Q1 2021 Update: Welcome! Since the initial release in October 2020, we’ve updated the $WORK Rewards specification to include token names, improved token economics, and clarification of frequently asked questions. We’ve also made the information easier to use. Happy reading!
The $WORK Rewards (“$WORK”) of the Hiring Commons coordinates financial incentives among Commons members to support the future of independent and autonomous workers. There are two types of members in the Commons; Employees and Affiliates.
Employee members are independent workers who actively collaborate through the Commons ecosystem
Affiliate members provide new member referrals, technology and/or services to Commons
Affiliates must refer at least one person per year to become an employee member to maintain active status
Initially, employee membership is limited to those eligible to work in the United States
Commons expects to eventually be able to complete its expansion globally
All U.S. and international individuals, organizations and DAOs are eligible for affiliate membership
As discussed in Opolis’ white paper, Commons’ economic model considers stakeholder capitalism in a collectively owned, purpose- (and profit-) oriented digital employment cooperative. $WORK is designed to reward cooperative sponsorship with tokens designed to incentivize stakeholders to participate in certain sponsored activities that Commons deems valuable. The $WORK token is a unit of account that can be used to determine the amount of sponsorship profits a member receives when they themselves claim or when Commons declares that they are entitled to receive sponsorship profits.
Functionally, Commons gives employee members several rights.
-Receive the benefits of group purchasing power (group purchasing power is the ability of a group of consumers to take advantage of group size in exchange for discounts) to reduce the cost of products and services, such as: group health insurance, technology tools and shared services
- Share profits with other stakeholders based on sponsorship (patronage)
- Become an “owner” of a shared network that protects the best interests of its members
- Participate in the governance of Commons
Members receive $WORK sponsorship in the Commons ecosystem by
- using Commons to process payroll, employment benefits and shared services as an employee member
- directly referring new employees
- earning rewards by staking $WORK
- using Commons’ trustee, Opolis, as a team member, contributor, advisor or shareholder.
In the Genesis allocation of $WORK, Commons will allocate $WORK according to the allocation approved by the Management Board, which is described in the “Token Economics” section of this document. Neither $WORK will be sold to the public nor to investors. The only way to receive tokens is to participate in one or more of the activities listed above.
Initially, final governance decisions will be made exclusively by a management committee (“Stewards”) of up to 9 employee members (initially 7). Once 1,000 employee members join Commons, governance will begin to transition to the employee members, but the Management Board will retain some limited governance authority. The lack of governance authority for Affiliates aligns incentives for Employee Members with benevolence for Employee Members. To ensure alignment with the community, beginning at the end of the second quarter of 2021, Commons will apply Snapshot to indicate employee members’ preferences for governance proposals.
By pledging to $WORK, both membership types will receive a pledge bonus (additional $WORK), and employee members will also receive greater voting weight, with the enhanced vote exceeding the single vote given to all employee members at the time of joining.
$WORK has its legal basis as a utility token under the Colorado Digital Token Act of 2019, and as a utility token under Article 7, Section 101 of the C.R.S., Article 55, in conjunction with the Colorado Uniform Limited Cooperative Association Act (“ULCAA”), which is based on the primary attributes of a cooperative It is used to define the unit of account for membership sponsorship based on the primary attributes of a cooperative.
The governance and economic rights of $WORK apply only to holders who are also members of the Commons. In other words, all rights and property of $WORK are unlocked based on membership in the Commons, not just ownership of $WORK tokens.
Members will be rewarded with $WORK for certain sponsored activities that are considered to create value for Commons (spending, referrals, pledges as part of a process called payroll mining).
$WORK is an Ether-based ERC20 token.
$WORK will not be sold to the public or investors. Therefore, Commons will not determine the implied price or value of the tokens. Tokens will only be distributed as rewards for Commons member sponsorship.
There is no cap on the total amount of $WORK that can be minted and distributed. However, as Commons grows, the distribution of new $WORKs will decrease because the distribution of new $WORKs will be based on the difficulty of the growth percentage milestone, which is obviously increasing. $WORKs will only be minted and distributed when growth milestones are reached.
There is no cap on the total amount of sponsorship that any one member can receive.
At launch, Commons will mint and distribute $315,000,000 in $WORK to Commons stakeholders.
20% of the Genesis distribution will be distributed immediately, with the exception of the Retroactive and Affiliate Awards (which are explained in the “Community” section of this document), which are 100% distributed. The remainder of the allocation will be paid out over a period of 4 years. The $WORK awarded will be streamed to stakeholders in real time via SuperFluid. The payout schedule is shown below.
The vested liquid supply after Genesis distributions is $2,708 million, or 8.6%. However, vested $WORK held in Commons’ treasury or in trustees is not included in the vested liquid supply.
