Creative Commons (BY NC CA) licence granted by the authors. First published on Sept 15, 2012

Last Modified on August 18, 2014. Please keep us updated if you adopt this model and make improvements.

By Tiberius Brastaviceanu, Bayle add your name here

Only SENSORICA logo is copyright. Content on this document is Creative Commons (BY NC CA)

Contribution Acknowledgement

and Agreement

(the cash infusion case)

Under construction...

this is only a draft that must be translated into legal language

If you contribute to this doc make sure you respect the Content rules


SENSORICA is an OVN


Definitions

ACKNOWLEDGEMENT procedure

Channel

Content

TEMPLATE (draft)

AGREEMENT

Purpose

Procedure

TEMPLATE (draft)

History

This is an acknowledgement of someone’s donation or investment, a cash infusion in this case, AND an agreement of how this cash will be used.  

Definitions

Investment: deployment of some type of resource with the expectation of some future tangible returns associated directly with this resource..

Donation: deployment of some type of resource with or without any expectation of future tangible rewards associated directly to these resources.  

Recipient: is the member/affiliate of the value network who receives the investment, the cash in this case, and promises to use it in the proper way, which is defined in the Agreement.

Investor: a member/affiliate who makes an investment, the cash infusion in this case. If a nonmember makes an investment he/she/it automatically becomes a member.

Donor: a member or nonmember who makes a donation

add more

ACKNOWLEDGEMENT procedure

The purpose of this process is to establish objectively that a contribution event has taken place, a cash infusion in this particular case.

the acknowledgement must establish that

  1. a cash transfer has occurred between a sender and a receiver AND
  2. the intention of the sender is to make a cash infusion, which qualifies the sender either as
  1. a donor or
  2. an investor, which also requires the adherence of the sender to the value accounting system
  1. the receiver is aware of the sender’s intention to use this cash as
  1. a donation or
  2. an investment, which calls for an agreement to be signed by the receiver and other active members/affiliates, establishing the receiver as a recipient.

NOTE: Qualifying the sender as an investor requires the sender’s adherence to the value accounting system, which establishes the connection between this investment event and future rewards, clearly stating that the sender understands the value accounting system and its future consequences regarding his investment. The value accounting system is in evolution. The agreement refers to the value accounting system at the time when the agreement is instituted, and allows this contribution to be treated for future projects, using the value accounting system  used at that time. The value accounting system evolves as a consensus of the entire community. Changes to the value accounting system are decided ONLY through a democratic process.  

NOTE: Someone (member or nonmember of the value network) can make a donation without any expectation of future rewards. In this case the sender is a donor. The donor is not obliged to adhere to the value accounting system. A donation is not an investment. A donor must sign an agreement. The donor has the choice to delegate the decision about how the donation(s) are to be used, or to guide the use.  

Channel

The process of acknowledging someone’s contribution, in this case a cash infusion, is open and transparent to all members of the value network. The acknowledgement must be communicated through an established channel of communication that is accessible to all members/affiliates of the value network, with no barriers/restrictions. This channel can be a special channel serving this purpose, or another channel. The communication channel must be such that content vehiculated through it is acceptable as proof in a court of law. For example, a Google Group can serve this purpose, because the data is stored by a third party, Google in this case, can be retrieved at a future time, and cannot be manipulated by the members of the value network. Other systems can also be used. P2P systems are preferable.

Content

One member/affiliate of the value network initiates the acknowledgement process by sending a message describing the situations in the greatest detail. This should

  1. include the date,
  2. include the identity of the sender,
  3. establish that the sender is
  1. a donor by stating the sender's intent to make a donation
  2. an investor, by stating the sender's intent to make an investment (a cash infusion in this case), and pointing to the agreement, which must establish the sender’s adherence to the value accounting system.
  1. include the identity of the receiver and establishing that the receiver is a recipient, by stating the receiver’s awareness of the sender’s intent to make a donation or an investment (a cash infusion in this case),
  2. objectively establish that the transfer has taken place from the donor/investor to the recipient.
  3. point to the agreement.

Other members that are able to verify the facts MUST reply by acknowledging the facts, explicitly stating that the facts have been verified.

  1. that the transfer has taken place,
  2. that the sender is either a donor or an investor,
  3. that the receiver is a recipient.

If possible and/or necessary a proof is given (ex. sharing a bank receipt, etc.). Other members can also acknowledge the event. Not all members must acknowledge the event.

 

TEMPLATE (draft)

write text here...

AGREEMENT

Purpose

The agreement establishes how the contribution should be treated/used. The process of resource allocation in a value network is bottom up, i.e. donors or active members/affiliates decide how their resources are to be allocated, used. This means that the donor or investor is the one who decides in which project to allocate the resources, and to what purpose.

NOTE: resources are deployed ONLY if their effect is constructive, they cannot be deployed to stop an initiative, to slow down a project, to destroy other resources, etc.

The agreement should contain

  1. the donor or investor’s final decision of the allocation of the ressource, in this case the cash, details about the allocation target(s), time considerations, modalities, etc.
  1. the donor or the investor can also delegate the decision for allocation to any other active member/affiliate of the value network.
  1. the donor’s or investor’s statement that the investment is not intended to destructive purposes, to the best knowledge of the donor/investor,
  2. the recipient’s statement that he/she/it will respect the donor’s or investor’s final decision of the allocation of the resource, within the boundaries of the possible, to the best of his/her/its ability. If this decision of delegated to another active member/affiliate this member/affiliate must commit to respect the donor’s or investor’s final decision of the allocation of the resource, within the boundaries of the possible, to the best of his/her/its ability.
  3. The investor’s adherence to the value accounting system, which establishes the connection between this investment event and future rewards, clearly stating that the investor understands the value accounting system and its consequences regarding his investment. The donor is not obliged to adhere to the value accounting system.

NOTE: The value accounting system is in evolution. The agreement refers to the value accounting system at the time when the agreement is instituted, and allows this contribution to be treated for future projects, using the value accounting system used at that time.

The value accounting system evolves as a consensus of the entire community. Changes to the value accounting system are decided ONLY through a democratic process.  

Procedure

The agreement must be signed by the investor, the recipient and by other members. Not all members need to sign. It can be on physical support (paper) or electronic. The recipient can be the custodian.

TEMPLATE (draft)

enter text here... get some inspiration from our first precedent of cash infusion, see History below

History

This is based on a case of cash infusion by Bayle on Aug 13, 2012, see official message (only SENSORICA members have access to this message, in our mailing list)

Kurt proposed

Sensorica should become a UK llp with a partnership agreement that contains the value equation and reference to other legal structures - along with this the is a SENSORICA holdings corp in each relevant jurisdiction (where physical property resides) and a board that manages said property on behalf of the value network.  The final piece is a trust whose board is made up of members of the value network.  The nondominium agreement applies to all property held by the holding company and binds the trust.  This agreement, unlike open source approaches says in effect that no one has exclusive control ownership rights but everyone who is a signatory to the SENSORICA partnership agreement and nondominium agreement has equal access to the assets in the holding corp but agrees to compensate the value network for their use according to the value equation.  (Beneficial ownership is driven by the value equation) [See Ishan’s work]