A new technical subsyem

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."

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."

From Smartup to Market: The Ownership Model¶

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.

Here's how ownership works in practice:

During Smartup Phase --- Book of Owners tracks licenses
One license = One vote
Focus on building together
Earn SC through work
Create collective value
At Market Launch --- Book → Shareholder registry
1000 owners = 1/1000 share each
Equal shares regardless of:
- When you joined
- License type purchased
- SC earned
After Market Entry --- Business generates revenue
Profits distributed equally
Shares are nice bonus
Not why you joined
Reward for collective risk

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¶

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

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

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.

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."

The Technical Stack: Tools for Collective Intelligence¶

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.

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¶

Open Source Everything --- No vendor lock-in
Community maintained
Fully auditable
Fork if needed
True ownership
European Sovereignty --- GDPR compliance built-in
No NSA backdoors
Democratic values
Stable governance
Long-term thinking
Integrated Ecosystem --- Tools talk to each other
Single identity system
Bots handle integration
Humans stay focused
Collective intelligence

The Core Stack¶

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

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

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

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

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]

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¶

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

Full Financial Transparency

Unlike traditional banking:
- Real-time balance visible
- Every transaction public
- Direct SC → EUR conversion
- No hidden fees or flows

Security & Resilience¶

Backup Strategy --- Nightly to Swiss storage
Encrypted at rest
Geographic distribution
Tested restore process
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¶

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.

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.

Smartup Administration Index¶

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)

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.

Continue to Live Experiment Status

Ready to Contribute?¶

Join the Project

Become a Smartup Zero owner

Join via Open Collective

Start Discussing

Connect with the community

Enter Matrix Space

Start Building

Pick up your first task

Browse Open Tasks

A new technical subsyem

Smartup Business: Building a 24/7 SDG Enterprise¶

The Business Reality¶

Revenue Model: The Four License System¶

The License Structure¶

Price Progression Through Phases¶

Labor Economics: How Work Gets Valued¶

The SC System: Work = Value¶

How SC Flows Through the System¶

Treasury Management¶

Why This Works¶

Social Capital: The SK System¶

SK: Recognition Beyond Money¶

The Dual Currency Dynamic¶

Why Dual Currency Works¶

Business Operations¶

Financial Flows¶

Budget Allocation Process¶

Competitive Advantages¶

Phase-Based Funding Reality¶

Treasury Transparency¶

From Smartup to Market: The Ownership Model¶

The Equal Share Principle¶

Natural Team Efficiency¶

The Continuing Relationship¶

Realistic Expectations¶

The Technical Stack: Tools for Collective Intelligence¶

Why Tool Choice Matters¶

Our Technical Philosophy¶

The Core Stack¶

Element/Matrix - Communication & Command Centre¶

Forgejo - The Mint & Development Hub¶

Engelbot - The Ultimate Midfielder¶

Infrastructure Layers¶

Layer 1: Source of Truth¶

Layer 2: Development¶

Layer 3: Production¶

Layer 4: Automation¶

Financial Infrastructure¶

Open Collective EU¶

Security & Resilience¶

Why This Stack Works for Smartups¶

Smartup Administration Index¶

🔢 Numbering Layers (1–6)¶

Examples in Practice¶

✅ Why This Works¶

Ready to Contribute?¶