Per Project contracts
Contribution & Investment Phase (ICO)
Anybody who contributes to Porch Logic receives “tokens” equalling the dollar amount at which their contribution or investment was valued. Investments are logged and added to the ledger every Friday. Investments are authourized by a signed contract between Porch Logic and the member, which specifies the value of the investment.
- Richard contributes 100 hours at $50/hour and receives 5,000 tokens
- Monica invests $20,000 and receives 20,000 tokens.
- 1000 people invest $5 each and receive 5 tokens each
- 30,000 total tokens now exist
When Porch Logic receives any income, it is distributed as follows:
- 15% is reinvested
- 15% finders fee to whomever brings the job
- 70% to all members of Porch Logic according to their percentage of tokens
The tokens represent members’ share of the value of the business, and if the business is ever sold or liquidated, the revenue will be disbursed as follows:
- 100% to all members of Porch Logic according to their percentage of tokens
Token holders are free to trade their tokens outside of the business.
Richard and Monica decide they want to be payed equally for the first project’s income of $3,000. Normally, Richard would receive $500 and Monica would receive $2000 (while the rest of the 1000 token holders would receive $0.50 each), so Richard sells 500 tokens to Monica for $500 so that each end up with $1000, and the new token standing is Richard: 4,500; Monica: 20,500; and the rest are the same.
Every Friday (investment logging day), any member can chose to invest more money in order to maintain their current percentage share of tokens. If the member does not have any standing contracts for time or asset investment, then their only choice is to invest money.
Nike, through its relationship with Monica, asks us to build an installation for $20,000. The installation requires equal parts content from Porch Logic’s gallery, and custom designed physical and digital content.
- $3,000 finders fee to Monica
- $3,000 reinvested in Porch Logic
- $7,000 distributed to Porch Logic token holders
$7,000 paid to contractors for custom designed content
We sell a Porch Logic digital painting for $5000 on the website.
$750 finders fee distributed to token holders
- $750 reinvested in Porch Logic
- $3,500 distributed to token holders