Gov/en/Portal:Justice/Court-of-Auditors

🎯 In 20 seconds (scientific summary): We are heading towards decentralised financial ecosystems requiring independent governance oversight. This hypothesis proposes that institutional audit frameworks, adapted from public accounting standards, can establish trust in dual-governance structures (Foundation + operating Associations) managing multi-stage fundraising (bonding curves), reward distribution, and subscription-based sustainability. The emerging trend suggests auditor independence and transparent compliance mechanisms become essential as financial flows scale across distributed stakeholders.

💡 In simple words: this is the team that checks WikiDeal's money and books to make sure nobody is cheating and everything adds up.

All Pages › Governance › Court of Auditors

Court of Auditors

Global Governance & Financial Audit

Version 0.1 · Draft for Steering Committee discussion · June 2026 This content awaits more human validation. Learn more · Improve/edit this page

1. Background & Rationale

WikiDeal operates within a dual governance structure:

• Ynternet.org Foundation: the parent entity responsible for vision, strategy, incubation, and deployment of the WikiDeal ecosystem
• Association WikiDeal Prototype 1: a private association that has received a management mandate from Ynternet.org Foundation to operate the first prototype of the WikiDeal marketplace

This distinction is fundamental: the Foundation defines the rules and oversees the ecosystem; the Association executes within that mandate. Future prototypes may be entrusted to the same or a different operating entity, depending on performance and Steering Committee decision.

Within this structure, financial flows (donations, Rewards, subscription revenue, marketplace commissions, and Need-Driven Funding flows) circulate among supporters, Users Groups, and service providers. As these flows scale, rigorous governance becomes essential to maintain trust, prevent abuse, and ensure alignment with both WikiDeal's own principles and internationally recognised standards of public accountability.

Financial Context: Prototype 1

The WikiDeal Prototype 1 is built on a CHF 1,000,000 fundraising target, structured in two stages:

• Stage 1 (CHF 0–200,000): Development of foundational tools: bonding curve engine, finance infrastructure, quality assurance framework
• Stage 2 (CHF 200,000–1,000,000): Full deployment of the bonding curve mechanism and scaled marketplace development

The fundraising operates via a bonding curve (multiplier blocked at ×100 for the first CHF 200,000, then declining towards ×30, fixed algorithm) that ensures fair, predictable pricing for early funders.

The Reward structure (one single type of Reward, 1 Reward = CHF 1 when cashed out) distributes as follows:

• 50 million Rewards allocated to Early Supporters, outside the bonding curve
• 50 million Rewards generated for donors who contribute the expected CHF 1M. At donation time, within the frame of the Need-Driven Funding (which aligns the effective reward with the Foundation's declared needs), each donor freely chooses how many of the generated Rewards they keep and how much they leave to the project as pure support
• Ongoing sustainability is covered by monthly or yearly user subscriptions (CHF 10/year or CHF 1/month), whose revenue is intended to follow the 25/25/50 rule: 25% to donors, 25% to Early Supporters, 50% to the operations of the project

The Court of Auditors' mandate covers the integrity of this entire mechanism, from bonding curve execution to Reward distribution, subscription management, and commission ethics.

The design of this governance body is grounded in established institutional audit best practices and quality accounting standards, drawing on recognised public audit frameworks developed by leading audit institutions and international standards bodies (see Section 8 for the full reference framework).

2. The WikiDeal Court of Auditors

2.1 Name & Positioning

Official name: WikiDeal Court of Auditors

Users Group designation: Court of Auditors - Global Governance & Financial Audit Positioning: An independent oversight body within the WikiDeal ecosystem, chaired by a recognised expert in public audit, reporting to the Steering Committee.

Note: This is not an accounting department. The Court of Auditors focuses on governance quality, compliance, efficiency, and ethical standards applied to WikiDeal's financial and operational flows.

