31 KiB
:material-cash-multiple: Smartup Business: Building a 24/7 SDG Enterprise
!!! info "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.
!!! tip "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.
!!! warning "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.
:material-license: Revenue Model: The Four License System
!!! info "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
-
:material-account-heart:{ .lg .middle } 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
- Access public information
-
:material-eye:{ .lg .middle } Watch License (€100+)
Full governance participation
- Access General Forum
- Vote on all decisions
- View all documentation
- Equal ownership share
Rights: Everything except task work
- Access General Forum
-
:material-hammer:{ .lg .middle } Work License (€200+)
Complete operational access
- Everything in Watch +
- Claim and complete tasks
- Earn SC through work
- Join teams and roles
Rights: Full citizenship
- Everything in Watch +
-
:material-office-building:{ .lg .middle } Organizational License (€5000+)
Institutional partnership
- One vote (maintains democracy)
- Designate one representative
- Use as training ground
- Simplified grant admin
Rights: Strategic partnership
- One vote (maintains democracy)
!!! example "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]
!!! tip "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
!!! quote "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."
:material-currency-eur: Labor Economics: How Work Gets Valued
!!! info "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.
-
:material-hand-coin:{ .lg .middle } 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 -
:material-percent:{ .lg .middle } 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
- Seniors incentivized to mentor
!!! example "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
See our up to date currency rules here :material-arrow-right:{ .md-button .md-button--primary }
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
!!! warning "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:
- Funding arrives (crowdfunding/grants)
- Leadership team calculates available redemption
- FIFO order - earliest contributors cash out first
- Ledger burns - SC removed, EUR transferred
- Public record - everyone sees the process
!!! tip "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
-
:material-scale-balance:{ .lg .middle } Fair Exchange
No working for "exposure"
No equity promises
Clear value for clear work
Transparent to everyone -
:material-shield-check:{ .lg .middle } Protected Value
Can't print unlimited SC
Can't favor friends
Can't hide transactions
Can't change history -
:material-rocket-launch:{ .lg .middle } Aligned Incentives
Work more = earn more
Help others = get 10%
Build value = SC appreciates
Stay active = stay earning
!!! quote "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."
!!! success "System Status: ✅ FULLY OPERATIONAL" Our dual-currency system is live and working! Complete transparency at timeline0.org/smartup-zero/financial-transparency with 153 SC outstanding, first task-based awards completed, and democratic founder accountability in action.
!!! success "✅ LIVE SYSTEM: Task-Based SC Awards Operational" Our first collaborative work session completed in August 2025: 153 SC awarded for building the effort-based task-SC integration system. Complete audit trail in our public ledger demonstrates the system works exactly as designed.
See our up to date currency rules here :material-arrow-right:{ .md-button .md-button--primary }
:material-meditation: Social Capital: The SK System
!!! info "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.
-
:material-heart-plus:{ .lg .middle } 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 -
:material-lock-open:{ .lg .middle } 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 -
:material-timer-sand:{ .lg .middle } 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
- Prevents founder privilege
!!! warning "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
!!! example "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
!!! tip "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
!!! quote "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."
:material-bank: Business Operations
!!! info "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:
-
:material-account-group:{ .lg .middle } Crowdfunding Rounds
Each phase opens new funding
Community-driven campaigns
Transparent goals and usage
Creates urgency through phases
Builds momentum naturally -
:material-office-building:{ .lg .middle } Organizational Licenses
€5000+ institutional support
Universities, NGOs, ethical business
Simplified grant administration
Strategic partnerships
Stable funding base -
:material-file-document:{ .lg .middle } Research Grants
SDG-aligned funding
No strings attached
Project-based support
Public good emphasis
Mission preservation
!!! warning "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]
!!! example "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
!!! tip "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 |
!!! note "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
!!! quote "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."
