Gov/en/Portal:R&D/Innovations:Need-Driven Funding

💡 In simple words: The Need-Driven Funding is a tool that keeps money flowing in a steady, fair way. It smooths out the ups and downs so the platform always has enough support to keep going, like a savings jar that balances good months and slow months.

Formerly known as Boost, Balanced Boost or Funding Stabilizer: those names are deprecated.

Wiki Core · Concept

Need-Driven Funding

Need-Driven Funding at a Glance

Type	Second algorithm
Separate from	Bonding Curve
Purpose	Cash/Miles ratio regulation
Cap	None — continuous curve
Driver	Funding/costs ratio
Speculation	❌ None — at-cost
See also	Rewards
See also	Miles Credits
See also	Success Criteria

The Need-Driven Funding is a second algorithm — entirely separate from the bonding curve — that regulates the ratio between Rewards and community pool contributions based on the real needs of the platform. It is non-speculative, transparent, and designed to reflect actual funding dynamics rather than market forces.

The Need-Driven Funding mechanism is not about maximizing returns — it is about aligning Credit distribution with what the platform actually needs at each stage of growth.

How Need-Driven Funding Works

The Need-Driven Funding mechanism continuously adjusts the split between:

Personal Credits (Rewards, P2) — held in individual accounts, potentially convertible to CHF
Community pool — funding User Groups, shared Infrastructure, collective projects (including Miles Credits for services)

The ratio changes based on the platform's funding/costs ratio. This is a continuous curve — there is no fixed cap, no sudden thresholds, no arbitrary percentages.

The Sequence: Miles First, Then Cash

The Need-Driven Funding mechanism follows a defined sequence:

First: Miles Credits increase — In early stages, more Credits flow to the community pool (Miles Credits for services). The platform needs community engagement more than it needs to reward individual funders.
Then: Rewards increase — As the platform grows and subscription revenue rises, more Credits flow to personal accounts (Rewards). Funders who waited are progressively rewarded.

This sequence ensures the platform builds real utility first, then returns value to funders who made that utility possible.

No Fixed Cap — Continuous Curve

Unlike static split models, the Need-Driven Funding mechanism uses a continuous curve. At no point is there a hard cap on Rewards or a fixed percentage. The curve is:

Linked to the funding/costs ratio (more funding relative to costs → more Rewards flow)
Responsive to real operational data, not speculation
Published and auditable — community members can verify the calculation

The Reconquest of Business Management by the People

The Need-Driven Funding mechanism embodies a core WikiDeal principle: the reconquest by the people of business management. By making the Cash/Miles ratio transparent and need-driven, WikiDeal eliminates the usual "platform takes as much as possible" dynamic. The algorithm serves the community, not shareholders.

Non-speculative: ratio changes based on real needs, not market sentiment
Transparent: formula published, auditable, subject to Open Call review
At-cost: no extraction beyond what the platform needs to operate
Community-first: Miles Credits flow first, ensuring community utility is built before personal returns are maximized

Relationship to Other Mechanisms

The Need-Driven Funding mechanism is a companion to the bonding curve, not part of it:

Bonding curve → determines total Credits generated per CHF
Need-Driven Funding mechanism → determines how those Credits are split (Cash vs. community)
Subscription model → provides the revenue that makes Rewards convertible

See also: Bonding Curve Rewards Miles Credits Subscription Model Success Criteria Open Call Guide

💡 Improve this concept — submit a proposal via Open Call