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The Experiment

What is this?

This is not mere theory. Smartup Zero is a real-time experiment in building a totally new kind of digital organization—one designed from the ground up to fix the system misalignments holding back progress on the SDGs. Here we present the core architecture of a Smartup.

just give me the abstract

The Smartup Hypothese is a set of rules, processes, workflows and tools that together form an operation system designed to have large group of people work together efficiently, transparant and mission-driven on tools that should help people drive the SDG’s forward. In essence we are trying to build a better toolkit for future generations. The operation system is described below as a living oranganism. We’ll dive in it’s it’s natural habitat, it’s anatomy, it’s metabolism and In a Smartup, “citizens” work collaboratively and interchangeably on ideas that have the potential to break old paradigms and show new ways forward. It is an organization designed to create tools for people to work both on and within their communities.

The Architecture of a Smartup

Definition:
A Smartup creates trustworthy digital tools that help people—and the communities they form—become more resilient, resourceful, and effective in advancing the SDGs.

At its core, every Smartup is built like a rocket: a solid foundation, three structural pillars, and a sharp point of execution.

Centered image

The Foundation (Our Fuel)

  • Science:
    Every tool we create is grounded in facts, evidence, and tested knowledge. The problems we tackle are science-proven, and solutions must stand up to real-world scrutiny.
  • Democracy:
    Our process and decisions are open and participatory. Everyone has a voice and a vote; no gated hierarchies, no closed rooms.
  • Collective IQ:
    We are smarter together. All skills and ideas are pooled so we solve more, faster, and with better results than any one person or small group could alone.

The Three Pillars (Our Structure)

  • Collective Ownership
    Everyone who joins and contributes is an equal owner. There are no founders, investors, or external shareholders—just people "in it" together.

  • Collective Craftsmanship
    All work and effort are shared—teams build, improve, and sustain everything the Smartup delivers. Value is earned by doing, not by owning capital.

  • Collective Governance
    Decision-making and oversight are for everyone. Every contributor holds both rights and responsibilities for what the Smartup does and how it does it.

The Nose Cone (Our Edge)

  • Military Execution
    While we are democratic in nature, we are military in execution. When the General Forum sets a target, the Workplace hits it with precision. Clear chains of command, proven processes like the buddy system, and professional discipline ensure we don't just talk about change—we deliver it.

Why a rocket?

A Smartup is a vehicle for change. The foundation powers us, the pillars keep us stable, and military execution cuts through obstacles. Together, these elements create an organization that can actually reach its destination: a world where digital tools serve collective human needs.

The 4 Phases of Creation - The Habitat of a Smartup

What is this?

Every Smartup grows through four clear, community-driven phases. This rhythm—from first idea to real-world launch—ensures that only validated, sustainable, and well-governed solutions reach the market. At every step, the decision to move forward belongs to the entire Smartup community.

  • Phase 1: Validation

    The Question: "Does the world needs this??"

    Entrepreneurs and early adopters rally a vibrant community around a solution, showing real traction in people and resources.

    Thresholds to advance:

    • [ ] Financial target reached
    • [ ] Official Smartup Business Plan ready
    • [ ] Leadership Team formed
    • [ ] Majority community vote

    Learn more

  • Phase 2: Design

    The Question: "How can we build this sustainably and efficiently?"

    Contributors create blueprints through open collaboration, with rigorous scientific review before development begins.

    Thresholds to advance:

    • [ ] Financial target reached
    • [ ] Design Blueprint delivered
    • [ ] Science Team review passed
    • [ ] Majority community vote

    Learn more

  • Phase 3: Production

    The Focus: From thinking to building

    The community creates an MVP, tests with real citizens, and prepares for launch after scientific and market validation.

    Thresholds to advance:

    • [ ] Financial target reached
    • [ ] Version 1.0 beta tested
    • [ ] Market assessment complete
    • [ ] Majority community vote

    Learn more

  • Phase 4: Organization

    The Goal: Ready for the world

    Build the team and structure for market launch. Executive team chosen, legal framework set, always with community validation.

