diff --git a/memo.md b/memo.md new file mode 100644 index 0000000..32b7708 --- /dev/null +++ b/memo.md @@ -0,0 +1,521 @@ +# Revnets | For Investors, Entrepreneurs, and Customers of Products and Services Monetized on the Open Internet +**Add value => grow revenue => become wealthy openly and welcomely together.** + +This memo makes the case for revnets. It is delivered in 3 parts: +1. **What's the big deal?:** Provides context about the problem and how revnets are positioned to play a role in shaping the future. +2. **What are the terms?:** Includes specifics of how you are invited to participate as investors, and an FAQ. +3. **What do they look like?:** Illustrates the opportunity with examples and case studies. + +## Contents +1. [Part 1 – What's the big deal?](#part-1--whats-the-big-deal) + - [1.1 TLDR](#tldr) + - [1.2 Overview](#overview) + - [1.3 Anatomy of a revnet | Introduction](#anatomy-of-a-revnet-intro) + - [1.4 Why now? Why us?](#why-now-why-us) + - [1.5 Call to action](#call-to-action) + - [1.6 Examples](#examples) +2. [Part 2 – What are the terms?](#part-2--what-are-the-terms) + - [2.1 Overview](#overview) + - [2.2 Anatomy of a revnet | Advanced](#anatomy-of-a-revnet-advanced) + - [Tuning](#tuning) + - [Loans](#loans) + - [2.3 $REV](#rev-1) + - [$REV stage 1](#rev-stage-1) + - [$REV stage 2](#rev-stage-2) + - [$REV stage 3](#rev-stage-3) + - [Accessibility](#accessibility) + - [2.4 RRG](#rrg) + - [RRG Mission](#rrg-mission) + - [Bottom line](#bottom-line) + - [Structure](#structure) + - [Onchain management](#onchain-management) + - [Offchain management](#offchain-management) + - [Spend](#spend) + - [2.5 RF1](#rf1) + - [2.6 FAQ](#faq) + - [How would revnets work in the context of traditional capitalization structures?](#how-would-revnets-work-in-the-context-of-traditional-capitalization-structures) + - [Should I invest in RRG, $REV, or...?](#should-i-invest-in-rrg-rev-or) + - [What are the risks I should be aware of?](#what-are-the-risks-i-should-be-aware-of) +3. [Part 3 – What do they look like?](#part-3--what-do-they-look-like) + - [3.1 Overview](#overview) + - [3.2 $NANA](#nana) + - [3.3 $BANNY](#banny) + - [3.4 $SUCKS](#sucks) + - [3.5 $CROPTOP](#croptop) + - [3.6 $DEFIFA](#defifa) + - [3.7 $NANCE](#nance) +--- +![image](https://github.com/user-attachments/assets/da371e2b-e834-45ae-bd2e-db5242fc1dde) + +## Part 1 – What's the big deal? + +### 1.1 TLDR + +Today's crypto and media networks have a business model problem, rooted in the tensions between open source productivity and private value capture. This has often led to misallocated resources and capital losses. + +Revnets offer a promising solution, as a hands-free all-in-one tokenized incentive machine, cap table, and growth engine for leaders, workers, investors, and yesterday's customers that helped make today possible, while removing common causes of disputes between them. + +Revnets are an openly accounted-for standard that can motivate the funding and distribution of business offerings, open source projects, campaigns, indie media, and cultural movements without governance risks, liquidity requirements, or management overhead. Simple enough for a group of friends, powerful enough for high net-worth, global communities, products, and brands. + +Join us – a group of active Web3 builders with vivid stories to prove it – in founding and growing the $REV network, which operates as a revenue-generating revnet itself. + +### 1.2 Overview + +With today's societal demand for mobility[^1], open source and openly accounted-for fundraises and revenues should outcompete everything by enabling: + +- **Scaled Participation:** Flexible and potentially global community with vested interests. +- **Full Transparency:** Public code and accounting is more trustworthy and easier to cooperate with. +- **Cost Efficiency:** Many managerial expenses are not needed when there are no secrets or artificial barriers to progress. + +They struggle to enforce revenue-generation to pay for innovation, maintenance, and growth due to three core dilemmas: + +- **Monetization Dilemma:** Establishing and justifying debt obligations, growth expenditures, and profit margins on revenue is difficult as an open business scales. +- **Moat Dilemma:** The work and strategies of open businesses can be copied without inheriting the baggage of the original, meaning cheaper alternatives can emerge easily, devaluing the various costs borne by the original. +- **Dependency Dilemma:** Many profitable businesses rely deeply on open source components, yet don't have clarity on how to foster a productive financial relationship with their communities, or motivation to do so unless developed in-house. + +This makes realizing open ideals reliant on free and inconsistent labor, donations, grants, or corporate sponsorship, when this should instead be the most investable and rewarding category of internet business. + +Auto-enforceable blockchain agreements are the correct building block on which to build legitimate decentralized value networks, but today's attempted business model solutions are incomplete and come with unsustainable tradeoffs. Businesses and investors currently have the following options for monetizing onchain: + +- **Liquidity farming:** Tokenized models marketed as open and yield providing, but with implicit or explicit backdoors for insiders to dump on retail once they've filled their bags. +- **Governance DAOs:** Tokenized voting systems that decide how raised funds and revenues should be spent, creating power struggles that get in the way of effective capital allocation. +- **Revenue sharing:** Tokenized guarantees that sales will be split between certain entities, but with no follow-on incentive for propagating network growth after fees have been extracted. +- **NFT memberships:** Rare tokenized artifacts whose value will speculatively increase as the issuing entity becomes popularized, but with no liquidity apart from exhausting pump and dumps. +- **Custom mechanisms:** Custom tokenization dynamic with a unique set of coded rules that attempt to fulfill a desired set of outcomes, but requiring everyone to learn a new jargon-filled system and trust that it is implemented bug free. +- **Grants and donations:** No tokenized monetization strategy, just builders and investors with an expectation that their value creation, if done openly, will be retroactively rewarded by altruists who directly benefited from the outcomes. +- **No progress:** Take investments and fees to a centralized wallet to operate from just like traditional capital structures, with no networked benefits from the tools at our disposal. + +We need a better place to put our money. A revenue-forward growth-oriented solution that is sustainable, reliable, simple, and massively scalable to help every value-creating business with an online growth presence – local and global – realize their potential in the upcoming tokenized economy. + +We think revnets might be it: A win-win-win growth engine for investors, builders, and retail customers of open source and beyond. Built by developers who've helped facilitate over $185 million in ETH payments over their past 4 years of experience designing, building, securing, and distributing Ethereum-based tokenization infrastructure. + +Revnets are easy to use, a bicycle for online economies. They resolve the three dilemmas above by creating openly accounted-for financial networks with clearly bounded risks that reliably benefit those who pay fees, invest, help the network grow and stick around. They are great for startups overcoming the cold start problem, and a great exit strategy for established organizations such as governance DAOs like UNI, ENS, ARB, JBX, and others who prefer tending towards autopilot growth benefiting all members. + +Importantly, revnets aren't just an esoteric tool for obscure internet subcultures. Blackrock CEO Larry Fink and prominent others say the necessary and inevitable tokenization of everything will enhance the landscape of finance. As Fink puts it, "the next generation for markets, the next generation for securities, will be tokenization of securities."