:material-account-multiple: From Smartup to Market: The Ownership Model
!!! info "What is this?" When a Smartup completes its four phases and launches a market entity, the Book of Owners becomes a shareholder registry. Every license holder gets an equal share—a bonus for taking the journey together.
The Equal Share Principle
Here's how ownership works in practice:
-
:material-book-open:{ .lg .middle } During Smartup Phase
Book of Owners tracks licenses
One license = One vote
Focus on building together
Earn SC through work
Create collective value -
:material-domain:{ .lg .middle } At Market Launch
Book → Shareholder registry
1000 owners = 1/1000 share each
Equal shares regardless of:- When you joined
- License type purchased
- SC earned
- When you joined
-
:material-cash:{ .lg .middle } After Market Entry
Business generates revenue
Profits distributed equally
Shares are nice bonus
Not why you joined
Reward for collective risk
!!! warning "Shares Are Not The Point"
We're clear about this: Join a Smartup to use your talent for SDG progress and earn fair pay through SC. The equal share is a bonus if we succeed together. If shares are your main motivation, this isn't for you.
The goal: Make people want to work to earn money, not put in money to earn money.
Natural Team Efficiency
The equal share model creates interesting dynamics:
graph LR
A[Need More Help?] --> B[Accept More Owners]
B --> C[Smaller Individual Shares]
D[Want Bigger Shares?] --> E[Keep Team Focused]
E --> F[Work More Efficiently]
G[Sweet Spot] --> H[Right-Sized Team]
H --> I[Quality Over Quantity]
style G fill:#8bc34a
style I fill:#8bc34a
This tension naturally prevents bloat. Teams find their optimal size—enough people to succeed, not so many that shares become meaningless.
The Continuing Relationship
!!! tip "Smartup Community as Strategic Asset" After market launch, the Smartup community doesn't disappear—it becomes a living resource for the business entity.
For the Business (e.g., ONLIFE Inc.):
- Talent Pipeline: Hire from people who built the product
- Beta Testing: Community knows the vision intimately
- Expert Network: Original builders retain deep knowledge
- Brand Advocates: Shareholders naturally promote success
For Community Members:
- First hiring priority: Job opportunities at the company
- Paid consulting: Testing and advisory contracts
- Continued involvement: Stay connected to "your baby"
- Shareholder returns: If profitable, receive dividends
!!! example "Living Ecosystem in Practice"
ONLIFE launches successfully
- Needs iOS developer → Hires from Smartup community first
- Testing new mesh protocol → Pays community members as testers
- Strategic decision needed → Consults original architects
- Growing to new markets → Community provides local insights
The Smartup community remains a competitive advantage, not abandoned infrastructure.
Realistic Expectations
Let's be concrete about potential returns:
| Scenario | Owners | Annual Profit | Per Person |
|---|---|---|---|
| Conservative | 500 | €500k | €1,000/year |
| Moderate | 500 | €2M | €4,000/year |
| Success | 500 | €5M | €10,000/year |
!!! note "It's About Impact, Not Riches"
These aren't life-changing amounts for individuals. But imagine:
- Contributing to multiple Smartups over time
- Building a portfolio of mission-driven work
- Earning fair SC wages during development
- Creating lasting SDG impact
The shares are acknowledgment of shared risk, not a get-rich scheme.
!!! quote "Collective Success" "We work 24/7 because the SDGs can't wait. We pay fairly because talent deserves reward. We share ownership because collective problems require collective solutions. But the real return on investment? It's measured in lives improved, not just euros earned."
:material-server: The Technical Stack: Tools for Collective Intelligence
!!! info "What is this?" A Smartup's technical infrastructure embodies our values: decentralized, open source, sovereignty-preserving. We chose European-based tools that give us independence from Silicon Valley's surveillance capitalism while enabling true collective work.
Why Tool Choice Matters
When we observe the current technical landscape, we see tools designed to extract value, not create it collectively. Silicon Valley platforms lock in users, harvest data, and change terms at will. We need infrastructure that serves our mission, not shareholders.