    Thresholds for launch:

    • [ ] Financial target reached
    • [ ] Executive team formed
    • [ ] Final Business Plan ready
    • [ ] Majority community vote

    Learn more

The Common Thread

Notice how each phase requires four key elements:

  1. Financial sustainability - Resources to continue
  2. Concrete deliverable - Something tangible produced
  3. Expert validation - Scientific or market review
  4. Democratic approval - The community decides

This ensures what's being built is wanted, sound, and fully owned by the community at every step.

flowchart LR
    V[🔍 Validation<br/><sub>Prove demand</sub>]
    D[📐 Design<br/><sub>Create blueprint</sub>]
    P[🔨 Production<br/><sub>Build & test</sub>]
    O[🚀 Organization<br/><sub>Launch ready</sub>]

    V -.->|Community Vote| D
    D -.->|Community Vote| P
    P -.->|Community Vote| O
    O ==>|To Market!| M[🌍]

    style V stroke:#ffd23f,stroke-width:3px
    style D stroke:#ffd23f,stroke-width:3px
    style P stroke:#ffd23f,stroke-width:3px
    style O stroke:#ffd23f,stroke-width:3px
    style M stroke:#8bc34a,stroke-width:3px

Why these phases?

Each phase ensures what’s being built is wanted, sound, and fully owned by the community before advancing. Built-in checkpoints—majority votes and scientific reviews—keep momentum aligned with trust and quality at every step.

Next: See how Smartup teams, roles, and workflows make collective building a reality.

Continue to Anatomy & Workflows

The Smartup Organism

What is this?

To create real, relevant technology, a Smartup can’t just be a loose network—it needs to be a productive, living system. But if nobody has absolute power—not even a CEO—how do decisions get made and meaningful work actually happen? The answer: the Smartup is a new kind of “organism” built for collective intelligence and self-organization.

Democratic by Nature, Military in Execution

A Smartup is a unique sociotechnical organism that combines democratic governance with military-precision execution. This hybrid design solves a fundamental challenge: how to maintain collective ownership while actually getting things done.

The Design Principle

We are democratic where it matters most: In the General Forum, every citizen has equal voice, equal vote, equal responsibility. Here we decide WHAT we build and WHY—our mission, values, and strategic direction.

We are disciplined where speed matters: In the Workplace, we apply military-inspired command structures and proven operational processes. Here we decide HOW we build—with clear roles, accountability, and chains of command.

Learning from Failed Models

Pure Democracy Everywhere = Endless debates, nothing ships
Pure Hierarchy Everywhere = Mission drift, worker alienation
Our Hybrid = Collective ownership + Professional execution

Smartup Anatomy

If you could slice a Smartup open, you’d see something that looks more like a living ecosystem than a traditional corporate pyramid. Instead of strict hierarchy and top-down control, power and responsibility are distributed through a holacratic structure: nested groups, each supporting the whole.

“Holacracy is a new way of structuring and running your organization that replaces the conventional management hierarchy. Instead of top-down, power is distributed throughout, giving individuals and teams more freedom to self-manage, while staying aligned to the organization’s purpose.”
— holacracy.org

In a Smartup, these circles are groups—each one crucial for the whole, each one depending on—and empowering—the next.

The Six Groups of Productivity

A Smartup is designed so that all ownership, work, and governance flow through six nested groups.
Think of them as a set of Russian dolls: each group contains smaller subgroups, but all belong to the "mother" at the center, the General Forum.

Centered image

  • 1. General Forum

    The heart of the Smartup

    All citizens (owners) gather here to discuss, propose, vote, and oversee everything. It's the public square for collective direction and accountability.

    Members: All Smartup owners
    Moderated by: Leadership Team

  • 2. Workplace

    The production engine

    Citizens with a work license join to build what matters. Here, talk turns into action: plans become teams, teams build real things.

    Members: All workers (colleagues)
    Moderated by: Leadership Team

  • 3. Teams

    Home base for specialized work

    Every worker joins at least one team—design, development, business. Teams focus effort and harness specific skills toward shared goals.

    Members: Workers in same team (teammates)
    Moderated by: Team Captain

  • 4. Roles

    How you contribute

    In each team, workers apply for roles that fit their talents—UX designer, developer, communicator. Roles define responsibility and access.

    Members: Workers with same role (peers)
    Moderated by: Team Captain

  • 5. Objectives

    What's to be achieved

    Teams progress by accomplishing specific missions, like "Create Android app front-end." Each objective unites multiple roles.

    Members: Workers on same objective (squad)
    Moderated by: Mission Leader

  • 6. Tasks

    Where work happens

    The smallest—and most important—unit. Tasks create measurable progress. Complete task, create value, get rewarded.

    Members: Assigned workers
    Moderated by: Mission Leader

The Nested Structure

Each group lives within the one above it:
- General Forum contains → Workplace
- Workplace contains → Teams
- Teams contain → Roles
- Roles work on → Objectives
- Objectives break into → Tasks
This creates clear accountability chains while maintaining democratic oversight at the top.

