Gov/en/Portal:Economy/Financing-Development: Difference between revisions
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Category cleanup: remove Category:Migration June 2026 (founder order 2026-09-03) |
Terminology: Rewards -> Subscription Tokens |
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== Financing Development == | == Financing Development == | ||
WikiDeal's development is financed without venture capital, without debt, and without shareholder equity. Instead, it uses a '''self-financing model''' built on early supporter | WikiDeal's development is financed without venture capital, without debt, and without shareholder equity. Instead, it uses a '''self-financing model''' built on early supporter subscription tokens (bonding curve) and recurring subscription revenue. This page explains how development is funded, what the money covers, and how early supporters are compensated once the platform reaches scale. | ||
WikiDeal finances development through community support (bonding curve ×100 → ×30) + subscriptions (10 CHF/year): no VC, no debt, no equity dilution | WikiDeal finances development through community support (bonding curve ×100 → ×30) + subscriptions (10 CHF/year): no VC, no debt, no equity dilution | ||
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| '''1M CHF (initial)''' | | '''1M CHF (initial)''' | ||
|- | |- | ||
| | | Subscription Tokens issued | ||
| '''50M | | '''50M Subscription Tokens (×100 → ×30 curve)''' | ||
|- | |- | ||
| Early supporters | | Early supporters | ||
| '''50M | | '''50M Subscription Tokens''' | ||
|- | |- | ||
| Total pool | | Total pool | ||
| '''100M | | '''100M Subscription Tokens''' | ||
|- | |- | ||
| Recurring revenue | | Recurring revenue | ||
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WikiDeal rejects the traditional startup financing model (raise VC → grow at all costs → exit). Instead, it uses two complementary mechanisms: | WikiDeal rejects the traditional startup financing model (raise VC → grow at all costs → exit). Instead, it uses two complementary mechanisms: | ||
# '''Early-phase:''' Bonding Curve (×100 → ×30 | # '''Early-phase:''' Bonding Curve (×100 → ×30 subscription token range) → generates initial capital from community supporters | ||
# '''Operating phase:''' Subscription revenue (10 CHF/year × users) → self-sustaining operations + development budget | # '''Operating phase:''' Subscription revenue (10 CHF/year × users) → self-sustaining operations + development budget | ||
This model means WikiDeal's fate is tied to genuine user adoption, not funder appetite. If users don't pay, development stops. If users do pay, development accelerates proportionally. This creates a healthy alignment between product quality and financial health. | This model means WikiDeal's fate is tied to genuine user adoption, not funder appetite. If users don't pay, development stops. If users do pay, development accelerates proportionally. This creates a healthy alignment between product quality and financial health. | ||
=== Bonding Curve: 1M CHF → 100M | === Bonding Curve: 1M CHF → 100M Subscription Tokens === | ||
The initial development phase is funded through the [[Gov/en/Portal:R&D/Innovations:Bonding Curve|Bonding Curve]]. The target is to raise '''1 million CHF''' from early supporters: | The initial development phase is funded through the [[Gov/en/Portal:R&D/Innovations:Bonding Curve|Bonding Curve]]. The target is to raise '''1 million CHF''' from early supporters: | ||
1M CHF raised → 50M | 1M CHF raised → 50M Subscription Tokens issued (×100 → ×30 bonding curve) to funders | ||
+ 50M | + 50M Subscription Tokens reserved for early supporters (dev contributors, community builders) | ||
= 100M | = 100M Subscription Tokens in total | ||
The total pool is 100 million | The total pool is 100 million Subscription Tokens, and nothing more: it is not a cash liability. Subscription Tokens are automatically transformed into subscriptions, honoured progressively at the pace of subscription revenue. | ||
=== Subscription Revenue as Development Fund === | === Subscription Revenue as Development Fund === | ||