[^2] We have understood this for years. We think revnets will participate in the mainstream's vision by being the most productive structure for both large organizations and small businesses to tokenize revenues, fundraises, compensation, and financial partnerships globally. Revnets are the SAFE and C-Corp agreements of this economy, but 100x better. + +We're deploying a $REV revnet that'll earn 2.5% of all funds cashed out from fundraises and revenues from all revnets. We invite you to take part in $REV, the first 90 days favor grassroots investors on equal terms. We're also supporting the launch of revnets for ten other spectacular projects we've been working with, demonstrating how revnets are: + +- **Versatile:** This simple financial instrument has the power to support diverse applications. +- **Standardized:** They create a familiar business interaction standard, leading to a positive feedback loop for all revnet-based projects. +- **Interoperable:** They have the ability to relate financial outcomes between each other, encouraging more collaboration within a competitive business landscape. + +Projects will choose a revnet business structure when they prefer their outcome to be oriented towards maximizing the network's self-propagation while minimizing the potential of any party with privileged access and exploitable liabilites. They'll understand their work to have value while also understanding a network's preference to work for itself once instigated, like Bitcoin and Ethereum. + +### 1.3 Anatomy of a revnet | Introduction + +Think of revnets like a spicy Bitcoin halvening rule. Similar to Bitcoin, revnets are a fully pre-configured financial structure – although they can evolve over time, they do so according to rules that are set in place at the time of their creation. Unlike Bitcoin, the rules dont involve proof-of-work with periodic supply shocks that lead to a fixed supply of 21m coins over time. Revnets enforce a certain other set of guarantees affecting inflows and outflows of money. + +These guarentees can be visualized as a digital vending machine: +1. Receives dollar bills from a business's raised funds and revenues. +2. Dispenses its unique tokens (henceforth $TOKENs) and optionally digital artifacts (NFTs) in return. +3. The only way to access the dollar bills the machine has earned is to give it its $TOKENs back. + +Revnets enforces three main customizable rules that can be preset to change over time, but whose sequence is fixed once set: + +- **$TOKEN price:** There is always a price at which it is willing to issue new $TOKENs, and it will instead forward inbound funds to an AMM offering a better rate than the issuance rate if one exists. This price can be set to change over time at a customizable rate. +- **$TOKEN split:** The purchase of $TOKENs can split some off to a privileged account. This split percent can be set to change over time at customizable intervals. +- **Cash out price:** There is always a price at which its willing to distribute its revenue when it receives its $TOKENs back. Each cash out increases the value of the next cash out, by a customizable rate. + +> For example, A revnet can be (1) paid in ETH (or other tokens), which (2) generates its own token at a given price, say 1 ETH buys 1,000 $TOKEN. A revnet can (3) have a split in place that automatically sends a percentage of these new $REV to a set of pre-established entities, say 20% split so that 100 $REV goes to each of two builders and 80% goes to the payer of the 1 ETH, which (4) stays in the vending machine. + +Screenshot_2024-01-21_at_17 59 01 +
+
+ +> In order to get the 1 ETH back out, a $TOKEN holder has to cash out, which incurs a tax. This means if (5) one of the builders wanted to cash out their 100 $TOKEN right away, they would (6) get less than the proportional 0.1 ETH if a tax was in place, leaving revenue on the table for those who cash out later. The specifics of the issuance price, split, and cash out tax are set as a sequence of fixed-duration stages that are all specified when the revnet is deployed. + +Screenshot_2024-01-21_at_17 58 43 +
+
+ +This means revnets are: + +- **Governance-free**: Governance inefficiencies and takeovers of funds are impossible. +- **Management-scoped**: Revnets operate autonomously according to their pre-configured rules, scoping risks and making overreach impossible. +- **Liquid**: Revnets work with the open market to make and take liquidity, helping startups bootstrap growth and making market manipulation unfavorable. +- **Deterministic**: Investors, builders, community, and customers each act within a revnet's known rules, enforced programmatically from start to finish. +- **Familiar**: Transparency and diligence are simple. Once one revnet's workings makes sense, all revnets make sense. + +Revnets also inherit the best properties of Ethereum: + +- **Immediacy**: Encode sophisticated financial relationships between global participants with immediate settlement. +- **Clarity**: Allow for ownership and access rules that can't be subjectively misinterpreted. +- **Certainty**: Express and enforce clearly scheduled rules. +- **Auditability**: Impossible to hide, simplifying diligence for all participants. +- **Composability**: Easy, reliable, and open access to and from other smart contracts, including other revnets for interdependent accounting schemas. + +As a result of its properties, a revnet's $TOKENs are reliably backed by the underlying value of the revenue used to issue them. This makes $TOKENs great collateral for loans, which each revnet also offers, for a fee paid into itself. + +Part 2 of this memo digs in deeper, and discusses how we are tuning the $REV revnet for deployment. Part 3 follows with examples, case studies, and hypothetical scenarios. + +### 1.4 Why now? Why us? + +Those of us developing revnets have been contributors to the Ethereum ecosystem over the past 4 years, most notably having helped build the Juicebox protocol, the juicebox.money app, and the Juicebox DAO community driven by the $JBX network. Juicebox is public infrastructure that provides a tokenized language for expressing various organizational financial guarantees. It has been fundamental to the making of Constitution DAO, Assange DAO, Shark DAO, Moon DAO, Cryo DAO, Juicebox DAO, the Tornado Cash developer legal defense fundraiser, and 1,331 other projects, facilitating over $185 million in ETH payments. + +In this era of crypto and media networks that innovate on internet-native concepts, and with societal demand for mobility[^1], private corporate-stock models of centralized organization are anachronistic. We've experienced the demand for tokenized fundraising and revenue first hand, we know the tradeoffs of the tokenization tools at our disposal intimately well, and we know how cultural narratives around tokens work. We've been consistently one step ahead of the curve and steadfast in our values. + +We've also seen the negligence and gross extractive tendencies that over-leveraged entrepreneurs, investors, and traders can succumb to when left unchecked. Blockchains give us transactional freedoms – using them to progress positive-sum game-theoretic financial applications like revnets is non-trivial, while using them to manipulate the public with hyped-up zero-sum Ponzi schemes is easy and unfortunately all too common. + +Revnets are the next step. They are an expression of the Juicebox language we know so well, and the tokenized standard we're sorely missing to encourage more projects – many of our own – to hit the gas with confidence and without incumbent tradeoffs. + +Their time is now – revnets would be too fragile to exist if a rent-seeking fiduciary facilitating the handling of money and rules was required, and can only outcompete as an encoded contract between network participants enforced by the blockchain protocols of today. + +We've been working on revnets conceptually since late 2023. They're now implemented and ready for showtime. + +### 1.5 Call to action + +Revnets can power millions of startups to become global movements, high net-worth interconnected economies, and retail-owned brands that outcompete traditional private alternatives, meanwhile helping incumbent businesses – for-profit and non-profit corporations and associations – transition to the more powerful open internet. + +With revnets, the open internet will outcompete private alternatives _because_ it best serves creatives, builders, investors, and consumers alike. + +We're calling on partners who believe in this revenue-forward version of the open internet to join the $REV network. The more we help each emergent revnet win, the more we win, the more the open internet wins. Read Part 2 of this memo if you're leaning in. + +--- +![image](https://github.com/user-attachments/assets/01ba051e-cb0d-4364-8539-76199512eed6) + +## Part 2 – What are the terms? + +### 2.1 Overview + +Investors interested in the promise of revnets should know there are three core entities at play: +- **$REV:** A revnet. +- **Revnet Research Group, LLC (RRG):** The split operator of the $REV revnet to start. +- **Revnet Fund 1, LLC (RF1):** A fund that interfaces between traditional limited partners and onchain revnets. + +It is important to also mention Juicebox DAO ($JBX), the community instrumental to the research and development of revnets. + +In summary, they have the following relationships: +- $REV's split is operated by RRG, described below. +- RRG makes, secures, and markets tools that help make $REV and other revnets more successful. +- RF1 takes in dollars from investors and limited partners, then converts to crypto for allocating to $REV and other revnet $TOKENs it believes in. +- Juicebox DAO makes, secures, and markets the Juicebox v4 protocol with which all revnets are expressed. +- Each revnet pays a 2.5% cash out fee to $NANA – the fee-token of Juicebox V4 broadly held by Juicebox DAO. +- $NANA operates as a revnet, meaning it pays a 2.5% cash out fee to $REV like all other revnets. +- The above two points mean that each revnet's total cash out fee is 5%, with 2.5% going to $REV and 2.5% to $NANA. + +This section will go through these specifics in detail. + +### 2.2 Anatomy of a revnet | Advanced + +Understanding the terms of the gameplan first requires elaborating on a revnet's anatomy. + +Revnets unfold in stages. Each stage specifies five rules that dictate everything about how the revnet operates: + +| **Rule** | **Description** | +|---------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| +| **Duration** | How long does the stage last? A revnet’s final stage lasts forever. | +| **$TOKEN Price** | **Starting price:** How much does it cost to buy a single $TOKEN when the stage begins? The payment's value stays within the revnet and can only be accessed by $TOKEN holders who cash out.