The Metabolism - How a Smartup Lives and Breathes

What is this?

If the 6 Groups show a Smartup's anatomy (structure), the metabolism shows how it actually functions—how we communicate, make decisions, and get work done through the ADM Triangle system powered by the buddy system.

When we examine a Smartup as a living organism, we need to understand not just its structure, but how it sustains itself. Just as a body needs circulation and digestion, a Smartup needs processes for communication, decision-making, and documentation. This is where we discover the ADM Triangle—the metabolic engine that powers every interaction.

The Buddy System: Never Work Alone

At the core of our metabolism lies a simple but powerful principle borrowed from military operations: you never work alone. In a Smartup, every task, every decision, every action involves at least two people working in partnership.

Why Buddies Matter

The buddy system serves multiple vital functions:
- Accountability: Freedom with responsibility
- Support: Help when stuck or overwhelmed
- Quality: Built-in peer review
- Learning: Juniors learn by observing seniors
- Resilience: No single point of failure

The Learning Loop

What makes our buddy system special is that it's designed as a learning mechanism:

graph LR
    J[Junior Role<br/><sub>Defender/Assistant</sub>] 
    S[Senior Role<br/><sub>Attacker/Worker</sub>]
    T[Task Execution]
    L[Learning & Growth]

    S -->|Performs| T
    J -->|Observes & Assists| T
    T -->|Creates| L
    L -->|Promotes| J
    J -.->|Becomes| S

The 90/10 Split: When a task is completed: - Worker (Senior) receives 90% of the budget
- Assistant (Junior) receives 10%

This isn't just payment for monitoring—it's investment in developing the next generation of senior contributors.

The ADM Triangle: Our Operating System

Building on the buddy system, every interaction in a Smartup follows the Attacker, Defender, Midfielder (ADM) pattern:

graph TD
    A[Attacker/Senior<br/><sub>Drives action forward</sub>]
    D[Defender/Junior<br/><sub>Learns while ensuring quality</sub>]
    M[Midfielder/Bot<br/><sub>Coordinates & documents</sub>]

    A <--> M
    D <--> M
    A -.->|Mentors| D

How It Works in Practice

ADM in Action: Task Execution

Scenario: A senior developer takes on the task "Deploy emergency mesh network prototype"
1. Senior Developer (Attacker): Implements solution, explains decisions
2. Junior Developer (Defender): Assists, learns patterns, validates effort
3. Bot (Midfielder): Logs activity, manages check-ins
The junior isn't just watching—they're actively learning deployment processes, understanding architectural decisions, and preparing to lead similar tasks in the future.

Learning by Doing

"The assistant learns how the worker solves a specific task and gains knowledge and skills. Defenders are literally learning to become seniors."

Beyond Surveillance: A Learning Organization

This Isn't About Control

Traditional organizations use monitoring for compliance and control. In a Smartup, the buddy system creates a learning environment where:
- Juniors gain real experience with safety nets
- Seniors develop mentoring and leadership skills
- Knowledge spreads organically through the organization
- No one carries administrative burden alone
The defender role isn't a watchdog—it's an apprenticeship. This transforms what could feel like surveillance into an opportunity for growth.

The Freedom to Shift: Horizontal Career Development

What makes Smartup identity truly revolutionary is voluntary role shifting. Unlike traditional organizations where you're locked into your expertise, we embrace career fluidity.

Role Shifting in Practice

Marcus has been a senior backend developer for 5 years. He's excellent at it, but getting bored.
Traditional Organization: Marcus is stuck. His value is tied to his seniority in backend. Moving to UX means starting over, losing status and pay.
In a Smartup: Marcus can:
- Continue taking senior backend tasks when he wants (90% as attacker)
- Join the UX team as a junior member
- Take on UX tasks as a defender (10%, learning from senior UX designers)
- Gradually build UX skills while maintaining backend income
- Eventually take on senior UX roles as skills develop
Result: Marcus expands his skillset, stays engaged, and the Smartup gains a developer who understands both backend AND user experience.

