Profit Sharing Communities.


Your work, on your terms, with better financial upside.

Profit Sharing Communities (PSCs) empower founders, contributors, and users, while offering a better experience on the web. Think of PSCs as open-source “companies” that pay out an immediate dividend on profits. Contribute when you want and for however long you want.

For founders, it means a focus on product over fundraising, and no more sacrificing ownership for capital.

For contributors, it means no bosses, no contracts. Work on what you care about and accumulate revenue generating ownership immediately.

Arweave changes the incentives to empower creative and technical innovators.

Build a better web

The Web 2.0 model is broken. As traditional software companies scale in usage, the cost is passed onto developers. Profit sharing communities flip that model while sparing users from invasive advertising and the risk of compromised private data. Today we can build the web we always wanted.

Empowering Ownership

  • You decide how much ownership you're willing to cede in exchange for meaningful contributions.
  • Directly own and control the applications you contribute to.

Better Governance

  • Contributors with high convictions can leverage both the size and duration of their token holdings.
  • Affect the Community’s direction by owning more tokens or holding for a longer period of time.

Fewer Barriers

  • Spend your time however you want and contribute to the projects of your choice. Own a piece of all your work across few or many projects.
  • No more waiting on liquidity events for payout on your ownership share. Earn real time ownership akin to a dividend.
  • Access liquidity through an active token market.
  • Contributing developers can build in any language and tool stack they prefer.

Consumer Friendly

  • Build with an ethically aligned revenue model. User activity is not sold, so there’s no exploitation of user data. No trackers and no onslaught of web ads.
  • The optimal feedback loop -- application experiences and improvements are governed by token holding contributors or users themselves who can purchase tokens.

Generating income with Profit Sharing Tokens (PSTs)

User interactions with Arweave permaweb applications require a nominal spend of AR tokens, the native currency for all Arweave applications. That spend includes a miner fee, endowment fee, and a tip. While the first two power the broader ecosystem, the tip provides a revenue stream for Community Founders and Contributors in the form of Profit Sharing Tokens.

As a PST holder you have two ways to access liquidity:

  • Earn recurring revenue by getting paid dividends on your tokens (proportional to app usage).
  • Sell some share of your PSTs at any time on the open market. There’s no need to wait for an acquisition or IPO.

Community building blocks

Founding a Community

  • Founders mint some amount of PSTs (e.g. 1mm) and split ownership among founders (e.g. 50/50). This means each founder will earn 50% of tip revenue as PSTs accumulate value.
  • Build an application on the Arweave.
  • Initial usage and adoption begins to generate tips, or Founders can farm work out to Contributors.

Contributing to a Community

  • Founders mint additional PSTs to improve or scale the application with help from Contributors.
  • Example contributions could be front-end UI improvements, back-end development, marketing, etc.
  • Anyone can be a Contributor for a Profit Sharing Community and earn PSTs, so long as their contribution is approved through governance.
  • Contributors have far more autonomy than a traditional “employee”. They can own a significant percentage of the Community and have meaningful influence through governance.

Governing a Community

  • Upgrades to the application can be posted to a job board or proposed by existing or new Contributors.
  • These upgrades from Contributors are voted on by the community of PST holders.
  • Voting power is balanced through a function of your ownership share, as well as how long you hold PSTs.

Resources

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