**Price increase:** How frequently, and by how much, does the $TOKEN's price increase within the stage? | +| **Split** | What percentage of $TOKEN issuance (and buybacks) are set aside for a list of recipients, and which address is the split operator? The split operator can add, remove, or modify recipients on that list, changing how the split is allocated within the fixed percentage set for the stage. | +| **Automint** | How many $TOKENs get minted to a list of recipients at the start of the stage? This functions like a "pre-mint" only accessible once the stage has started. | +| **Cash out tax** | How much does the revnet's next potential cash out increase each time a $TOKEN holder cashes out? This sets a cash out price that gets better as others cash out or new funds come in. The cash out tax is specified with a number 0-1, with 0.99 being the most intense tax and 0 being no tax. | + +It inherits some useful properties from Juicebox V4: +- **AMM Liquidity:** If $TOKEN holders add liquidity to an AMM[^3] and it offers a better price than the revnet, the revnet will route incoming payments to that market instead of issuing new $TOKENs. The revnet's split is applied to these buybacks as well. +- **Multicurrency:** A revnet can accept and hold any number of assets received as revenue, though it defines its $TOKEN price in one consistent currency. If it issues 1,000 $TOKENs per ETH and the revnet is paid some USDC, $TOKENs are issued given the current USDC/ETH price. The revnet can be set up to either hold the USDC received and allow its $TOKEN holders to cash out from this balance, or auto-swap the USDC for an asset it prefers to hold. The network's $TOKENs are backed by the assets it chooses to hold, inheriting their risks and opportunities. +- **Omni-chain:** Revnets can grow to accept money on new EVM-compatible networks[^4] as they emerge, and also offer cash outs on those networks. Holders can move their $TOKENs between chains. When they do, the revnet automatically moves its assets so that the $TOKENs maintain their underlying value. + +#### Tuning + +Notice, revnets can be tuned to achieve various outcomes. They are not cheatcodes for entrepreneurs and investors lacking earnest real world insight, nor capital magnets for those expecting a free lunch. They still take strategy, risk, storytelling, and execution, amplifying those who follow through. + +Each revnet should consider its own unique circumstances when navigating the following tuning decisions: +- **Choosing a price:** revnets with infrequent and shallow price decreases leave room for more equal access over time to entice newcomers, but may lack energy from incumbent participants whose contributions are less recognized. +- **Choosing a cash out tax:** revnets with a larger cash out tax reward more committed participants, but give everyone less access to liquidity. +- **Choosing token distribution:** revnets with splits or automints can acknowledge the non-financial forms of participation which are often the subjects around which they revolve, but also can create scoped management burdens requiring more trust. + +There is no such thing as an apriori ideal tuning of a revnets rules, just as there was never an apriori perfect Bitcoin halvening timeframe or fixed supply number. A successful tuning is one that manages to convey the right incentives – either on purpose or on accident – to stimulate growth over time. + +Three effects to visually note: + +1. The scheduled $TOKEN price increases can cause exponential decay in issuance potential: +image + +2. A cash out tax (`r`) effects the available reclaimable amount from the revnet at any given time on a curve depending only on outstanding token supply and total funds in the revnet (`reclaimable amount = cashed out $TOKEN amount * revnet balance / total $TOKEN supply * (r + cashed out $TOKEN amount * (1-r) / total $TOKEN supply`): +image + +3. The $TOKEN price and the cash out price together form a price ceiling and a price floor that an AMM can service between: +image + +#### Loans + +A revnet can be set to offer its $TOKEN holders loans from its asset base by holding the $TOKENs of the borrower as collateral. This allows for overcollateralized loans at a risk-free rate while also generating revenue, a win-win from the perspective of the revnet's $TOKEN cash out price. + +This means $TOKEN holders are incentivized to prefer that their revnet loans out as much as possible, as each new loan permanently increases the cash out value of all $TOKENs. Every $TOKEN holder has equal access to loans at all times. + +Loans can last a maximum of 10 years. A borrower can choose to pay over time at a rate that linearly increases as the loan duration approaches 10 years, choose to pre-pay for the loan at half the cost, or mixed – prepay for some duration and continue on paying full price if its still not paid off. This revenue goes to the revnet itself, issuing or buying back more $TOKENs for the borrower. + +Loans from all revnets also incur a 2.5% $NANA fee and a 0.5% $REV fee, in addition to this fee charged to the revnet being borrowed from. + +### 2.3 $REV + +RRG is setting up $REV's revnet rules attempting to emphasize the following principles: +- **Simple:** Its rules play out in 3 stages that should be easy to think about, with occasional important shifts that feel ceremonial. +- **Self-owned growth:** It should make sure all participants who will sustain its growth – investors, builders, storytellers, fans, donors, fee-paying retail consumers – feel like it benefits them. +- **Clear incentives, from startup to scale:** It should make both elders and newcomers feel like it acknowledges risks and contributions over time. +- **Inefficient rent seeking:** It should have a reliable immunity instinct that efficiently protects and rewards productivity. +- **Flexible:** RRG will steward a meaningful token split affording it some operational flexibility, which is a responsibility it can minimize and revoke down the road. It will assume some trust from supporters. + +#### $REV stage 1 + +_Price increases by 50% every 90 days. 40% of issuance and buybacks to Revnet Research Group. Automint an initial supply to acknowledge pre-net work. Cashing out leaves some money on the table._ + +| **Rule** | **Value** | +|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| +| **Duration** | 720 days (~2 years). | +| **Initial price** | 1 $REV costs 0.001 ETH. | +| **Price increase** | Increase by 50% every 90 days. | +| **Split** | 40% split of issuance and buybacks operated by `rrg.eth`. | +| **Automint** | 69,000 $REV to `rrg.eth` for pre-launch work. | +| **Cash out tax** | Medium (0.5). The network consolidates when holders cash out. | + +> RRG can shape the split distribution within the hardwired 40% over time (or relinquish the power), and will receive the initial automint. Prospectively, the 40% split will have 27% routed to `rrg.eth`, and 13% to `dao.jbx.eth`. The 69,000 automint will have 25,000 sent to `dao.jbx.eth` (JuiceboxDAO), 10,000 to `breadfruit.eth`, 10,000 to `filipv.eth`, 10,000 to `codalabs.eth`, 4,000 to `openesquire.eth`, 2,000 to `kmacb.eth`, 2,000 to `0xba5ed.eth`, 2,000 to `noobwonder.eth`, 2,000 to [Peel](https://juicebox.money/@peel), 1,000 to `drgorilla.eth`, 1,000 to `peacenode.eth`, 500 to [Juicecast](https://juicebox.money/@juicecast), and 500 to LJ. + +##### $REV stage 2 + +_Starts 2 years after the revnet is deployed. Price continues increase by 50% every 180 days. 40% of issuance and buybacks continue to Revnet Research Group. Automint a vested supply to acknowledge pre-net work. Cashing out still leaves some money on the table._ + +| **Rule** | **Value** | +|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| +| **Duration** | 6,480 days. (~18 years) | +| **Initial price** | Where stage 1 left off. | +| **Price increase** | Increase by 50% every 180 days. | +| **Split** | No change. 40% of issuance and buybacks operated by `rrg.eth`. | +| **Automint** | 127,000 $REV to `rrg.eth` for pre-net work. | +| **Cash out tax** | No change. Medium (0.5). | + +> Prospectively, the 40% split will be have 8% burnt, 20% routed to `rrg.eth`, 12% to `dao.jbx.eth`. The 127,000 automint will have 35,000 sent to `dao.jbx.eth`, 20,000 to `breadfruit.eth`, 20,000 to `filipv.eth`, 20,000 to `codalabs.eth`, 10,000 to `openesquire.eth`, 5,000 to `kmacb.eth`, 5,000 to `0xba5ed.eth`, 5,000 to `noobwonder.eth`, 5,000 to [Peel](https://juicebox.money/@peel), 1,000 to `drgorilla.eth`, 1,000 to `peacenode.eth`, 500 to [Juicecast](https://juicebox.money/@juicecast), and 500 to LJ. + +##### $REV stage 3 +_No more issuance. 