2.2 Mandate

The WikiDeal Court of Auditors shall:

1. Define and maintain quality standards for the management of all WikiDeal financial flows, grounded in established institutional audit best practices and quality accounting standards
2. Audit the fairness and compliance of WikiDeal's reward mechanisms, commission structures, and fund distribution processes
3. Oversee Open Calls quality: verify that Open Calls, Targeted Calls, and Target Priority Needs meet defined quality criteria for transparency, fairness, and efficiency
4. Promote ethical governance across Users Groups, ensuring proportionate compliance expectations based on each group's scale of operations
5. Issue recommendations and track their implementation across the WikiDeal ecosystem
6. Operate a stakeholder alert mechanism allowing WikiDeal participants to flag governance concerns

3. Core Quality Criteria

The following criteria are adapted from recognised institutional audit frameworks, transposed to the WikiDeal context:

3.1 Legality & Regulatory Compliance

• Conformity of all financial flows with applicable Swiss law and WikiDeal's own governance rules
• Compliance of donation contracts with Swiss foundation law (Ynternet.org Foundation)
• Adherence to data protection and transparency requirements

3.2 Efficiency & Economy

• Cost-effectiveness of commission structures (WikiDeal target: 5–15% vs. 10–50% market average)
• Optimal use of Need-Driven Funding resources
• Proportionality of administrative overhead relative to transaction volume

3.3 Effectiveness & Impact

• Measurable outcomes of Open Calls and Targeted Calls
• Reward distribution accuracy and timeliness
• Users Group performance relative to stated objectives

3.4 Fairness & Ethics

• Ethical assessment of commission levels and rebates to users
• Equal-share integrity in Reward distribution (each distributed franc divided equally among the Rewards activated at that moment, within each group)
• Prevention of conflicts of interest in Users Group management
• Equitable treatment of Early Supporters (25% share of subscription revenue under the 25/25/50 rule)

3.5 Transparency & Accountability

• Public availability of audit findings and recommendations
• Tracking and reporting of recommendation adoption rates
• Clear documentation of all financial decisions and their rationale

4. Specific Audit Domains

4.1 Rewards System

• 25/25/50 split accuracy: Verify that subscription revenue is allocated 25% to donors, 25% to Early Supporters, and 50% to the operations of the project
• Distribution accuracy: Audit that, within each group, each distributed franc is divided equally among the Rewards activated at that moment, and that only activated Rewards participate
• Activation registry integrity: Verify the records of Reward activations (payment confirmations, including bank transfers taking up to 7 days, and the invitations to the optional donor webinar)
• Consumption and cash-out: Verify the 1:1 consumption rule (each CHF credited consumes one Reward) and that cash-out transfers respect the CHF 100 minimum
• Payment fees: Verify that payment processing fees (e.g. Stripe) are charged to the payer and passed through, never deducted from the redistribution

4.2 Marketplace Commissions

• Benchmark commissions against WikiDeal's stated cost-price principle
• Verify that surpluses are effectively returned to users
• Audit commission transparency and disclosure to marketplace participants

4.3 Users Groups Governance

Scaled compliance: Define graduated compliance requirements based on transaction volume:

• Low-volume groups (< CHF 10,000/year): Simplified reporting, annual self-assessment
• Medium-volume groups (CHF 10,000–100,000/year): Semi-annual audit review, standard compliance checklist
• High-volume groups (> CHF 100,000/year): Full annual audit, detailed financial reporting, independent review

Operational efficiency: Assess whether Users Groups deliver services proportionate to the resources they consume

Governance standards: Verify adherence to "1 user = 1 vote" principle

4.4 Open Calls & Targeted Calls Quality

• Process quality: Verify that call design, evaluation criteria, and selection processes meet transparency and fairness standards
• Outcome quality: Assess whether funded initiatives deliver on stated objectives
• Target Priority Needs: Ensure priority-setting processes are documented, justified, and free from undue influence
• Animate thematic governance calls: The Chair may initiate or co-lead Open Calls on key governance and audit questions, ensuring that the prototype evolves through the most participative and democratic process possible

4.5 Bonding Curve & Fundraising Integrity

• Bonding curve execution: Verify that the algorithm (×100 blocked on the first CHF 200,000, then declining towards ×30) is applied without modification
• Two-stage fundraising: Confirm that Stage 1 funds (CHF 0–200K) are used exclusively for foundational tools before Stage 2 scaling
• Early Supporters allocation: Audit that the 50M Rewards allocation and the 25% subscription-revenue share are consistently applied
• Donor reward mechanism: Verify that donor Rewards are generated correctly, that the effective multiplier follows the published Need-Driven Funding rule, and that each donor's choice (Rewards kept versus support left to the project) is faithfully recorded
• Subscription revenue: Ensure that monthly/yearly subscription flows are correctly allocated following the 25/25/50 rule

4.6 Proportionality Principle

All audit procedures, reporting requirements, and compliance expectations must be proportionate to the financial volumes at stake. The Court of Auditors applies graduated levels of scrutiny:

• Early-stage / low-volume flows: Simplified oversight, lightweight reporting
• Growing flows (CHF 10K–100K): Standard compliance review
• Significant flows (CHF 100K+): Full audit rigour

This ensures governance does not become excessive relative to the sums managed, a core design principle adapted from Swiss proportionality standards.