52.38% of the Genesis allocation, or $165,000,000 WORK, is allocated to Communities. The allocation is as follows
Commons Treasury: $143,300,000 $WORK. (20% distribution) $WORK held by Commons Community Treasury All $WORK held by the Community Treasury is held in a multi-signature secure wallet controlled by the Administrator.
Administrators and Key Contributors: $6,700,000 $WORK. (20% disbursement) Administrators and Key Contributors will receive 4.46% of the Commons Genesis allotment.
Retroactive and Affiliate Rewards: $15,000,000 $WORK. (100% payout) Genesis Commons stakeholders will be rewarded for retroactive payroll mining for spending and referrals that occurred prior to the Genesis allocation.
5,000,000 $WORK per $50,000 of PCPV (starting at $50,000) will be included in the Genesis distribution. As it stands, the PCPV will exceed $150,000 by the time it launches on April 15, 2021. The final distribution will be determined by the PCPV for the payroll cycle immediately preceding the Genesis distribution.
47.6% of the Genesis Distribution or $150,000,000 $WORK is allocated to the Trustee. Although the Trustee, as a separate and impartial legal entity, has no legal obligation to disclose subsequent distributions of $WORK to the stakeholders of Commons, it has agreed that transparency of information to all stakeholders is the best approach. The expected distribution is as follows.
45,903,000 $WORK allocated to the Trustee Treasury (20% payout)
54,618,227 $WORK allocated to the founders and team (20% disbursement)
2,697,000 $WORK allocated to contributors (20% disbursement)
46,781,773 $WORK allocated to investors (20% disbursement)
Payroll Mining (Payroll Mining)
Payroll mining is the process of minting $WORK and distributing it to commons members. As a framework based on stakeholder capitalism, this opens up new possibilities for extended value and structural preferences that contribute to maintaining member satisfaction, thus realizing the long-term value of commons.
Payroll Mining has been carefully designed to financially align and reward all participants in the ecosystem with a view to achieving a shared vision: growth in the number of community payrolls.
Growth is measured by the increase in annual public employment numbers (“ACPV”). The payroll shows the number of payrolls across payroll cycles (“PCPV” = ACPV/24). This consistency is critical to the long-term sustainability and viability of the community.
$WORK is cast based on the payroll volume (Periodic Commons Payroll Volume (PCPV) growth milestone for each payroll cycle as established by the Commons administrator.
The growth milestone is set at $50,000 or a 5% increase in PCPV, whichever is greater.
Assuming PCPV reaches $150,000 WORK prior to release, the PCPV milestone for the initial phase is set at $200,000 WORK.
After the Genesis allocation, a fixed amount of $5,000,000 $WORK is minted and allocated for each Payroll Mining milestone. The stakeholder allocation for the Payroll Mining milestone is as follows.
30% (1,500,000) of the Payroll Mining $WORK is allocated to employee members for spending
30% (1,500,000) Payroll Mining $WORK is allocated to members for employee member referral spending
20% (1,000,000) Payroll Mining $WORK allocated to members who pledge between milestones
10% (500,000) of Payroll Mining $WORK is allocated to the Commons pool of funds
10% (500,000) Payroll Mining $WORK allocated to Trustees
For example, with a PCPV of $1,000,000 ($24 million ACPV) $5,000,000 of $WORK is minted and distributed to community members.
Once the PCPV grows by $50,000 and reaches $1,050,000, the next Payroll Mining $WORK distribution will take place.
When the PCPV reaches $1,050,000, the milestone difficulty will change to a 5% growth rate. With a PCPV of $1,050,000, $5,000,000 of WORK is minted and distributed. the growth required to reach the next milestone will be 5% or $1,102,500 of PCPV.
The $WORK incentive is inherently more generous to stakeholders who are early Commons members. As the ecosystem matures, the amount of payroll mining $WORK remains at $5,000,000 per milestone, and the difficulty between milestones will continue to increase.
The following are ACPV’s $WORK allocations (approximately 21,407 employee members) since launch to $1 billion, excluding the Genesis distribution.
As Commons annual public employment (ACPV) grows, the distribution of $WORK begins to shift toward communities.
Below are three examples that show trends at different levels of ACPV growth.
The total $WORK allocation, including the Genesis allocation meets the $20 million allocation in annual public employment.
The community allocation of $WORK grows to 58.9%.
This is the total $WORK allocation, including the $200 million ACPV Genesis allocation. The community allocation of $WORK grew to 70.5%.
This is the total $WORK allocation, including the $1 billion Genesis allocation in ACPV. The community allocation of $WORK increased to 74.7%.
For fun, the ACPV level reaches $8.3 billion when a total of $1 billion in $WORK will be allocated. based on model estimates, this is approximately 170,000 employee members.
The $WORK allocation model can be adjusted based on the management of the Board of Directors and employee members. No changes will be made for at least one year. An absolute majority of both groups would be required to implement any changes.
