Note: this is only a proposal! This has never been done before, and I have no idea at this time whether it's feasible, or even legal.
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The financial intent of the business will be to make people independent. To that end, the company will fund $52,000 annuities to be given to people who help build and maintain the system.
The purpose of the fund is to take people out of the workforce without leaving them in poverty. A fund participant receives a weekly income large enough to live on, by which they may (if they choose) leave the workforce.
Income is paid in perpetuity: payout continues after death of original recipient, can be willed, inherited, sold or given away. Income is strictly one per person.
The proposed fund account returns $52,000/year ($1000/week). Fund amount needed to attain that level is hypothetically $1 million per participant:
- 10% Overall return (Indexed fund returns over 40 years == 12%. source)
- -3.5% Inflation adjustment
- -0.5% Management fees (Similar to Fidelity Portfolio Advisory Service. source)
- -5.2% Annual payout
With these numbers, fund will gain 0.8% annual value over time, which can be used as hedge against poor market performance.
AltSlashdot will employ N people for site management. Site will accrue profits until N times $1 million is attained, and then award each employee with one annuity.
This is the weak point 'site will accrue profits' but how? Advertising? advertorials? Donations? In general, I'd suggest that we use a standard template that deals with cash flow, income etc.
This is very good for 'employees' but it does nothing to prevent the same thing as happened to Slashdot 1.0. How is this new endeavor going to protect its users and be accountable to them? What prevents this from being a pump and dump? ~ElectricTurtle
- Agree with Electric... Primary purpose of any fund should be to cover operating costs, then worry about paying the people who run the place. To get a true quourum of /. here, I think it needs to be more open source than that, with assurances that the community won't lose out again... -- CoolHnd30
- I suppose it means that those involved in running this venture will bust their asses to make sure the fund hits that magic number. It would mean keeping visitors happy for how ever long that takes, spreading the word, and making that $$ come in. If the community isn't happy, people wont see ads / buy merch, and retirement never comes. I'm just assuming that's the thought process. - Cactus
- And once the goal is reached, the oligarchs can just turn on the community again, cash out, and say "Deuces!" while they get paid in perpetuity. ~ElectricTurtle
- True enough. Any suggestions on what would allay community fears while letting Okian Warrior do something at least similar to what he wants to try? I really think this idea could be a very strong motivator to those involved... but I don't know what would keep it from possibly going down in flames once the goal is reached. - Cactus
- Well, if you want to do this and not succumb to the "sold out" aspect, then the 'annuities' need to be in the form of shares - then the people who contributed to make the site get a say in how and what happens to it, and if the majority think selling out is a bad thing, then it will not get sold off. Sure, you need income to pay hosting and other things, but I think that can come with a subtle bit of advertising stuck off the bottom. Or you can sell the userbase's details to the marketeers .. like "not evil" Google does. Anyway, I think it should be more concerned with being more open source and idealistic from the start.