5. Phased Mission (10% engagement over 1–2 years)

Phase 1: Foundations (Months 1–6, ~48 hours/quarter)

Objective: Establish the governance framework

• Map institutional audit quality criteria to WikiDeal's specific context
• Draft the WikiDeal Audit Charter defining scope, authority, independence, and reporting lines
• Define graduated compliance standards for Users Groups (by volume tier)
• Establish baseline audit criteria for Rewards, Commissions, and Open Calls
• Deliver: WikiDeal Audit Charter v0.9 + Quality Standards Reference Document

Phase 2: Pilot Audits (Months 7–12, ~48 hours/quarter)

Objective: Test and refine the framework through initial audits

• Conduct first audit cycle on the Rewards distribution mechanism
• Perform a pilot Open Call quality review (1–2 calls)
• Assess marketplace commission transparency on first live use cases
• Refine quality criteria based on findings
• Deliver: First Audit Report + Revised Quality Standards v1.1

Phase 3: Operational Deployment (Months 13–24, ~48 hours/quarter)

Objective: Full-cycle governance with recurring oversight

• Establish recurring audit calendar (semi-annual for core flows, annual for Users Groups)
• Launch the stakeholder alert mechanism (based on established institutional whistleblowing frameworks)
• Animate thematic Open Calls on key governance questions
• Track and publish recommendation adoption rates
• Train emerging Users Group leaders on compliance expectations
• Deliver: Annual Governance Report + Recommendation Tracking Dashboard

6. Users Group Structure

Group name: Court of Auditors - Global Governance & Financial Audit Type: Oversight Users Group (non-operational, advisory with audit authority) Chair: Appointed by the Steering Committee (expert in public audit and institutional governance)

Composition (target)

• Chair (public audit expert): 10% time (48 hours/quarter)
• 1 dedicated assistant, supporting the Chair in documentation, follow-up, and coordination
• WikiDeal Internal AI: a powerful AI system assisting in rapid formalisation, wiki-based evolution of quality criteria, compliance monitoring, and audit report generation
• 2–3 volunteer auditors (recruited progressively from the WikiDeal community or Swiss governance networks)

Governance & Independence

• Reporting: Directly to the Steering Committee of Ynternet.org Foundation. The Court of Auditors is an oversight body of the Foundation, not of the Association WikiDeal Prototype 1. This ensures structural independence from the operating entity it audits.
• Audit scope: The Court audits the Association WikiDeal Prototype 1 (and any future mandated operating entity) on behalf of the Foundation.
• Independence: The Court of Auditors operates independently from operational Users Groups and from the Association WikiDeal Prototype 1. Its members may not simultaneously hold operational management roles within WikiDeal or the mandated association.

7. Deliverables Summary

Phase	Timeline	Key Deliverables
Phase 1	Months 1–6	Audit Charter, Quality Standards Reference, Compliance Tiers
Phase 2	Months 7–12	First Audit Report, Revised Standards v1.1, Open Call Review
Phase 3	Months 13–24	Annual Report, Alert Mechanism, Recommendation Tracking

8. Reference Framework

This mission draws on the following sources and standards:

• Cour des comptes de la République et Canton de Genève: Constitutional mandate, audit methodology, citizen alert system (cdc-ge.ch)
• Swiss Federal Audit Office (CDF): Federal audit standards and cross-cantonal best practices
• INTOSAI (International Organisation of Supreme Audit Institutions): International Standards of Supreme Audit Institutions (ISSAIs)
• WikiDeal Financial Model: Bonding curve, Reward structure, commission principles (Ynternet.org Foundation)
• Swiss Code of Obligations / Foundation Law: Legal framework for Ynternet.org Foundation operations

Summary

The WikiDeal Court of Auditors is an independent oversight body reporting to the Ynternet.org Foundation Steering Committee. Its mandate covers governance quality, financial compliance, reward mechanism integrity, Open Call standards, and proportionate audit coverage for all Users Groups. Grounded in established institutional audit best practices, it operates across three phases (Foundations, Pilot Audits, Operational Deployment) over 1–2 years at 10% engagement (~48 hours/quarter for the Chair).