Why This Matters

For Individuals: - Never get trapped in a single role
- Learn new skills while earning
- Find renewed passion through variety
- Build cross-functional understanding
For the Smartup:
- Retain talented people who might otherwise leave from boredom
- Create bridges between teams through shared members
- Build resilience—more people can cover more roles
- Foster innovation through cross-pollination

The Learning Economy

This fluid identity system creates what we call a learning economy:

graph LR
    SE[Senior Expert<br/><sub>Feeling Stagnant</sub>]
    JL[Junior Learner<br/><sub>in New Domain</sub>]
    ME[Multi-skilled Expert<br/><sub>Cross-functional</sub>]
    IV[Increased Value<br/><sub>To Individual & Smartup</sub>]

    SE -->|Chooses to Explore| JL
    JL -->|Learns Through Tasks| ME
    ME -->|Creates| IV
    IV -->|Enables More| SE

Breaking the Specialization Trap

"Traditional organizations want you to stay in your box—it's easier to manage. But humans aren't meant to do one thing forever. A Smartup embraces our natural desire to grow, learn, and evolve."

Why Identity Shifting Matters

Identity in Action

Sarah is a senior developer who's curious about business development. Watch her fluid day:
9:00 AM - General Forum: As a CITIZEN, she votes on strategic direction, her voice equal to everyone's.
9:30 AM - Workplace: As a COLLEAGUE, she discusses overall progress in the OSBP.
10:00 AM - Dev Team: As a senior TEAM MEMBER, she guides technical architecture decisions.
11:00 AM - Task #42: As an ATTACKER, she codes a critical feature (earning 90% of task value).
2:00 PM - Business Team: As a junior TEAM MEMBER, she joins market research discussions.
3:00 PM - Task #78: As a DEFENDER, she assists on a competitor analysis task, learning from the senior business developer (earning 10% while learning).
End of Day: Sarah earned well from her senior work AND gained business skills. The Smartup gets a developer who understands market pressures.

The Power of Context

By explicitly naming who we are in each space, we:
- Prevent power dynamics from poisoning collaboration
- Create psychological safety for honest communication
- Enable rapid context switching without confusion
- Build empathy by experiencing multiple perspectives
- Allow graceful transition between expert and learner modes

Making the Shift

Switching roles in a Smartup is designed to be frictionless:

  • See an interesting team? Join their public channel
  • Want to learn? Apply for junior roles in that team
  • Keep earning: Maintain senior roles in your expertise area
  • Grow gradually: Take on more advanced tasks as you learn
  • No permission needed: Your career path is yours to design

Identity Protocols: Who We Become in Each Space

What is this?

As we move between the 6 groups, we don't just change what we do—we change who we are. These identity protocols teach us how to show up in each space for maximum collective effective$

The Six Identities We Embody

  • In the General Forum --- We are CITIZENS

    Equal voice, equal vote, equal responsibility. Here, the newest contributor has the same rights as the founding team. We debate, propose, and decide as equals.

    "In this space, I am a citizen with rights and obligations"

  • In the Workplace --- We are COLLEAGUES

    United by shared mission. We may have different skills and tasks, but we're all building toward the same vision. Collaboration over competition.

    "In this space, I am a colleague working for our shared idea"

  • In Teams --- We are TEAM MEMBERS

    Aligned on objectives. We coordinate our diverse skills toward specific goals, supporting each other's growth and success.

    "In this space, I am a team member working on our objectives"

  • In Roles --- We are PEERS

    Sharing expertise. Whether senior or junior, we're united by our craft, helping each other improve and solve technical challenges.

    "In this space, I am a peer sharing skills and knowledge"

  • In Objectives --- We are SQUAD MEMBERS

    Aligned on objectives. We coordinate our diverse skills toward specific goals, supporting each other's growth and success.

    "In this space, I am a team member working on our objectives"

  • In Roles --- We are PEERS

    Sharing expertise. Whether senior or junior, we're united by our craft, helping each other improve and solve technical challenges.

    "In this space, I am a peer sharing skills and knowledge"

  • In Objectives --- We are SQUAD MEMBERS

    Present and focused. We're here now, working on this specific mission, coordinating in real-time to achieve our goal.

    "In this space, I am a squad member present and engaged"

  • In Tasks --- We are ATTACKERS & DEFENDERS

    Executing with discipline. We take on specific roles—driving work forward or ensuring quality—with clear accountability.

    "In this space, I am actively attacking or defending this task"

Why Identity Shifting Matters

Identity in Action

Sarah is a senior developer in Smartup Zero. Watch how she shifts:

9:00 AM - General Forum: As a CITIZEN, she votes on whether to pursue mesh networking, weighing in equally with designers and business developers.

9:30 AM - Workplace: As a COLLEAGUE, she reviews the overall ONLIFE roadmap, offering technical insights while respecting other disciplines.

10:00 AM - Dev Team: As a TEAM MEMBER, she coordinates with other developers on the sprint plan.

