Conceptually RadGuild will operate like a DAO. Members will perform work and get compensated for their results. All income from product sales, services and royalties will flow into the Guild Treasury which will then be used to compensate the designers, developers, project leaders, testers and other workers who directly contribute to positive outcomes.
Separately there will be Member Tributes (Dues) and Sponsor Donations. These funds will arrive quarterly and the plan is to use them as follows:
- Cover basic Guild expenses including the work performed by part-time staff members who run the Guild and help lead marketing and sales efforts,
- Cover miscellaneous expenses including legal fees, software licenses and the like although the plan is to keep these kind of expenses to a minimum,
- Cover marketing and sales expenses, and
- Seed the Guild Treasury so that compensation is available to Members who perform tasks not directly tied to an immediate income stream.
In some cases funding will flow directly from customers to cover specific work. In these cases the Guild will preferentially assign senior Guild Members with appropriate skills to take the lead on these projects. All Guild Members who contribute to the success of these projects will proportionally divide up 75% to 80% of the customer fees according to the relative value of their work. The rest of the customer fees go to the Guild Treasury.
Periodically the Guild will access all of the work that has been accomplished recently and endeavor to compensate the corresponding Guild Members according to the value and quantity of their work. Those who did meaningful work on projects that were not compensated by outside customers will get the largest share in this process (although probably not as much as if they had worked similar amounts on a customer-paid project.) Having said that, all Members who got things done in the latest time period will get a meaningful share of the Treasury. In addition a a small portion of the Treasury will be divided by all Guild Members who remain active and in good standing even if they did not accomplish results in the latest time period.
The exact details for these payout formulas are to be determined. There also need to be operating rules that protect the Guild Treasury and other Guild assets from excessive depletion. The idea is for the Guild to provide meaningful work for its’ Members and compensate them fairly when they accomplish results. The Guild is not a get rich scheme although the planned Radix royalty system may lead to additional passive income for members of the Guild.
We fully expect that experienced proven Guild Members will be poached by outside projects from time to time. Therefore the Guild needs to remain in constant talent development mode in order to achieve ongoing success.