Democratic Financial Redistribution Ideas

How will the Cells of the Earth organization use the contributions from idea investors??

A bit of a refresher from a previous post: Let’s assume a core team of 5 people is already formed. We are all work investors.

As I see it, the 5 roles for this team are:

• Public relationships (I call this social connector)
• Platform development (all the programming, applications development, web development etc,.)
• Democratic finance development (in charge of developing and designing the financial module of the platform where the community would be able to see the flow of money, it is a like a banking software with accounts for all users but with absolute trading visibility to the community)
• Culture design (In charge of designing and setting the organizational culture of the community, the leaders by example that expect to replicate their biobusiness genetic code, the how we work, to all cells/investors)
• Legal organizing research group (They are in charge of finding out the ways for our idea investment to operate legally, privately and independent from the public burocracy that slows down processes).

My vision is that every member of the core team, will have to get a group of work investors themselves to develop all this, which means that each core member, will create a core group for the Cells of the Earth as an organization. Meanwhile and/or simultaneously, few idea investors will be appearing in the platform providing feedback to those core groups. With time, more idea investors and more feedback, there will be a financial redistribution to these 5 core groups, but also there will be demand for those core groups to become, let’s say intrabusinesses, which are businesses that one the one hand provide additional value to the organization by keeping its platform development and organizational functioning up to date for the community, and on the other hand, they can offer their service to idea investors.

There are so far two options:

1. Using 50% of the income towards organization leadership, and 25% towards core groups and 25% towards the platform community.

Organization leadership income goal = AUD$68000 per year by December 2013. (includes AUD$8000 per year for vehicle expenses and subscriptions)

Core groups = AUD$38000 per year by December 2013. Once a year, the entire platform community vote for the core group of the organization that has been more beneficial to the community. The 25% of AUD$136k would be distributed according to votes.

Platform Community = AUD$38000 per year by December 2013. Once a year, members of core groups vote for 5 idea investments that are, have been or have the potential to be more beneficial for all investors in the community. 25% of AUD$136k would be distributed according to votes. An example, someone is working on offering organic food as a service rather than as goods. His plan is to help you set up your food basket to be picked up from your back yard. Not a gardener?? Not a problem, he’ll keep the garden for you, or he’ll link you with home growers to supply part of your food basket. “Cells of the Earth” considers this project to have a huge potential to help the organization to develop complementary currencies and thus liberate official currencies, and also to progress as a society towards food security.

Goal timeframe 50/50 distribution	Income goals per year			Income goals per month
	50% Organization Leadership	25/25 towards core groups/platform community	100%  Platform	50%	25/25 towards core groups/platform community	100% Platform
12-Jun	$17,000.00	$8,500.00	$34,000.00	$1,416.67	$708.33	$2,833.33
12-Dec	$34,000.00	$17,000.00	$68,000.00	$2,833.33	$1,416.67	$5,666.67
13-Jun	$51,000.00	$25,500.00	$102,000.00	$4,250.00	$2,125.00	$8,500.00
13-Dec	$68,000.00	$34,000.00	$136,000.00	$5,666.67	$2,833.33	$11,333.33

Goal timeframe 50/50 distribution	Ideas required per year to generate $136,000.00			Ideas required per month to generate $136,000.00
	at $200 each	$150 each	$100 each	at $200 each	$150 each	$100 each
12-Jun	170	226.67	340	14.17	18.89	28.33
12-Dec	340	453.33	680	28.33	37.78	56.67
13-Jun	510	680.00	1020	42.50	56.67	85.00
13-Dec	680	906.67	1360	56.67	75.56	113.33

If idea investors contribute $100 per idea per month, note that AUD$34,000.00 if divided equally between 5 core groups, which would be AUD$6,800.00 a year. That number doesn’t seem enough to me to catalyze processes within the organization.

On the other hand, it seems to me that the amount of ideas required to achieve the financial goals is not too big, regardless of idea investors contributing $200 or $100. This is a good opportunity for the core team to keep up with the load of work and feedback.

Let’s explore option 2.

2. Using 20% of the income towards organization leadership and 80% towards core groups.

Organization leadership income goal = AUD$68000 per year by December 2013. (includes AUD$8000 per year for vehicle expenses and subscriptions)

Core groups = AUD$136,000.00 per year by December 2013. Once a year, the entire platform community vote for the core group of the organization that has been more beneficial to the community. The 40% of AUD$340,000.00 would be distributed according to votes.

Platform Community = AUD$136,000.00  per year by December 2013. Once a year, members of core groups vote for 5 idea investments that are, have been or have the potential to be more beneficial for all investors in the community. 40% of AUD$340,000.00 would be distributed according to votes. Another example, someone is working on a car pooling and rental system that would reduce the traffic on streets and would make it convenient for you to not own a private car but having permanent access to good quality, safe vehicles all the time. “Cells of the Earth” considers this project to have a huge potential to help the organization to develop complementary currencies and thus liberate official currencies, and also to progress as a society towards non growth dependence.

Goal timeframe 20/80 distribution	Income goals per year			Income goals per month
	20% Organization Leadership	40/40  towards core groups/platform community	100%  Platform	20%	40/40  towards core groups/platform community	100% Platform
12-Jun	$17,000.00	$34,000.00	$85,000.00	$1,416.67	$2,833.33	$7,083.33
12-Dec	$34,000.00	$68,000.00	$170,000.00	$2,833.33	$5,666.67	$14,166.67
13-Jun	$51,000.00	$102,000.00	$255,000.00	$4,250.00	$8,500.00	$21,250.00
13-Dec	$68,000.00	$136,000.00	$340,000.00	$5,666.67	$11,333.33	$28,333.33

Goal timeframe 20/80 distribution	Ideas required per year to generate $340,000.00			Ideas required per month to generate $340,000.00
	at $200 each	$150 each	$100 each	at $200 each	$150 each	$100 each
12-Jun	425	566.67	850	35.42	47.22	70.83
12-Dec	850	1133.33	1700	70.83	94.44	141.67
13-Jun	1275	1700.00	2550	106.25	141.67	212.50
13-Dec	1700	2266.67	3400	141.67	188.89	283.33

If idea investors contribute $100 per idea per month, note that AUD$136,000.00 if divided equally between 5 core groups, would be AUD$27,200.00 a year. It sounds to me that this amount can work more as a catalyst of processes within the organization than the AUD$6,800.00 a year in a 50/50 distribution.

On the other hand, the number of ideas required to achieve financial goals from the beginning looks big to me. There is a risk of overwhelming the core team and core groups. But I do expect more work investors than idea investors…there could be some balance of workloads there.

If I had to stick to one of the options right now, I’d vote option 2 at $200 per idea per month. But if there is a possibility of starting with option 1 and progress to option 2, I’d take the time to explore it.

The reason to set organizational leadership income goals and work backwards from there, is that the goal is for the organization not to be dependent on infinite growth to function. It is not that the organization needs more and more. It requires a minimum to function but most importantly and it allows cyclical growth, which implies the acceptance and welcoming of periods of depression or recession as innovation and change opportunities.