10:30 AM - Backend Role: As a PEER, she mentors a junior backend developer struggling with mesh protocols.

11:00 AM - "Build MVP" Objective: As a SQUAD MEMBER, she syncs with frontend and QA on today's integration.

11:30 AM - Task #42: As an ATTACKER, she codes the mesh discovery feature while her junior DEFENDER reviews and learns.

The Power of Context

By explicitly naming who we are in each space, we:
- Prevent power dynamics from poisoning collaboration
- Create psychological safety for honest communication

- Enable rapid context switching without confusion
- Build empathy by experiencing multiple perspectives

Learning the Dance New contributors often struggle with identity shifting at first. That's normal—we're conditioned by traditional organizations to maintain rigid roles. But with practice, this fluidity becomes natural and empowering.

Identity Discipline

These aren't just nice ideas—they're operational requirements. In our Matrix/Element spaces, channels are named and moderated to reinforce these identities. Bringing "boss energy" to a peer space or "individual contributor" mindset to the General Forum disrupts our collective intelligence

The Meta-Transparency Layer: ADM Between Groups

What is this?

The ADM Triangle doesn't just operate within groups—it creates a transparency cascade from the outside world all the way down to individual tasks, ensuring accountability and alignment at every level.

We've seen how the ADM Triangle works within each group. But the true power emerges when we see how it connects the groups themselves, creating what we call the meta-transparency layer—a complete chain of accountability from public oversight to task execution.

The Oversight Cascade

Each group in our 6-layer structure maintains oversight of the group below it through its own ADM Triangle:

  • 0_timeline → General Forum
    A: Citizens taking initiative with proposals/votes
    D: Leadership team ensuring quality moderation
    M: Bot documents everything to 0_timeline
    The outside world sees our governance in action

  • General Forum → Workplace
    A: Colleagues taking initiative with work
    D: Leadership team ensuring OSBP compliance
    M: Bot reports progress to General Forum
    Citizens oversee how work gets done

  • Workplace → Teams
    A: Team members taking initiative in teams
    D: Team captains ensuring strategy/budgets
    M: Bot reports team health to Workplace
    Colleagues oversee team formation

  • Teams → Roles
    A: Peers taking initiative in skill areas
    D: Team captain ensuring roles are filled
    M: Bot reports role coverage to Teams
    Teams oversee skill distribution

  • Roles → Objectives
    A: Squad members taking initiative on missions
    D: Mission leaders ensuring coordination
    M: Bot reports objective progress to Roles
    Peers oversee objective participation

  • Objectives → Tasks
    A: Worker taking initiative to complete
    D: Assistant ensuring quality/learning
    M: Bot reports task status to Objectives
    Squads oversee task execution

The Complete Transparency Flow

graph TD
    OT[0_timeline<br/>Outside World]
    GF[1_general_forum<br/>All Citizens]
    WP[2_workplace<br/>All Colleagues]
    TM[3_teams<br/>Team Members]
    RL[4_roles<br/>Peers]
    OB[5_objectives<br/>Squad Members]
    TS[6_tasks<br/>Worker + Assistant]

    OT -->|oversees| GF
    GF -->|oversees| WP
    WP -->|oversees| TM
    TM -->|oversees| RL
    RL -->|oversees| OB
    OB -->|oversees| TS

    TS -.->|reports up| OB
    OB -.->|reports up| RL
    RL -.->|reports up| TM
    TM -.->|reports up| WP
    WP -.->|reports up| GF
    GF -.->|reports up| OT

A Complete Flow Example

Let's follow a decision from inception to execution:

Day 1 - Citizen Initiative:
In the General Forum, citizens (A) propose adding mesh networking to ONLIFE. Leadership team (D) facilitates discussion. Bot (M) publishes proposal to 0_timeline.

Day 3 - Vote Passes:
Colleagues in Workplace (A) volunteer to implement. Leadership team (D) ensures it fits OSBP. Bot (M) reports commitment to General Forum.

Day 5 - Team Forms:
Dev team members (A) organize around mesh networking. Team captain (D) allocates budget and strategy. Bot (M) reports team formation to Workplace.

Day 7 - Roles Activate:
Backend peers (A) define mesh protocol skills needed. Team captain (D) ensures roles are properly staffed. Bot (M) reports skill gaps to Teams.

Day 10 - Objective Launches:
Squad members (A) begin "Build Mesh Prototype" objective. Mission leader (D) coordinates resources. Bot (M) reports progress to Roles.