Commons is best described as a Digital Employment Cooperative (DEC) or Decentralized Employment Organization (DEO). Commons provides administrative shared services (aka “back office services”) that provide useful technical support to its employee members. These services currently include: payroll processing, compliance, tax withholding/remittance, reporting, accounting, benefits delivery and administration, group purchasing, etc. These services are contracted by Commons on behalf of Commons’ employee members with an administrative trustee (“Trustee”). Recently Opolis, Inc. (“Opolis”) was selected as a Trustee of Commons.
Independent workers (self-employed, odd jobs, contractors, etc.) who join Commons and become its employee members have the core value proposition of having access to low-cost/high-quality group health insurance, cheaper and stronger administrative services, and being an owner of the network.
Commons was formed as the Colorado Limited Cooperative Association (LCA). Colorado has a flexible cooperative law framework and is often referred to as the “Delaware of cooperatives”. This approach and jurisdiction was deliberately chosen to use this legal structure to support sustainable benefits on behalf of Commons members and to preserve Commons’ ability to exercise self-determination under the law.
Commons is a separate entity from Opolis, Inc. As trustee, Opolis has an arm’s length business services agreement with Commons, and it is an affiliate member of the cooperative. John Paller, founder of Opolis, serves on the Board of Managers of Commons.
Members receive $WORK awards for sponsoring activities that are considered to be of intrinsic value to Commons.
All members may.
- Earn $WORK in the form of consumer employment, payroll, and Commons shared services
- Pledge $WORK to earn pledge rewards (in the form of more $WORK)
- Earn $WORK by referring employee members to Commons
In addition, employee members can.
- Gain stronger governance by pledging to $WORK
The $WORK rewards earned through referrals remain the same while the referred member is still in Commons.
Accumulate value and community fees
Employee members pay a fee to Commons for their services. The Community Fee is set by the Administrator and is currently 1% of the member’s total payroll spend (salary + benefits + taxes) and is only assessed based on the member’s regular spend. No fees are charged during periods when employee members are not using any Commons services. Community fees are used to compensate the Trustees for technology and services provided to Commons and Commons members.
Within a membership of 1,000, Commons employee members may vote to increase or decrease fees by 1%. Any member-driven and agreed upon changes must also be approved by an absolute majority vote of the administrators to take effect.
Right to Profits
When announced by the Administrator and/or voting members, Commons members will receive a proportional share of annual net income as a sponsorship distribution, which is determined based on the amount of $WORK owned by the member. Future requirements to receive sponsorship profits may change based on Commons governance.
Non-member holders of $WORK are not eligible to receive a profit distribution, regardless of the amount of $WORK they own.
Pledgeable $WORK incentivizes all members to pledge and receive a pledge bonus (in the form of more $WORK)
Staff members who pledge $WORK gain enhanced governance in Commons’ decision-making.
Pledge rewards are designed to incentivize early adopters of Commons, with significantly higher rewards per contributor in early payroll mining blocks, to drive consumption and achieve strong network effects.
Affiliate members do not have access to enhanced governance rights through pledges.
Governance and Voting
As a benchmark, Commons follows a one-person, one-vote model. Employee members can pledge $WORK to gain enhanced voting privileges.
Affiliates do not have governance rights or the ability to gain governance rights. This is intentional to clearly align voting with the best interests of the employee members and the growing ACPV, while keeping the cost of service low.
If an overwhelming majority of the employee members agree, then the alliance members can be elected to become a board committee. When the two conflict, those serving as administrators are required to give up their employee member votes in favor of their administrator votes.
Collectively, the initial governance of Commons is overseen by a seven-member management committee (“Stewards”). In the short term, the Stewards will be expanded to nine employee members. In addition to the mandatory requirements of being a staff member, the appointment of stewards will take into account the alignment of expertise and values.
Affiliates may choose a management board if a supermajority of staff members are on the management board. Where relevant, those serving as Stewards waive their Staff Member voting rights in favor of their Stewardship voting rights.
The initial Management Committee consisted of the following seven individuals: John Paller (Opolis), Yev Muchnik (Launch Legal), Bill Warren (Pool-Party), Auryn MacMillan (Gnosis), Barry Goers ( Merkle Mountain), Eric Arsenault (DAOstack), and Spencer Graham (Raid Guild).
Once Commons reaches a size of 1,000 employee members, governance will begin to shift to the employee members, with the Management Board retaining only limited authority. Beginning at the end of the second quarter of 2021 following Genesis Distribution, Snapshot will be used to indicate the employee members’ preferences for governance proposals. Once implemented, secondary party voting will be used for employee member voting to ensure that no one in the community can financially control the community with one voice.
Examples of proposals that may be voted on by members include: changes to community fees, ACPV allocation schedules, payroll mining incentives, trustee elections, benefit options, feature requests, management board elections, etc.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/work-rewards-stakeholder-economics-and-the-tokenization-of-job-sharing/
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