!!! warning "The Sovereignty Imperative" Given emerging geopolitical realities, we can't build critical infrastructure on platforms that could be weaponized or withdrawn. European-based, open-source tools give us the autonomy we need.
Our Technical Philosophy
-
:material-lock-open:{ .lg .middle } Open Source Everything
No vendor lock-in
Community maintained
Fully auditable
Fork if needed
True ownership -
:material-earth-box:{ .lg .middle } European Sovereignty
GDPR compliance built-in
No NSA backdoors
Democratic values
Stable governance
Long-term thinking -
:material-puzzle:{ .lg .middle } Integrated Ecosystem
Tools talk to each other
Single identity system
Bots handle integration
Humans stay focused
Collective intelligence
The Core Stack
:material-chat: Element/Matrix - Communication & Command Centre
What it is: Decentralized, encrypted, real-time communication
Why it matters: Non-coders never need to leave Element—everything happens here
How we use it: All 6 groups live here, bots bring external data inline
!!! tip "The Digital Workspace"
Unlike Slack (US-controlled, data-mining) or Discord (gamer-focused), Matrix gives us:
- Full data sovereignty
- Federation capability
- End-to-end encryption
- Self-hosted control
- Bot-friendly architecture
:material-git: Forgejo - The Mint & Development Hub
What it is: Community-driven Git forge (ethical fork of Gitea)
Why it matters: Source of truth for code, docs, and the SC ledger
How we use it: Issues become tasks, repos hold everything, CI/CD automates
!!! example "Forgejo in Action"
- Code repos: Every line transparent
- Issue tracking: Tasks with SC bounties
- Kanban boards: Visual workflow
- The Ledger: ledger.log tracks all SC
- CI/CD: Automated testing and deployment
:material-robot: Engelbot - The Ultimate Midfielder
What it is: Our custom bot honoring Douglas Engelbart
Why it matters: Automates the ADM triangle's midfielder role
How we use it: Bridges tools, documents decisions, enables workflows
graph LR
M[Matrix/Element] <--> E[Engelbot]
F[Forgejo] <--> E
O[Open Collective] <--> E
L[Ledger] <--> E
E --> A[Automates Admin]
E --> D[Documents Everything]
E --> C[Coordinates Groups]
!!! quote "Why 'Engelbot'?" "The real power of technology comes from augmenting human intelligence, not replacing it. Engelbot handles the boring stuff so humans can focus on what matters."
Infrastructure Layers
Layer 1: Source of Truth
- Forgejo on Fly.io: Git repos, issues, CI/CD
- Persistent volumes: Data sovereignty
- Nightly backups: Infomaniak (Switzerland)
Layer 2: Development
- Gitpod: Cloud workspaces, no local setup needed
- 50h/month free: Accessible to all contributors
- Standardized environments: Everyone builds the same way
Layer 3: Production
- Fly.io: Current hosting (EU regions)
- Future: EU-only VPS for full sovereignty
- Clever Cloud: Stateless services, EU-based
Layer 4: Automation
- Engelbot: Connects everything
- CI/CD pipelines: Automated deployment
- Health monitoring: Proactive maintenance
Financial Infrastructure
:material-currency-eur: Open Collective EU
What it is: Transparent fiscal hosting
Why it matters: Every euro in/out is public
How we use it: Crowdfunding intake, SC redemption
!!! tip "Full Financial Transparency"
Unlike traditional banking:
- Real-time balance visible
- Every transaction public
- Direct SC → EUR conversion
- No hidden fees or flows
Security & Resilience
-
:material-backup-restore:{ .lg .middle } Backup Strategy
Nightly to Swiss storage
Encrypted at rest
Geographic distribution
Tested restore process -
:material-shield-check:{ .lg .middle } Access Control
Matrix identity = single source
Role-based permissions
No shared passwords
Full audit trails -
:material-monitor-heart:{ .lg .middle } Monitoring
Health checks built-in
Loki/Grafana planned
Proactive alerts
Public status page
Why This Stack Works for Smartups
!!! success "Aligned with Our Values"
Collective Ownership: Every tool is open source, forkable
Collective Craftsmanship: Integrated workflows, no silos
Collective Governance: Everything auditable, transparent
Military Execution: Automated pipelines, clear processes
The tools don't just support our work—they embody our principles. When a new contributor joins, they enter an ecosystem designed for collaboration, not extraction.