Day 12 - Tasks Execute:
Senior dev (A) codes mesh discovery feature. Junior dev (D) assists and learns. Bot (M) logs 4 hours work, reports completion to Objective.

Result: Complete transparency from public proposal to code commit. Every stakeholder can trace the path.

Why This Matters

Traditional organizations hide their operations behind closed doors. Our meta-transparency means:
- Public can see how decisions become reality
- Citizens can track their proposals through execution
- Workers understand why they're building what they're building
- No black boxes, no hidden agendas
- Trust through transparency at every level

Information Overload?

With transparency at every level, we risk drowning in data. That's why the bot middleware is crucial—it filters and summarizes, ensuring each level gets the right amount of detail. Citizens don't see every git commit; task workers don't get flooded with governance debates.

The meta-transparency layer completes our metabolic system. It ensures that our democratic ideals don't get lost in execution, and our military efficiency doesn't override our collective ownership. Every action is visible, every decision traceable, every contributor accountable—not through surveillance, but through systematic transparency.

Douglas Engelbart on Human Capability

"The key thing about all the world's big problems is that they have to be dealt with collectively. If we don't get collectively smarter, we're doomed. A person's effectiveness isn't

Smartup Business: Building a 24/7 SDG Enterprise

What is this?

A Smartup isn't a charity or volunteer project—it's a professional business operation that measures success in SDG progress rather than profit margins. Here we document our economic model: how money flows, how work gets valued, and how ownership creates both efficiency and equity.

The Business Reality

When we look at traditional approaches to SDG challenges, we see a pattern that keeps failing us. NGOs burn out on donation fatigue, never achieving the scale needed for real impact. Social enterprises start with good intentions but get pulled toward profit over purpose when investors come knocking. Volunteer projects, despite passionate contributors, can't maintain the professional quality that complex global challenges demand.

We need something different—a model that combines business discipline with public good DNA.

What Makes a Smartup Different

We are a business that:
- Attracts top talent with fair pay (not volunteerism)
- Maintains professional standards (not hobby quality)
- Operates 24/7 globally (not weekend projects)
- Measures success in SDG progress (not stock prices)
- Shares ownership equally among builders (not founders/VCs)

This isn't ideological—it's practical. To solve civilization-scale problems, we need civilization-scale operations. That means professional quality, sustainable economics, and aligned incentives from day one.

Not Anti-Business, New Business

We're not rejecting capitalism or profit. We're demonstrating that business discipline can serve collective goals when ownership, incentives, and success metrics align with social good. Profit becomes fuel for mission, not the mission itself.

Revenue Model: The Four License System

What is this?

Every Smartup needs capital to operate. Instead of selling equity to VCs, we sell membership to our community. But unlike traditional equity, every license—whether €200 or €5000—carries exactly one vote and one equal share of future success.

The License Structure

  • Campaign License (FREE) --- Gateway to participation

    • Access public information
    • Help spread awareness
    • Upgrade to paid tiers anytime
    • Perfect for students, low-income supporters
      Rights: Advocacy and public info access

  • Watch License (€100+) --- Full governance participation

    • Access General Forum
    • Vote on all decisions
    • View all documentation
    • Equal ownership share
      Rights: Everything except task work

  • Work License (€200+) --- Complete operational access

    • Everything in Watch +
    • Claim and complete tasks
    • Earn SC through work
    • Join teams and roles
      Rights: Full citizenship

  • Organizational License (€5000+) --- Institutional partnership

    • One vote (maintains democracy)
    • Designate one representative
    • Use as training ground
    • Simplified grant admin
      Rights: Strategic partnership

Organizational License in Action

University Computer Science Department buys organizational license:
- Students work on ONLIFE for real-world experience
- University gets one vote in governance
- Professor acts as designated representative
- Students gain skills building emergency communication systems
- University supports SDG progress while training talent
Result: Win-win-win for education, SDGs, and Smartup

Price Progression Through Phases

graph LR
    V[Validation<br/>Low prices<br/>High risk] --> D[Design<br/>2x prices<br/>Proven concept]
    D --> P[Production<br/>4x prices<br/>Working prototype]
    P --> O[Organization<br/>8x prices<br/>Market ready]

Why Prices Increase

Early supporters: Take more risk → Pay less
Later joiners: Get more certainty → Pay more
Free tier: Always available → Never excludes
Transparency: Price increases announced in advance
Leadership decides: Each Smartup sets based on needs

Equal Ownership Principle

"Whether you buy a €200 work license or a €5000 organizational license, you get exactly one vote and one equal share. This isn't about how much money you have—it's about joining the mission."

