Gov/en/Portal:Economy/Funder-Stories

💡 In simple words: This page shares stories from people who gave money to support WikiDeal.

Funder Stories: How Kim & Noah Earn Their Rewards

From WikiDeal, a Wikipedia of e-commerce · Pilot 1, Prototype 1 · Socio-Technical Innovation, WikiDeal concept (credits)

WikiDeal's financial mechanisms can seem complex at first. This page walks through two fictional but realistic profiles, Kim and Noah, to show exactly how each step works: from initial contribution, through Reward allocation, to monthly rewards and cashout. These are illustrative examples based on the Prototype 1 model.

Meet Kim & Noah

Kim: A 34-year-old community organizer based in Seoul. Believes in cooperative economics and wants to support WikiDeal's early phase with CHF 1,000.

Noah: A 28-year-old software developer in Tokyo. Interested in the Wikinomics model, contributes CHF 5,000 to WikiDeal's first funding call.

Step 1: The Contribution (Bonding Curve)

When a funder contributes CHF to WikiDeal, the amount is processed through the Bonding Curve formula. The bonding curve determines how many Rewards are issued in return. Crucially, the earlier a funder contributes (when the reserve is low), the more Rewards they receive per CHF. This is the Bonding Curve advantage, not a payout multiplier.

• Kim contributes CHF 1,000 → receives approximately CHF 100 worth of Rewards (example from bonding curve formula at r=0: ~100 CHF reward = ~10,000 Rewards at CHF 0.01 per Reward)
• Noah contributes CHF 5,000 → receives approximately CHF 476 worth of Rewards (~47,600 Rewards)

Early funders get more Rewards per CHF because the reserve is low. As more contributions accumulate, the bonding curve adjusts, and each subsequent CHF brings fewer Rewards. This is an inherent property of the formula, not a promotional bonus.

Step 2: Reward Allocation (Need-Driven Funding)

Not all Rewards go directly to the funder. The Need-Driven Funding mechanism splits the total Rewards between the funder's personal Rewards and a community pool. This allocation is determined at funding time: it does not change later.

• The Need-Driven Funding percentage (P2) defines how much goes to Rewards vs. the community pool.
• Example: if the Need-Driven Funding percentage is set at 70%:
• Kim's 10,000 Rewards → 7,000 personal Rewards + 3,000 to the community pool
• Noah's 47,600 Rewards → 33,320 personal Rewards + 14,280 to the community pool

The community pool portion supports WikiDeal's broader civic and operational goals. The Rewards held by Kim and Noah are what generate future rewards.

Step 3: 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.

Step 4: Monthly Subscription Revenue Distribution

The primary ongoing reward mechanism is the distribution of WikiDeal's monthly subscription revenue across all Rewards in circulation. The formula is linear and transparent:

Revenue per Reward = Total monthly subscription revenue ÷ 100,000,000

The denominator (100,000,000) represents the total Rewards in the system. This keeps the formula stable and predictable as WikiDeal scales.

Example Scenario

WikiDeal has 50,000 active subscribers paying CHF 1/month = CHF 50,000/month total revenue.

• Revenue per Reward = CHF 50,000 ÷ 100,000,000 = CHF 0.0005 per Reward per month
• Kim (7,000 Rewards) earns: CHF 0.0005 × 7,000 = CHF 3.50/month
• Noah (33,320 Rewards) earns: CHF 0.0005 × 33,320 = CHF 16.66/month

Scaling Effect

As WikiDeal grows its subscriber base, rewards scale proportionally for all Reward holders:

Active Subscribers	Monthly Revenue (CHF 1/sub)	Revenue/Reward	Kim (7,000 Rewards)	Noah (33,320 Rewards)
10,000	CHF 10,000	CHF 0.0001	CHF 0.70/month	CHF 3.33/month
50,000	CHF 50,000	CHF 0.0005	CHF 3.50/month	CHF 16.66/month
200,000	CHF 200,000	CHF 0.002	CHF 14.00/month	CHF 66.64/month
500,000	CHF 500,000	CHF 0.005	CHF 35.00/month	CHF 166.60/month
1,000,000	CHF 1,000,000	CHF 0.01	CHF 70.00/month	CHF 333.20/month

Note: these figures assume CHF 1/month per subscriber and a fixed Reward count for Kim and Noah. Actual rewards will vary based on real subscription pricing and total Rewards in circulation.

Step 5: Cashout Conditions

Kim and Noah can convert their Rewards to CHF when the cashout conditions defined by the protocol are met. Key principles:

• No speculation: The CHF value of each Reward is defined entirely by the algorithm. There is no secondary market, no price volatility.
• Revenue-linked: Cashout is possible when sufficient subscription revenue has been generated to cover the redemption. This ensures the system remains solvent and sustainable.
• Transparent timing: The protocol defines clear thresholds for when cashout windows open, Kim and Noah can track this through their contributor dashboard.
• Proportional: Cashout amounts are proportional to the number of Rewards held and the current CHF value per Reward at the time of redemption.

This design eliminates speculative risk for contributors while ensuring WikiDeal can meet its obligations as it scales revenue.

See also

• Rewards
• Bonding Curve
• Need-Driven Funding mechanism
• Rewards Explained