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The initial 1M CHF raised through the bonding curve must be "amortized" over time, meaning early supporters must eventually be compensated. This happens through the revenue distribution mechanism, not through direct repayment: | The initial 1M CHF raised through the bonding curve must be "amortized" over time, meaning early supporters must eventually be compensated. This happens through the revenue distribution mechanism, not through direct repayment: | ||
* Early supporters hold | * Early supporters hold Subscription Tokens (from the 100M Subscription Tokens pool) | ||
* As platform revenues grow, 25% of each incoming franc is distributed to their | * As platform revenues grow, 25% of each incoming franc is distributed to their Subscription Tokens, pro rata | ||
* The more | * The more Subscription Tokens you hold, the more you receive from each distribution | ||
* Over time, | * Over time, Subscription Token holders would see their Subscription Tokens honoured progressively, within the limit set by the ×100 → ×30 bonding curve | ||
ℹ️ There is no fixed repayment schedule. Compensation depends on platform growth. Early supporters accept this risk explicitly: the ×100 → ×30 bonding curve is the | ℹ️ There is no fixed repayment schedule. Compensation depends on platform growth. Early supporters accept this risk explicitly: the ×100 → ×30 bonding curve is the subscription token for accepting early-stage uncertainty. | ||
=== How each incoming franc is distributed === | === How each incoming franc is distributed === | ||
Each franc of revenue, whether it comes from a CHF 10 yearly subscription or from a CHF 1 monthly payment, is intended to be distributed as follows: | Each franc of revenue, whether it comes from a CHF 10 yearly subscription or from a CHF 1 monthly payment, is intended to be distributed as follows: | ||
* '''25%''' to the | * '''25%''' to the Subscription Tokens of the '''donors''' of the first Donation Roundtable, pro rata to the Subscription Tokens each donor holds; | ||
* '''25%''' to the | * '''25%''' to the Subscription Tokens of the '''early supporters''', pro rata on the same principle; | ||
* '''50%''' to the '''current operating costs''' of WikiDeal. | * '''50%''' to the '''current operating costs''' of WikiDeal. | ||
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|- | |- | ||
! Incoming revenue | ! Incoming revenue | ||
! Donors' | ! Donors' Subscription Tokens (25%) | ||
! Early supporters' | ! Early supporters' Subscription Tokens (25%) | ||
! Operating costs (50%) | ! Operating costs (50%) | ||
|- | |- | ||
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|} | |} | ||
* The CHF 25,000 for donors is distributed pro rata across all donor | * The CHF 25,000 for donors is distributed pro rata across all donor Subscription Token holders: a donor holding 1% of the donors' Subscription Tokens pool receives CHF 250 that month; | ||
* The CHF 25,000 for early supporters is distributed pro rata on the same principle: an early supporter holding 2% of the early supporters' | * The CHF 25,000 for early supporters is distributed pro rata on the same principle: an early supporter holding 2% of the early supporters' Subscription Tokens pool receives CHF 500; | ||
* CHF 50,000 covers WikiDeal's current operating costs. | * CHF 50,000 covers WikiDeal's current operating costs. | ||
Each distributed franc reduces the holder's remaining | Each distributed franc reduces the holder's remaining Subscription Tokens balance by the same amount. The pace therefore scales with subscription revenue: the more users subscribe, the faster Subscription Tokens are honoured. Cash out is available in increments of at least CHF 100. These figures are an illustration of the mechanism, not a projection or a commitment. | ||
=== Development Roadmap Funding === | === Development Roadmap Funding === | ||
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* Financial reports are published quarterly, including development spending breakdown | * Financial reports are published quarterly, including development spending breakdown | ||
'''See also:''' [[Gov/en/Portal:R&D/Innovations:Bonding Curve|Bonding Curve]] [[Gov/en/Portal:Economy/Subscriptions|Subscription Model]] Revenue Structure [[Gov/en/Portal:Economy/ | '''See also:''' [[Gov/en/Portal:R&D/Innovations:Bonding Curve|Bonding Curve]] [[Gov/en/Portal:Economy/Subscriptions|Subscription Model]] Revenue Structure [[Gov/en/Portal:Economy/Subscription Tokens|Subscription Tokens Explained]] Subscription Token Simulation | ||
[[Category:Funding]] | [[Category:Funding]] | ||