Labor Economics: How Work Gets Valued

What is this?

The heart of our business model: fair pay for good work. In early phases without cash, we use Smartup Credits (SC)—a transparent, task-based currency that converts to euros when treasury allows.

The SC System: Work = Value

At the core of our economy lies a simple principle: you earn by doing, not by being.

  • Core SC Principles --- 1 SC = 1 EUR claim on treasury
    Earning: Only through completed tasks
    Transparency: Public ledger.log file
    No inflation: 3x treasury cap
    Fair redemption: FIFO when cash arrives

  • The 90/10 Split --- Attacker (Senior): 90% of task bounty
    Defender (Junior): 10% of task bounty
    Why it works:

    • Seniors incentivized to mentor
    • Juniors paid to learn
    • Quality assurance built-in

SC in Practice

Task: "Implement mesh networking protocol"
Bounty: 2000 SC (pre-assigned, visible to all)
Senior Dev (Attacker): Claims task, implements solution → 1800 SC
Junior Dev (Defender): Reviews, learns, documents → 200 SC
Result: Feature built, knowledge transferred, both paid fairly

How SC Flows Through the System

flowchart TD
    T[Task Created<br/>2000 SC bounty] 
    W[Worker Claims<br/>Becomes Attacker]
    A[Assistant Joins<br/>Becomes Defender]
    C[Work Completed<br/>Captain Approves]
    L[Ledger Updated<br/>SC Minted]
    H{Hold or Cash?}

    T --> W
    W --> A
    A --> C
    C --> L
    L --> H

    H -->|Hold SC| F[Future Value<br/>As Treasury Grows]
    H -->|Cash Out| R[Redemption Window<br/>FIFO Order]

Treasury Management

The 3x Rule

Outstanding SC can never exceed 3x cash treasury

Treasury: €10,000 → Max SC: 30,000
This prevents runaway inflation and maintains SC value

Redemption Windows work like this:
1. Funding arrives (crowdfunding/grants)
2. Ops team calculates available redemption
3. FIFO order - earliest contributors cash out first
4. Ledger burns - SC removed, EUR transferred
5. Public record - everyone sees the process

The Hold Incentive

Month 1: Treasury €10k, Outstanding SC 50k = 20% redemption value
Month 12: Treasury €200k, Outstanding SC 150k = 100%+ redemption value

Early contributors who believe in collective success benefit most. But no one is forced to hold—cash out anytime redemption windows open.

Why This Works

  • Fair Exchange --- No working for "exposure"
    No equity promises
    Clear value for clear work
    Transparent to everyone

  • Protected Value --- Can't print unlimited SC
    Can't favor friends
    Can't hide transactions
    Can't change history

  • Aligned Incentives --- Work more = earn more
    Help others = get 10%
    Build value = SC appreciates
    Stay active = stay earning

No Hidden Bonuses

"The entire ledger lives in public view. Every SC minted, every redemption, every team budget—transparent to all owners. When the CEO of a traditional company gets a €10M bonus while laying off workers, that's the system we're replacing."

Social Capital: The SK System

What is this?

Money isn't the only currency that matters. Smartup Karma (SK) recognizes contributions that SC can't measure—the teammate who debugs at midnight, the member who mediates conflicts, the captain who builds team morale.

SK: Recognition Beyond Money

While SC rewards task completion, SK captures the intangible value that makes communities thrive.

  • How SK is Earned --- Quality defender feedback: +5-10 SK
    Successful proposals: +20 SK
    Mentoring juniors: +5 SK/week
    Team captain service: +10 SK/month
    Mission completion: +15 SK
    Conflict resolution: +10 SK

  • What SK Unlocks --- 50 SK: Propose in General Forum
    100 SK: Apply for Team Captain
    200 SK: Lead Missions
    500 SK: Join Leadership Team
    Vote weight: Max 1.5x at 500+ SK

  • SK Decay Mechanism --- 10% monthly decay

    • Prevents founder privilege
    • Rewards active contribution
    • Makes room for new leaders
    • Keeps influence current
      Stay active or fade away

SK Cannot Be Gamed

Can't buy it: No amount of money gets you SK
Can't transfer it: Your reputation is yours alone
Can't hoard it: Use it or lose it to decay
Can't fake it: Earned through peer recognition

The Dual Currency Dynamic

graph TD
    HSL[High SC, Low SK<br/>Great Individual Worker<br/>Limited Influence<br/>Needs more community engagement]

    LSH[Low SC, High SK<br/>Community Pillar<br/>Trusted Voice<br/>Consider taking more tasks]

    HSH[High SC, High SK<br/>Natural Leader<br/>Productive + Connected<br/>Ready for Leadership Team]

    LSL[Low SC, Low SK<br/>New Member<br/>Learning Phase<br/>Pick a path to contribute]

    HSL --> HSH
    LSH --> HSH
    LSL --> HSL
    LSL --> LSH

SK in Action

Maria spends her evening:
- Helps debug junior's code (not her task) → +5 SK
- Mediates team conflict in public channel → +10 SK
- Provides excellent defender feedback → +8 SK
- Monthly captain duties → +10 SK
Total: +33 SK for community building (0 SC earned)

Her high SK opens leadership opportunities and increases her voting weight, recognizing that building community is as valuable as building code.

Why Dual Currency Works

Solving the Recognition Problem

Traditional organizations:
- Only pay for direct output
- Community building goes unrewarded
- Soft skills undervalued
- Politics determine influence

Smartup approach:
- SC rewards direct work
- SK rewards community value
- Both needed for full participation
- Merit determines influence

Beyond Individual Gain

"In Silicon Valley, they optimize for 'unicorns'—billion-dollar individuals. We optimize for collective intelligence. SK ensures those who make everyone better get recognized, not just those who code fastest."

Business Operations

What is this?

How money flows in, how it's allocated, and why our operational model creates competitive advantages over traditional tech companies—all while staying true to SDG missions.

Financial Flows

Money enters through three clean channels:

  • Crowdfunding Rounds --- Each phase opens new funding
    Community-driven campaigns
    Transparent goals and usage
    Creates urgency through phases
    Builds momentum naturally

  • Organizational Licenses --- €5000+ institutional support
    Universities, NGOs, ethical business
    Simplified grant administration
    Strategic partnerships
    Stable funding base

  • Research Grants --- SDG-aligned funding
    No strings attached
    Project-based support
    Public good emphasis
    Mission preservation

What We Don't Take

No venture capital - Avoids exit pressure
No corporate investment - Prevents mission drift
No hidden funding - Everything transparent

This isn't ideological purity—it's practical. The moment we take traditional investment, incentives distort toward profit extraction rather than SDG impact.

Budget Allocation Process

flowchart LR
    TC[Team Captains<br/>Prepare Requests] --> LT[Leadership Team<br/>Monthly Meeting]
    LT --> P[Public Proposal<br/>With Rationale]
    P --> GF[General Forum<br/>Reviews & Votes]
    GF --> A[Approved Budget<br/>Allocated to Teams]
    A --> E[Execution<br/>Public Spending]
    E --> R[Report Back<br/>To General Forum]

Monthly Budget Meeting

Dev Team Captain: "We need 5000 SC for mesh protocol development"
Design Team Captain: "We need 3000 SC for UI/UX research"
Business Team Captain: "We need 2000 SC for market analysis"

Leadership Team compiles requests, checks against treasury
General Forum sees all requests, debates priorities
Vote determines final allocation
Result: Everyone knows why money goes where

Competitive Advantages

Why We Win Against Traditional Tech


🌍 Global 24/7 Operations
Berlin developer → Bangkok designer → São Paulo tester
The work never stops, following the sun

💰 Zero Office Overhead
No Silicon Valley rents or corporate campuses
Every euro goes to actual work

🎯 Intrinsic Motivation
People choose us for mission, not just money
Passion translates to quality

📚 Learning-While-Earning
Every senior task trains a junior
Building tomorrow's experts today

🔍 Radical Transparency
No office politics or hidden agendas
Energy goes to building, not navigating

Phase-Based Funding Reality

Phase Typical Need Purpose Success Metrics
Validation €50k Prove concept viable Community size, initial prototype
Design €200k Create architecture Complete blueprints, team formation
Production €500k Build the product Working MVP, user testing
Organization €1M Market preparation Launch-ready product, exec team

Flexible by Design

These aren't fixed—each Smartup's Leadership Team proposes budgets based on real needs. Building emergency communication needs different resources than water purification. The General Forum approves based on transparent justification.

Treasury Transparency

Every owner can see in real-time:
- Total funds in Open Collective
- Outstanding SC liabilities
- Team budget allocations
- Individual task payments
- Redemption window status

Trust Through Transparency

"In traditional startups, employees discover the burn rate when layoffs hit. In a Smartup, every citizen watches the treasury like it's their own bank account—because it is."