!!! warning "Still Evolving" We're starting with proven tools and will migrate to full EU sovereignty as we grow. Every technical decision is documented, debated in public, and aligned with our mission.
:material-layers-triple: Smartup Administration Index
!!! info "What is this?"
The Smartup Administration Index is our unified, semantic numbering convention.
It assigns every governance channel, team, role, objective, and task a clear, machine-readable identifier—ensuring transparency, accountability, and automation across Forgejo, Element, and Engelbot.
Purpose
- 🎯 Clarity: Instantly locate any process or discussion
- 🤖 Automation-Ready: Bots can parse, filter, and trigger workflows
- 🔄 Consistency: Uniform identifiers in Matrix/Element, Forgejo, and docs
- 🧾 Auditability: Every event logged with a traceable ID
🔢 Numbering Layers (1–6)
| Prefix | Layer | Description | Example Identifier |
|---|---|---|---|
| 1_ | General Forum | Public governance, debate & voting (Element room) | 1_general_forum |
| 2_ | Workplace | Coordination hub for all Workers & PLT (Element room) | 2_workplace |
| 3_ | Teams | Skill-based groups (each team gets an index) | 3_4 (Team #4) |
| 4_ | Roles | Contributor roles within a team | 4_1_4 (Role #1 in Team 4) |
| 5_ | Objectives | Project boards / OKRs (main & sub-objectives) | 5_2 (Obj #2) / 5_3_4 (Sub-Obj 3 of Obj 4) |
| 6_ | Tasks | Individual work units | 6_2_3_4 (Task #2 of Sub-Obj 3 of Obj 4) |
:material-clipboard-list: Examples in Practice
| Concept | Identifier | Human-Readable Name | Notes |
|---|---|---|---|
| Forum | 1_general_forum |
#1_general_forum (Element) | All-owner discussions & votes |
| Workplace | 2_workplace |
#2_workplace (Element) | Cross-team coordination & PLT planning |
| Team | 3_4 |
#3_4_business (Element/Git) | Business Team |
| Role | 4_1_4 |
4_1_4_marketing_lead |
Marketing Lead role in Business Team |
| Objective | 5_2 |
5_2_onlife-mvp |
ONLIFE MVP Phase |
| Sub-Obj | 5_3_4 |
5_3_4_ui-refinement |
3rd sub-objective under Obj 4 |
| Task | 6_2_3_4 |
6_2_3_4_design-login-screen |
2nd task under Sub-Obj 3 of Obj 4 |
✅ Why This Works
| Benefit | Explanation |
|---|---|
| 🧭 Clarity | Semantic IDs show layer, parent context, and sequence at a glance |
| 🔄 Consistency | One simple rule everywhere—no special cases |
| 🤖 Automation-Ready | Engelbot/CI parse prefixes to route notifications, trigger bots, filter logs |
| 🧾 Auditability | Every issue, vote, and task references a stable ID for full traceability |
Use these identifiers:
- In Element room names (
#3_4,#2_workplace, etc.) - As Forgejo issue/project prefixes (
6_2_3_4_task-title) - In docs and bots for filtering and linking
With a single, right-to-left numbering scheme, our Smartup remains organized, transparent, and ready for scale.
:material-arrow-right-bold: Continue to Live Experiment Status{ .md-button .md-button--primary }
--8<-- "_snippets/join-cta.md"