The Continuous Organization model has been gaining strong interest in the crypto community lately. It allows organizations to set themselves in continuous fundraising mode while benefiting from solid and flexible community incentivization mechanisms.
Thibauld Favre (https://twitter.com/thibauld), who invented the Continuous Organization model, presents what Continuous Organizations are in detail and why they are a better way to raise funds than an ICO (or a traditional fundraising for that matter).
You can learn event more about the Continuous Organization model in this Medium article: https://medium.com/@thibauld/introducing-continuous-organizations-22ad9d1f63b7 :)
13. The big problem: LIQUIDITY
How to turn this: ...into this?
😢 💩
.
💰
14. Without liquidity...
*
+
)Entrepreneurs can lose
everything until the last
minute
Investors need
disproportionate
governance rights
Employees get worthless
Stock Options
😢 💩
.So when bad news start coming...
15. The fragile alignment of interests evaporates
💩 💀 💩 💀 💩 💀 💩 💀 💩 💀 💩 💀
*
Entrepreneur:
! Focus on minimizing
downside vs maximizing
upside
Employee:
! Loses motivation
! Leaves company
Investor:
! Uses is governance rights
against founders
OR
! Writes off investment and
move on
)
/
+👇
16. ...and very often the startup death follows
💩 💀 💩 💀 💩 💀 💩 💀 💩 💀 💩 💀
*
💀
“Within 3 years, 92% of startups failed.”
Source: Startup Genome
23. Continuous Organization - Definition
A Continuous Organization is an organization that sets up a Decentralized
Autonomous Trust (DAT) and gives it value by funneling part or all of its present or
future cash-flows to it.
The DAT is a specific immutable smart-contract that implements a bonding curve
contract to automatically mint, burn and distribute fully digital security tokens (FAIRs)
that represent a claim on the future cash-flows handled by the DAT.
24. Interests are aligned using company’s shares
*
+
),
buy price function
sell price function
# tokens (supply)
Price
🧔
📄Bonding Curve
Contract
Organization
Community Investors Customers
Buy-back
reserve
Beneficiary
0 ETH
Treasury
100 ETH
Tokens
0 TOKEN
25. Initializing The Bonding Curve
*
+
),
sell price function
# tokens (supply)
Price
🧔
📄Bonding Curve
Contract
Organization
Community Investors Customers
Buy-back
reserve
(empty)
Beneficiary
100 ETH
50 TOKENS
90 ETH
buy price function
10 ETH
90 ETH
50 TOKENS
Tokens
Treasury
26. Buying Tokens
*
+
),
sell price function
# tokens (supply)
Price
🧔
📄Bonding Curve
Contract
Organization
Community Investors Customers
Buy-back
reserve
Beneficiary90 ETH
buy price function
100 ETH
30 TOKENS
180 ETH
50 TOKENS
Tokens
Treasury
20 ETH
27. Incentivizing Community
*
+
),
sell price function
# tokens (supply)
Price
🧔
📄Bonding Curve
Contract
Organization
Community Investors Customers
Buy-back
reserve
Beneficiary
buy price function
180 ETH
30 TOKENS
Tokens
Treasury
20 ETH
20 TOKENS
30 TOKENS
28. Selling Tokens
*
+
),
sell price function
# tokens (supply)
Price
🧔
📄Bonding Curve
Contract
Organization
Community Investors Customers
Buy-back
reserve
Beneficiary
buy price function
180 ETH
Tokens
Treasury
10 ETH
20 TOKENS
10 ETH
30 TOKENS
30 TOKENS
29. Purchasing a Product or Service
*
+
),
sell price function
# tokens (supply)
Price
🧔
Bonding Curve
Contract
Organization
Community Investors Customers
Buy-back
reserve
Beneficiary
buy price function
220 ETH
20 ETH
Tokens
Treasury
50 ETH
40 ETH
📄
35 TOKENS
5 TOKENS
35 TOKENS
5
TOKENS
30. Distributing “Dividends”
*
+
),
# tokens (supply)
Price
🧔
Bonding Curve
Contract
Organization
Community Investors Customers
Buy-back
reserve
Beneficiary
buy price function
120 ETH
120 ETH
Tokens
Treasury
📄
50 TOKENS
50 TOKENS
15
TO
KENS
100 ETH
sell price function
15 TOKENS
32. Continuous Organization - Next steps
Short term objectives:
1. 💾 Provide the community with a technical reference implementation
2. 9 Provide regulatory guidance to founders wanting to create Continuous
Organizations
3. 💰 Raise funds to develop the Continuous Organization ecosystem (no ICO)
4. 🔬 Strengthen and improve the theoretical foundation of Continuous
Organizations
5. , Foster the Continuous Organizations community worldwide
33. Continuous Organizations
Get the latest updates: https://c-org.co
Join the conversation: https://chat.c-org.co
Follow the memes: @ContinuousOrg