10% of issuance and buybacks to Revnet Research Group. Cashing out leaves less money on the table._ + +| **Rule** | **Value** | +|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| +| **Duration** | Forever. | +| **Initial price** | 0. No more issuance. | +| **Split** | 10% of buybacks operated by `rrg.eth`. | +| **Cash out tax** | No change. Small (0.2). + +> Prospectively, the 10% split will always be burnt. + +#### Accessibility + +Anyone can pay into $REV at any time. It is also hardwired to receive a 2.5% network fee whenever someone cashes out from any revnet – thousands of digital vending machines plugged into the $REV vending machine. Both one-off payments and fees are treated the same and used to either issue new $REV from its revnet or buyback $REV from the market, depending on which is a better deal. + +We want to especially encourage investors to join who see potential use for revnets in other areas of their portfolios, and who can help the adoption of the revnet standard. + +Both token-comfortable people interacting directly from their favorite EVM blockchain, and token-curious people interacting using traditional methods through RF1, are welcome. + +### 2.3 Revnet Research Group (RRG) + +We'll use an LLC named Revnet Research Group to support the revnet ecosystem and help it interface with conventional tech and finance sectors. + +We think it's important for RRG to set an example of how a corporate partnership can be successful as a scoped subcomponent of a public onchain revnet structure, in this case $REV. + +#### RRG Mission + +RRG will serve the growth and sustainability of open internet economies through revnets. We think its realistic to expect $1 billion of assets locked in revnets in 4 years. + +In the short term, we need to make sure the upcoming revnets have a great chance at being successful, delivering revnets as the clear vision of how wealth will be most productively created and distributed in our future. + +#### Bottom line + +RRG will achieve its mission in three ways: build and market a great [revnet.app](https://revnet.app) – the trusted web link to browse and participate in revnets through, leverage its $REV balance towards marketing and ecosystem development, and accelerating new revnets with consulting, funding, tools, and staff. + +RRG will also have leverage to charge fees when facilitating access to revnets for traditional institutions. + +#### Structure + +RRG, LLC will be a Delaware-based entity primarily engaged in investing in $REV tokens and the development of the #REV ecosystem. The LLC will have four members: Jango, Filip, Aeolian, and KMac. Given its member-managed structure, these individuals will actively participate in the management and decision-making processes of the LLC, ensuring a hands-on approach to both investment strategies and ecosystem development. The primary business activities will include acquiring and holding $REV tokens, as well as fostering growth and innovation within the Revnet ecosystem through various initiatives and partnerships. + +#### Onchain management + +Onchain, RRG will manage its $REV with a 3/6 multisig at `rrg.eth`. The multisig is controlled by: + +- `breadfruit.eth` (jango) +- `filipv.eth` (Filip) +- `codalabs.eth` (Aeolian) +- `kmac.eth` (Kmac) +- `dao.jbx.eth` (JuiceboxDAO) +- `openesquire.eth` (Robert Leonhard) + +#### Offchain management + +Offchain management of the corporation will be led by Jango, Filip, Aeolian, KMac, Robert, and other members of the Juicebox community: + +[Jango](https://jango.eth.sucks) founded and has developed the [Juicebox](https://juicebox.money) protocol to support organizational money experiments on the public internet. + +[Filip](https://filip.world) has been working on Juicebox since November 2021, focusing on documentation, off-chain tools and services, and frontend development, as well as directly supporting many Juicebox project creators. + +[Aeolian](https://x.com/aeolianeth) has been working on Juicebox since November 2021, and leading the development of [juicebox.money](https://juicebox.money) since 2022. Aeolian also makes essential tools to support the Juicebox ecosystem: [juicescan.io](https://www.juicescan.io), the [Juicebox SDK](https://github.com/Bananapus/juice-sdk-v4), and the in-progress [revnet.app](https://revnet.app). + +[KMac](https://kmacb.eth.limo) is an experienced entrepreneur who has been contributing to multiple DAOs including Solace, Purple, Juicebox and Defifa. + +Robert Leonhard is the co-founder of [Open Esquire](https://openesq.tech), a group of legal engineers serving Ethereum projects and many Juicebox projects. + +#### Spend + +RRG will use the $REV it earns to support the launch, security, and distribution of revnet.app and associated revnets. We will staff jango (project/tech lead), filip (ops/tech lead), aeolian (consumer/tech lead), kmac (marketing/tech lead), and rob (legal). + +The technical and product todos include: +- iterate on revnet.app to best serve revnet participation and creation. +- standby for risk mitigation as the contracts gain legitimacy through use. iterate if necessary. +- build dev tools that make revnets easier to integrate within financial and white-labeled applications. + +The marketing todos include: +- tell the revnet story. +- support the success of the initial cohort of revnets by telling each of their stories. +- create a trustworthy brand. +- run a "This Ad is funded by a revnet" campaign, and other concepts. + +### 2.5 RF1 + +There will also be a Rev Fund 1, LLC, a Delaware-based private investment fund structured as a limited liability company. Its primary focus will be on investing in $REV projects, with an investment mandate managed by a registered investment advisor (RIA). The fund will target private investors who meet the standard accreditation and qualification criteria, complying with the 3(c)(1) exemption under the Investment Company Act. Capital will be raised through a private placement offering, with investors committing to specified minimum investment amounts. The RIA managing the fund will charge a 2% management fee, ensuring dedicated oversight and strategic investment in the $REV ecosystem. This fee structure aligns with industry standards, providing transparency and incentivizing effective fund management. + +More about RF1 soon. + +Learn more and reach us from RRG at [rev.eth.sucks](https://rev.eth.sucks). + +### 2.6 FAQ + +#### How would revnets work in the context of traditional capitalization structures? + +Revnets can complement and enhance traditional equity structures, making them applicable not only to crypto-native companies but also to more conventional corporations and organizations. + +Corporations and associations like C-Corps, LLCs, UNAs, DAOs, and 501(c)(3) nonprofits can benefit from their own revnet by involving customers and community members as active participants in their growth. The revnet can be used to drive new revenue streams, increase engagement, and aligning the success of the revnet with its own financial performance. + +These organizations can act as both token holders and split operators. As a token holder, a corporation benefits directly from the growth of the revnet, as its tokens appreciate in value. As a split operator, the organization can determine how much control it wants over the token supply: + +- **Full control:** The organization could set up the revnet to receive 100% of the tokens, allowing it to maintain full control over the token distribution and benefits. +- **No Control:** Alternatively, it could choose to receive 0% of the tokens, relinquishing control to the broader community to encourage decentralized growth. +- **Partial control:** The organization might opt for a middle ground, controlling a portion of the token supply for a set period. + +This flexibility allows traditional organizations to tailor the revnet to their specific needs and goals. Meanwhile, the revnet remains resiliant to being rugged by the entity, as doing so will incure the exit tax and benefit remaining holders most. Everyone involved is incentivizes to grow the revnet, even if there also exits other incentives alongside to grow a for-profit or non-profit traditional organization – in ideal cases these go hand-in-hand. + +Revnet Research Group (RRG) exemplifies this approach by taking a 40% split of the $REV revnet. This means RRG retains a significant stake in the revnet's growth while leaving 60% of the tokens to the broader community, incentivizing collective participation and shared success. + +#### Should I invest in RRG, $REV, or...? + +There are four core entities in play: $REV, RRG LLC, RF1 LLC, and JuiceboxDAO ($JBX). + +- For those onchain, build direct exposure to $REV to benefit from revenue growth without proxies. +- RRG LLC is an operational group whose mission is to grow $REV. It is not directly investable. +- RF1 LLC is the only current way to access the ecosystem for participants who don't want to access tokens directly onchain. RF1 will facilitate revnet interactions on traditional investors' behalf, albeit for a management fee. +- Also for those comfortable accessing tokens onchain, $JBX is a fixed-supply governance token which has been on the market for several years, now utilizing its treasury to build out the Juicebox ecosystem – the revnet project and several others were informally incubated from within JuiceboxDAO. It is expected to receive a split of $REV issuance and buybacks, making it a great proxy to build ongoing exposure to $REV's revenue growth – albeit subject to the risks associated with each entity's governance process. You can learn more [here](https://docs.juicebox.money/dao/). + +#### What are the risks I should be aware of? + +**Smart contract risk**: Revnets are built using the Juicebox V4 protocol which can exist across multiple EVM blockchains. Though it is a fork and iteration of Juicebox V3 that secures tens of millions of dollars in locked value on Ethereum mainnet, there is the possibility of smart contract bugs that cause the system to collapse. JuiceboxDAO has spent the better part of the last year's time and budget on testing, documentation, and hiring third party auditors, though is always encouraging more eyes on the open source code base. Ultimately, smart contract security comes from production lindiness while managing funds at risk. + +**Organizational risk**: $REV runs on its own and has no organizational risk. RRG and $JBX on the other hand, do have organizational risks exposed through the same governance means that affords them certain flexibilities to pursue emergent opportunities. Engaging with either RRG or $JBX should warrant due diligence to understand how decisions have been made and how they'll likely continue to be made within those organizations. + +**Market risk**: RRG is a for-profit organization that will look to build its $REV exposure and harness its specialization in revnets to become successful. We believe revnets are marketable and can outcompete alternative organizational structures, but this is an unproven thesis with projects outside of our own. Choosing an organizational token structure is a big decision that each project tends to make only once and stick to forever afterward. It's hard to become the standard structure, but once the standard is set it tends to stick. At first, the revnet sales cycle will likely be long, we'll want to observe how the structure provides value both as a supportive component of already-existing organizations, and as the core piece of new orgs starting up. We'll lead the way with great examples of successful revnets folks can look up, starting with $REV, whose energy will help us reach critical mass. + +**Immutability risk**: Though a revnet's immutability is its core value proposition, some might also view this as a risk. A revnet is impossible to course correct once deployed and legitimacy has been established. Mainly, the $REV specification that determines issuance policy could turn out to not motivate activity as much as intended. A perfect revnet configuration is hard to know ahead of time, and there aren't many levers that expose control within its ruleset – like bitcoin, the hardcoded rules can only teleologically be deemed productive if the network proves itself in competition with forked alternatives. The two variables that do offer control and flexibility within the $REV revnet specs are the 38% split that rrg.eth will operate, and the autominted tokens. RRG can play a part in reorienting priorities using the split in order to stimulate some desired behavior, and can reasonably expect the autominted token holders to act in the best interest of the network's growth. + + +--- + +![image](https://github.com/user-attachments/assets/ac3db796-bdfc-4cb3-be41-78428ecbf586) + +## Part 3 – What do they look like? + +### 3.1 Overview + +There are three categories of revnet businesses that we foresee in the near term: +- **Direct sales:** These revnets' tokens are sought directly from the usage of applications that take fees, or from the sales of goods and services. These can be onchain applications which hardcode and automate the routing of funds to the revnet, or offchain applications which rely on an intermediary entity to manage engagement with the revnet and token distribution on users' behalf. +- **Subscription fees:** These revnets' tokens are sought because they permit access to certain functionalities onchain or offchain. +- **Memetic:** These revnets' tokens are sought because holders believe in the network's capacity to aggregate attention and cultural relevance, or because the tokens serve a secondary purpose like signaling loyalty. + +We expect these business models to be initially used by three main categories of organizations: +- **Onchain:** Revnets with zero split percentages, or split percentages going to onchain multisigs and onchain DAOs with no offchain organizational considerations. +- **Hybrid:** Revnets with a split percent operated by a traditional for-profit or non-profit corporation or association. +- **Campaign:** Revnets with a near-100% split percentage, useful for ongoing fundraises that prefer access to all the capital for affecting a specific set of causes. + +A revnet can belong to any number of these categories, and grow into others over time as new ideas emerge and market preferences shift. $REV, for example, is best described within the "direct sales" category because it benefits from fees taken directly within the smart contract routines, and is a "hybrid" structure with RRG as the split operator. + +There are likely other strategies for using revnets that we've yet to explore in depth. + +Below are some other revnets we're helping launch this next year within each of these categories: + +### 3.2 $NANA +| | | +|------|--------| +| **Site** | [https://nana.eth.sucks](https://bananapus.eth.sucks) | +| **Business model category** | Direct sales | +| **Organizational category** | Onchain | +| **Value prop** | Captures revenues from the omnichain Juicebox V4's 2.5% fee. | +| **$NANA distribution** | JuiceboxDAO will start out with a large initial supply. JuiceboxDAO will operate the split and retain a percentage of supply as $NANA tokens are issued or bought back. | +| **Big bet** | As the omnichain Juicebox V4 ecosystem comes online and growth moves to it from V3, $NANA will benefit increasingly from fee income across all chains. The protocol takes a 2.5% fee from payouts and redeemed tokens of all projects. | +| **Edge** | If open source protocols with fees outcompete free alternatives and if governance is a burden to productivity, $NANA and JuiceboxDAO are uniquely positioned to capture revenue that regeneratively grows the wealth of its open source financial system. | +| **Risks** | Unlike V3, V4 has no TVL and has not facilitated high volume transactions. | + +### 3.3 $BANNY +| | | +|------|--------| +| **Site** | [https://banny.eth.sucks](https://banny.eth.sucks) | +| **Business model category** | Direct sales | +| **Organizational category** | Hybrid | +| **Value prop** | Captures revenues from [Bannyverse mints](https://mint.banny.eth.sucks). | +| **$BANNY distribution** | Banana Box Office Entertainment (BBO) & JuiceboxDAO will each start out with some initial supply. BBO will retain a percentage of supply as $BANNY are issued or bought back. | +| **Big bet** | Banny's relatability and bluntness can make him a modern internet icon, and the production team is ripe to make it happen. If Banny successfully makes modern tech culture's ambitions and hypocrisy relatable through the propagation of stories, assets, and values, the Bannyverse can accompany the growth of the post-platform internet.

In turn, JuiceboxDAO, $NANA, and $REV benefit from the productive use of its protocols and the distribution of a Banny brand that's rooted in Juicebox lore, from V4 activity that adds value to $NANA, and revnet activity that adds value to $REV. | +| **Edge** | If character-based storytelling is key to relatability, $BANNY and BBO are uniquely positioned to distribute the values that Banny has grown synonymous with over the years, while making the novel token-based concepts it's associated with approachable. | +| **Risks** | There's a sea of content out there, it'll likely take persistence and increasingly better writing to break through. | + +### 3.4 $SUCKS +| | | +|------|--------| +| **Site** | [https://eth.sucks](https://eth.sucks) | +| **Business model category** | Memetic | +| **Organizational category** | Onchain | +| **Value prop** | Captures memetic energy from the distribution of .eth.sucks links. | +| **$SUCKS distribution** | TBD. | +| **Big bet** | IPFS-based peer-to-peer websites are more resilient than centralized alternatives, making them an ideal fit to interact with permissionless smart contracts. These websites can be surfaced from any number of proxy links (eth.limo, eth.sucks, etc), but projects will usually commit to identifying with one such link in their marketing collateral. By choosing eth.sucks, they are propagating the $SUCKS meme, which in turn supports the proxy infrastructure's optimization and maintenance. | +| **Edge** | If links are where the innovation rubber meets the online distribution road, $SUCKS and the community supporting it are uniquely positioned to capture and recycle the memetic energy contained in domain sharing, while promoting decentralized values in a traditionally centralized value-capture bottleneck. | +| **Risks** | Maintaining an ENS proxy can be time consuming, expensive, and hard to automate. | + + +### 3.5 $CROPTOP +| | | +|------|--------| +| **Site** | [https://croptop.eth.sucks](https://croptop.eth.sucks) | +| **Business model category** | Direct sales | +| **Organizational category** | Onchain | +| **Value prop** | Collects a 2.5% fee from mints made from Croptop templates, a simple IPFS-based peer-to-peer website template with content feeds and revenue streams baked in. | +| **Big bet** | In order to be widely adopted, IPFS-based peer-to-peer websites need to be easy to deploy and easy to attach to ENS names. The croptop Mac app fulfills this ease.

As the template is increasingly used to onboard folks to the decentralized website stack and serve their content, $CROPTOP will benefit from a 2.5% fee taken on all mints originating from it. | +| **Edge** | If content propegation benefits from being collectable, $CROPTOP and the community supporting it are uniquely positioned to remove barriers from publishing and minting across any number of blockchains. | +| **Risks** | Croptop templates can be adapted and served as folks wish, there is no way to enforce the fee at a programmatic level. | + + +### 3.6 $DEFIFA +| | | +|------|--------| +| **Site** | [https://defifa.net](https://defifa.net) | +| **Business model category** | Direct sales | +| **Organizational category** | Hybrid | +| **Value prop** | Captures revenues from defifa prediction games. | +| **$DEFIFA distribution** | Defifa Ballkids & JuiceboxDAO will each start out with some initial supply. Defifa Ballkids will retain a percentage of supply as its issued or bought back. | +| **Big bet** | People enjoy playing games, making predictions, and being a part of cultural moments. Defifa allows prediction games to resolve based only on community engagement, no oracles necessary. The lack of a need for oracles means games can be created around any cultural moment at any time. Games can then be used as a fundraising or revenue component of other networks, adding dimension and interactivity to existing networks.

As more games are played, $DEFIFA will benefit from a 2.5% fee taken on all paid out funds originating from them. | +| **Edge** | If the need for oracles reduce the landscape of playable prediction games onchain, $DEFIFA and the Defifa Research Group are uniquely positioned to open up new niche prediction markets for communities to play that benefit players involved. | +| **Risks** | Defifa games lean on social consensus to determine outcomes. Games resolve based on the outcome agreed on by players, not necessary the actual real world outcome. Incentives are designed to align these two outcomes, but there are no guarantees. | + +### 3.7 $NANCE +| | | +|------|--------| +| **Site** | [https://nance.app](https://nance.app) | +| **Business model category** | Subscription fees | +| **Organizational category** | Onchain | +| **Value prop** | Brokers access to the nance service. | +| **$NANCE distribution** | TBD. | +| **Big bet** | Onchain organizations often rely on governance processes to make decisions regarding shared resources. Nance offers a unique take on governance that encourages scheduled deliberation and voting periods, adding structure that standardizes expectations therefore minimizing risks of neglect or abuse.

As more organizations use Nance to facilitate their governance process, $NANCE will benefit from a subscription fee that keeps each organization's instance of the service running. | +| **Edge** | If tokenized governance continues to be a sought-after coordination exercise for online groups, Nance has a strong track record of helping organizations manage millions of dollars and is uniquely positioned to guide folks towards best practices that encourage participation while avoiding pitfalls of power struggle. | +| **Risks** | Nance runs a server-based service, using crypto only for its users' data backups and for its own business model operations. This interaction of web2 and web3 is novel and lacks best practices, we're making intricate decisions involving tradeoffs as we develop tools such as Nance and revnets. | + +--- +Ethereum is one of a kind. We have incredible respect and gratitude for the work of our peers that make our contributions possible. + +![image](https://github.com/user-attachments/assets/38465715-5f4e-4c9d-8259-4595959447be) + +[^1]: Increased demand for mobility due to mobile productivity, ease of travel, internet-scale social networks, global media marketing, lifestyle desires, climate change risk mitigation, political preferences, the emergence of borderless money and identification, and likely other reasons. +[^2]: https://www.youtube.com/watch?v=D0ek2yv81Gk +[^3]: https://docs.uniswap.org/concepts/uniswap-protocol#order-book-vs-amm +[^4]: https://ethereum.org/en/developers/docs/evm/ diff --git a/pitch.md b/pitch.md deleted file mode 100644 index 8cdbd67..0000000 --- a/pitch.md +++ /dev/null @@ -1,355 +0,0 @@ -# Revnets -**Add value => grow revenue => become wealthy together.** - -> _This memo makes the case for revnets. It is delivered in 2 parts: the first part will quickly give context about the problem and how revnets are positioned to play a role in shaping the future. The second includes specifics of how you are invited to participate._ - -## Contents -1. [Part 1 – What's the big deal](#part-1--whats-the-big-deal) - - [1.1 TLDR](#tldr) - - [1.2 Overview](#overview) - - [1.3 Anatomy of a revnet | Introduction](#anatomy-of-a-revnet-intro) - - [1.4 Why now? Why us?](#why-now-why-us) - - [1.5 Call to action](#call-to-action) - - [1.6 Examples](#examples) -2. [Part 2 – What are the terms](#part-2--what-are-the-terms) - - [2.1 Anatomy of a revnet | Advanced](#anatomy-of-a-revnet-advanced) - - [2.2 $REV](#rev-1) - - [$REV stage 1](#rev-stage-1) - - [$REV stage 2](#rev-stage-2) - - [$REV stage 3](#rev-stage-3) - - [2.3 Revnet Research Group (RRG)](#revnet-research-group-rrg) - - [RRG Mission](#rrg-mission) - - [Bottom line](#bottom-line) - - [Structure](#structure) - - [Onchain management](#onchain-management) - - [Offchain management](#offchain-management) - - [Spend](#spend) - - [2.4 RF1](#rf1) - - [2.5 Investor FAQ](#investor-faq) - - [Should I invest in RRG, $REV, or...?](#should-i-invest-in-rrg-rev-or) - - [What are the risks I should be aware of?](#what-are-the-risks-i-should-be-aware-of) - ---- -![image](https://github.com/user-attachments/assets/da371e2b-e834-45ae-bd2e-db5242fc1dde) - -## Part 1 – What's the big deal - -### 1.1 TLDR - -Today's crypto, media, and AI networks have a business model problem, rooted in the tensions between open source productivity and private value capture. - -This has often led to misallocated resources and capital losses, while creators focused on long-term value creation are left with scraps. - -Revnets offer a promising solution, as a hands-free all-in-one tokenized incentive machine, cap table, and growth engine for leaders, workers, investors, and yesterday's customers that helped make today possible, while removing common causes of disputes between them. - -Revnets are an openly accounted-for standard that can motivate the funding and distribution of business offerings, open source projects, campaigns, indy media, and cultural movements without governance risks or management overhead. Simple enough for a group of friends, powerful enough for high net-worth, global communities, products, and brands. - -Join us – a group of active Web3 builders with vivid stories to prove it – in founding and growing the $REV network, which operates as a revenue-generating revnet itself. - -### 1.2 Overview - -Openly accounted-for fundraises and revenues should outcompete everything by enabling: - -- **Scaled Participation:** Global community with vested interests accelerates growth. -- **Full Transparency:** Public code and accounting is more trustworthy and easier to cooperate with. -- **Cost Efficiency:** Many managerial expenses are not needed when there are no secrets or artificial barriers to progress. - -They struggle to enforce revenue-generation to pay for innovation, maintenance, and growth due to three core dilemmas: - -- **Monetization Dilemma:** Establishing and justifying debt obligations, growth expenditures, and profit margins on revenue is difficult as an open business scales. -- **Moat Dilemma:** The strategies of open businesses can be copied without inheriting the baggage of the original, meaning cheaper alternatives can emerge easily, devaluing the various costs borne by the work's creation. -- **Dependency Dilemma:** Many profitable businesses rely deeply on open source components, yet don't have clarity on how to foster a productive financial relationship with their communities, or motivation to do so unless developed in-house. - -This makes realizing open ideals, especially for open source initiatives, reliant on free and inconsistent labor, donations, grants, or corporate sponsorship, when this should instead be the most investable and rewarding category of internet business. - -Blockchain agreements are the correct building block, but today's attempted solutions are incomplete and come with unsustainable tradeoffs. Businesses and investors currently have the following options for monetizing onchain: - -- **Liquidity farming:** Tokenized models marketed as open and yield providing, but with implicit or explicit backdoors for insiders to dump on retail once they've filled their bags. -- **Governance DAOs:** Tokenized voting systems that decide how raised funds and revenues should be spent, creating power struggles that get in the way of effective capital allocation. -- **Revenue sharing:** Tokenized guarantees that sales will be split between certain entities, but with no follow-on incentive for propagating network growth after fees have been extracted. -- **NFT memberships:** Rare tokenized artifacts whose value will speculatively increase as the issuing entity becomes popularized, but with no liquidity apart from pump and dumps. -- **Custom mechanisms:** Custom tokenization dynamic with a unique set of coded rules that attempt to fulfill a desired set of outcomes, but requiring everyone to learn a new jargon-filled system and trust that it is implemented bug free. -- **Grants and donations:** No tokenized monetization strategy, just builders and investors with an expectation that their value creation, if done openly, will be retroactively rewarded by altruists who benefited financially from the outcomes. - -We need a better place to put our money. A revenue-forward growth-oriented solution that is sustainable, reliable, and massively scalable to help every value-creating business with an online growth presence – local and global – realize their potential in the upcoming tokenized economy. - -We think revnets might be it: A win-win-win growth engine for investors, builders, and retail customers of open source and beyond. Built by developers who've helped facilitate over $185 million in ETH payments over their past 4 years of experience building, securing, and marketing Ethereum-based tokenization infrastructure. - -Revnets resolve the three dilemmas above by creating openly accounted-for financial networks with clearly bounded risks that reliably benefit those who pay fees, invest, help the network grow and stick around. They are great for startups overcoming the cold start problem, and a great exit strategy for established organizations such as governance DAOs like UNI, ENS, ARB, JBX, and others who prefer tending towards autopilot growth benefiting all members. - -Importantly, revnets aren't just an esoteric tool for obscure internet subcultures. Blackrock CEO Larry Fink and prominent others say the necessary and inevitable tokenization of everything will enhance the landscape of finance. We have understood this for years. We think revnets will participate in the mainstream's vision by being the most productive structure for both large organizations and small businesses to tokenize revenues, fundraises, and financial partnerships globally. Revnets are the SAFE and C-Corp agreements of this economy, but 100x better. - -We're deploying a $REV revnet that'll capture 2.5% of all funds cashed out from fundraises and revenues from all revnets. We invite you to take part in $REV, the first 90 days favor grassroots investors on equal terms. We're also supporting the launch of revnets for ten other spectacular projects we've been working with, showcasing how revnets are: - -- **Versitile:** This simple financial instrument has the power to support diverse applications. -- **Standardized:** They create a familiar business interaction standard, leading to a positive feedback loop for all revnet-based projects. -- **Interoperable:** They have the ability to relate financial outcomes between each other, encouraging more collaboration within a competative business landscape. - -Projects will choose a revnet business structure when they prefer their outcome to be oriented towards maximizing the network's self-propagation while minimizing the potential of any party with privileged access and exploitable liabilites. They'll understand their work to have value while also understanding a network's preference to work for itself once instigated, like Bitcoin and Ethereum. - -### 1.3 Anatomy of a revnet | Introduction - -Think of revnets like Bitcoin's halvening rule. Similar to Bitcoin, revnets are a fully pre-configured financial structure – although they can evolve over time, they do so according to rules that are set in place at the time of their creation. Unlike Bitcoin, instead of the rule being periodic supply shocks that lead to a fixed supply of 21m coins over time, revnets enforce a certain other set of guarantees. - -A revnet's guarantees are most simply described as a digital vending machine, whose sequence of enforced rules – how much things cost, how to get the money out – are set when it is created, and can't be changed after. Each vending machine has its own unique token that it issues when someone pays it, and only releases the revenue it has earned when its tokens are returned. A revnet's tokens are always backed by the underlying value of the revenue used to issue them. - -> For example, A revnet can be (1) paid in ETH (or other tokens), which (2) generates its own token – let's call it $REV – at a given price, say 1 ETH buys 1,000 $REV. A revnet can (3) have a split in place that automatically sends a percentage of these new $REV to a set of pre-established entities, say 20% split so that 100 $REV goes to two builders and 80% goes to the payer of the 1 ETH, which (4) stays in the vending machine. - -Screenshot_2024-01-21_at_17 59 01 -
-
- -> In order to get the 1 ETH back out, a $REV holder has to cash out, which incurs a tax. This means if (5) one of the builders wanted to cash out their 100 $REV right away, they would (6) get less than the proportional 0.1 ETH if a tax was in place, leaving revenue on the table for those who cash out later. The specifics of the issuance price, split, and cash out tax are set as a sequence of fixed-duration stages that are all specified when the revnet is deployed. - -Screenshot_2024-01-21_at_17 58 43 -
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- -This means revnets are: - -- **Governance-free**: Governance inefficiencies and takeovers of funds are impossible. -- **Management-scoped**: Revnets operate autonomously according to their pre-configured rules, scoping risks and making overreach impossible. -- **Liquid**: Revnets work with the open market to make and take liquidity, helping startups bootstrap growth and making market manipulation unfavorable. -- **Deterministic**: Investors, builders, community, and customers each act within a revnet's known rules, enforced programmatically from start to finish. -- **Familiar**: Transparency and diligence are simple. Once one revnet's workings makes sense, all revnets make sense. - -Revnets also inherit the best properties of Ethereum: - -- **Immediacy**: Encode sophisticated financial relationships between global participants with immediate settlement. -- **Clarity**: Allow for ownership and access rules that can't be subjectively misinterpreted. -- **Certainty**: Express and enforce clearly scheduled rules. -- **Auditability**: Impossible to hide, simplifying diligence for all participants. -- **Composability**: Easy, reliable, and open access to and from other smart contracts, including other revnets for interdependent accounting schemas. - -This was just the introduction. Part 2 of this memo digs in deeper, and discusses how we are tuning the $REV revnet for deployment. - -### 1.4 Why now? Why us? - -Those of us developing revnets have been contributors to the Ethereum ecosystem over the past 4 years, most notably having helped build the Juicebox protocol, the juicebox.money app, and the Juicebox DAO community driven by the $JBX network. Juicebox is public infrastructure that provides a tokenized language for expressing various organizational financial guarantees. It has been fundamental to the making of Constitution DAO, Assange DAO, Shark DAO, Moon DAO, Cryo DAO, Juicebox DAO, the Tornado Cash developer legal defense fundraiser, and 1,331 other projects, facilitating over $185 million in ETH payments. - -In this era of crypto, media, and AI networks that innovate on internet-native concepts, private corporate-stock models of centralized organization are anachronistic. We've experienced the demand for tokenized fundraising and revenue first hand, we know the tradeoffs of the tokenization tools at our disposal intimately well, and we know how cultural narratives around tokens work. We've been consistently one step ahead of the curve and steadfast in our values. - -We've also seen the negligence and gross extractive tendencies that over-leveraged entrepreneurs, investors, and traders can succumb to when left unchecked. Blockchains give us transactional freedoms – using them to progress positive-sum game-theoretic financial applications like revnets is non-trivial, while using them to manipulate the public with hyped-up zero-sum Ponzi schemes is easy and unfortunately all too common. - -Revnets are the next step. They are an expression of the Juicebox language we know so well, and the tokenized standard we're sorely missing to encourage more projects to hit the gas with confidence and without incumbent tradeoffs. - -Their time is now – revnets would be too fragile to exist if a rent-seeking fiduciary facilitating the handling of money and rules was required, and can only outcompete as an encoded contract between network participants enforced by the blockchain protocols of today. - -### 1.5 Call to action - -Revnets can power millions of startups to become global movements, high net-worth interconnected economies, and retail-owned brands that outcompete traditional private alternatives, meanwhile helping incumbent businesses transition to the more powerful open internet. - -With revnets, the open internet will win _because_ it best serves creatives, builders, investors, and consumers alike. - -We're calling on partners who believe in this revenue-forward version of the open internet to join the $REV network. The more we help each emergent revnet win, the more we win. Read Part 2 of this memo if you're leaning in. - -### 1.6 Examples - -In Part 2 we'll dig into how $REV is being tuned. - -Here are some other revnets we're helping launch this next year: - -| **Project** | **Description** | **Status** | **Link** | -|-------------|-----------------|------------|----------| -| $NANA | Captures revenues from the omnichain Juicebox v4's 2.5% fee. | Very soon | [nana.eth.sucks](https://nana.eth.sucks) | -| $BANNY | Captures revenues from Bannyverse mints. | Very soon | [banny.eth.sucks](https://banny.eth.sucks) | -| $NANCE | Builds the open-source Nance governance platform for tokenized communities. | Soon | [nance.app](https://nance.app) | -| $SUCKS | Captures memetic energy from the distribution of `.eth.sucks` websites. | Soon | [eth.sucks](https://eth.sucks) | -| $DEFIFA | Captures revenues from Defifa prediction games. | Soon | [defifa.net](https://defifa.net) | -| $CROPTOP | Collects a 2.5% fee on mints from Croptop sites. Croptop is a simple IPFS-based peer-to-peer website template with content feeds and revenue streams baked in. | Soon | [croptop.eth.sucks](https://croptop.eth.sucks) | -| $SPHINX | Builds the open-source multichain devops platform Sphinx. JuiceboxDAO uses Sphinx to manage contract deployments. | Soon | N/A | - ---- -![image](https://github.com/user-attachments/assets/01ba051e-cb0d-4364-8539-76199512eed6) - -## Part 2 – What are the terms - -There are a few entities at play: -- **$REV:** The revnet. -- **Revnet Reserch Group, LLC (RRG):** The split operator of the revnet to start. -- **Revnet Fund 1, LLC (RF1):** A fund that interfaces between traditional limited partners and onchain revnets. - -Before diving into each, it's first important to understand the how revnets works under the hood. - -### 2.1 Anatomy of a revnet | Advanced - -Each revnet stage specifies five rules which dictate everything about how it operates: - -| **Rule** | **Description** | -|---------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| -| **Duration** | How long does the stage last? A revnet’s final stage lasts forever. | -| **Price** | **Starting price:** How much does it cost to buy a single token when the stage begins? The payment's value stays within the revnet and can only be accessed by token holders who cash out.
**Price increase:** How frequently, and by how much, does the token's price increase within the stage? | -| **Split** | What percentage of token issuance (and buybacks) are set aside for a list of recipients, and which address is the split operator? The split operator can add, remove, or modify recipients on that list, changing how the split is allocated within the fixed percentage set for the stage. | -| **Automint** | How many tokens get minted to a list of recipients at the start of the stage? This functions like a "pre-mint" only accessible once the stage has started. | -| **Cash out tax** | How much does the revnet's next potential cash out value increase each time a token holder cashes out? | - -It inherits some useful properties from Juicebox V4: -- **AMM Liquidity:** If token holders add liquidity to an [AMM](https://docs.uniswap.org/concepts/uniswap-protocol#order-book-vs-amm) and it offers a better price than the revnet, the revnet will route incoming payments to that market instead of issuing new tokens. The revnet's split is applied to these buybacks as well. -- **Multicurrency:** A revnet can accept and hold any number of tokens, though it defines its price in one consistent currency. If it issues 1,000 tokens per ETH and the revnet is paid some USDC, tokens are issued given the current USDC/ETH price. The revnet can be set up to either hold the USDC received and allow its token holders to cash out from this balance, or auto-swap the USDC for an asset it prefers to hold. The network's tokens are backed by the tokens it chooses to hold, inheriting their risks and opportunities. -- **Omni-chain:** Revnets can grow to accept money on new [EVM-compatible networks](https://ethereum.org/en/developers/docs/evm/) as they emerge, and also offer cash outs on those networks. Holders can move their tokens between chains. When they do, the revnet automatically moves funds to back those tokens to maintain those tokens' value. - -Notice, revnets can be tuned to achieve various outcomes. They are not cheatcodes for entrepreneurs and investors lacking earnest real world insight, nor capital magnets for those expecting a free lunch. They still take strategy, risk, storytelling, and execution, amplifying those who follow through. - -Each revnet should consider its own unique circumstances when navigating the following tuning decisions: -- **Choosing a price:** revnets with infrequent and shallow price decreases leave room for more equal access over time to entice newcomers, but may lack energy from incumbent participants whose contributions are less recognized. -- **Choosing a cash out tax:** revnets with a larger cash out tax reward more committed participants, but give everyone less access to liquidity. -- **Choosing token distribution:** revnets with splits or automints can acknowledge the non-financial forms of participation which are often the subjects around which they revolve, but also can create scoped management burdens requiring more trust. - -There is no such thing as an apriori ideal tuning of a revnets rules, just as there was never an apriori perfect Bitcoin halvening timeframe or fixed supply number. A successful tuning is one that manages to convey the right incentives – either on purpose or on accident – to stimulate growth over time. - -### 2.2 $REV - -RRG is setting up $REV's revnet rules in hopes of emphasizing the following principles: -- **Simple:** Its rules should be easy to think about, with occasional important shifts that feel ceremonial. -- **Self-owned growth:** It should make sure all participants who will sustain its growth – investors, builders, storytellers, fans, donors, fee-paying retail consumers – feel like it benefits them. -- **Clear incentives, from startup to scale:** It should make both elders and newcomers feel like it acknowledges risks and contributions over time. -- **Inefficient rent seeking:** It should have a reliable immunity instinct that efficiently protects and rewards productivity. -- **Flexible:** RRG will steward a meaningful token split affording it some operational flexibility, which is a responsibility it can minimize and revoke down the road. It will assume some trust from supporters. - -#### $REV stage 1 - -_Price doubles every 90 days. 40% of issuance and buybacks to Revnet Research Group. Automint an initial supply to acknowledge pre-net work. Cashing out leaves money on the table._ - -| **Rule** | **Value** | -|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| -| **Duration** | 720 days (~2 years). | -| **Initial price** | 1 $REV costs 0.001 ETH. | -| **Price increase** | Doubles every 90 days. | -| **Split** | 40% split of issuance and buybacks operated by `rrg.eth`. | -| **Automint** | 69,000 $REV to `rrg.eth` for pre-launch work. | -| **Cash out tax** | Medium-high (0.6). The network consolidates when holders cash out. | - -> RRG can shape the split distribution within the hardwired 40% over time (or relinquish the power), and will receive the initial automint. Prospectively, the 40% split will have 27% routed to `rrg.eth`, and 13% to `dao.jbx.eth`. The 69,000 automint will have 25,000 sent to `dao.jbx.eth` (JuiceboxDAO), 10,000 to `breadfruit.eth`, 10,000 to `filipv.eth`, 10,000 to `codalabs.eth`, 4,000 to `openesquire.eth`, 2,000 to `kmacb.eth`, 2,000 to `0xba5ed.eth`, 2,000 to `noobwonder.eth`, 2,000 to [Peel](https://juicebox.money/@peel), 1,000 to `drgorilla.eth`, 1,000 to `peacenode.eth`, 500 to [Juicecast](https://juicebox.money/@juicecast), and 500 to LJ. - -##### $REV stage 2 - -_Starts 2 years after the revnet is deployed. Price continues doubling every 180 days. 40% of issuance and buybacks continue to Revnet Research Group. Automint a vested supply to acknowledge pre-net work. Cashing out still leaves money on the table._ - -| **Rule** | **Value** | -|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| -| **Duration** | 6,480 days. (~18 years) | -| **Initial price** | