heavy (70–80% WIL tokens) | ||
* '''Years 5+:''' Ecosystem-first (90%+ | * '''Years 5+:''' Ecosystem-first (90%+ WIL tokens) | ||
WikiDeal transforms from a startup (needing to repay founders) to a commons (where value flows to participants). | WikiDeal transforms from a startup (needing to repay founders) to a commons (where value flows to participants). | ||
[[Category:Migration June 2026]] | [[Category:Migration June 2026]] | ||
<!-- visible --> | <!-- visible --> | ||
Revision as of 21:44, 16 July 2026
💡 In simple words: The Need-Driven Funding is a fair rule that decides how the monthly money is split. It makes sure the platform always keeps enough to run, then shares the rest between rewards and the community.
Formerly known as Boost, Balanced Boost or Funding Stabilizer: those names are deprecated.
Need-Driven Funding: The Subscription Distribution Formula
The Need-Driven Funding mechanism is WikiDeal's core financial formula. It determines how subscription revenue is divided between Rewards (paid to early supporters) and WIL tokens (contributed to the ecosystem) based on WikiDeal's financial health at any moment.
The Core Principle
WikiDeal must maintain a minimum operational budget of CHF 25,000 per month to cover:
- Project management and coordination
- Governance and voting infrastructure
- Annual community events and sessions
- Administrative overhead
The Need-Driven Funding formula automatically adjusts the cash-to-WIL-token ratio to ensure this minimum is always met, while maximizing the flow of value back to the community.
The Formula
Need-Driven Funding Distribution:
IF Monthly Subscription Revenue ≥ CHF 25,000: • Rewards: Variable (remaining after minimum) • WIL tokens: Balance (prioritized)
IF Monthly Subscription Revenue < CHF 25,000: • Rewards: Priority (to meet minimum) • WIL tokens: Remainder only
How It Works: Two Scenarios
| Scenario | Monthly Subscription Revenue | Cash to Early Supporters | WIL tokens to Ecosystem | Decision |
|---|---|---|---|---|
| Growing (Healthy) | CHF 100,000+ | ~25% (CHF 25,000) | ~75% (CHF 75,000+) | Generous reward ratio; ecosystem gets most |
| Bootstrapping (Lean) | CHF 25,000–50,000 | ~50% (CHF 12,500–25,000) | ~50% (CHF 12,500–25,000) | Balanced; operational needs met |
| Critical (Survival) | <CHF 25,000 | ~100% (all available) | 0% (deferred) | All funds to minimum operational budget |
Why "Balanced"?
The formula is called "Balanced" because it:
- Protects early supporters: They receive a minimum redistribution if subscription revenue meets targets
- Protects the ecosystem: As revenue grows, WIL tokens flow increases exponentially, not linearly
- Protects operations: The CHF 25,000/month minimum ensures governance and events never suffer
- Creates incentives: Growing user adoption benefits everyone—no one benefits from stagnation
Examples
Example 1: Early Growth (10K Users)
Monthly subscription revenue: CHF 100,000 (10,000 users × CHF 10/year ÷ 12)
Distribution:
- Operational minimum: CHF 25,000
- Rewards (25%): CHF 25,000
- WIL tokens (remaining): CHF 50,000
Early supporters receive their share; ecosystem gets most.
Example 2: Bootstrapping (2K Users)
Monthly subscription revenue: CHF 16,667 (2,000 users × CHF 10/year ÷ 12)
Distribution:
- Operational minimum: CHF 16,667 (all available)
- Rewards: CHF 8,334 (50% of total)
- WIL tokens: CHF 8,334 (50% of total, still contributes)
No surplus; everything goes to operations and core rewards.
Example 3: Momentum (50K Users)
Monthly subscription revenue: CHF 416,667 (50,000 users × CHF 10/year ÷ 12)
Distribution:
- Operational minimum: CHF 25,000
- Rewards (25%): CHF 104,167
- WIL tokens (remaining): CHF 287,500
Explosive ecosystem growth; early supporters well-rewarded; operations fully funded.
The CHF 25,000/Month Minimum
This budget covers:
Project Coordination (50%)
CHF 12,500/month
Leadership, planning, stakeholder engagement
Governance & Events (30%)
CHF 7,500/month
Voting infrastructure, annual conference, monthly sessions
Administration & Operations (20%)
CHF 5,000/month
Legal, accounting, facilities, misc.
This is not fixed forever. As WikiDeal scales, operational costs may increase (more events, larger team, etc.). The formula will adjust accordingly, but the principle remains: operational health comes first, ecosystem growth second.
WIL tokens vs. Cash: The Trade-Off
In early, bootstrapping phases, there's an important trade-off:
⚠️ When revenue is tight: More cash goes to operations, fewer WIL tokens flow to the community. This is intentional. It's better to have a stable, well-run ecosystem with slower WIL tokens growth than an underfunded one that collapses.
However, as WikiDeal grows, WIL tokens accelerate exponentially because the operational minimum becomes a tiny fraction of total revenue.
Transparency & Auditing
WikiDeal commits to monthly public reporting of:
- Total subscription revenue
- Cash and WIL token distributions (absolute and percentage)
- Operational spending against the CHF 25,000 budget
- Cumulative totals toward the CHF 500M break-even target
Early adopters will have real-time visibility into how their subscription money flows through the system.
The Long-Term Vision
Need-Driven Funding is designed to be self-liquidating. As subscription revenue grows and early supporters' initial contribution is repaid (via the 25% allocation in the four-lot model), their need for rewards diminishes. Eventually, nearly 100% of subscription revenue can flow to ecosystem WIL tokens and community projects.
This creates a natural evolution:
- Years 1–3: Balanced (cash ↔ WIL tokens)
- Years 3–5: WIL-token-heavy (70–80% WIL tokens)
- Years 5+: Ecosystem-first (90%+ WIL tokens)
WikiDeal transforms from a startup (needing to repay founders) to a commons (where value flows to participants).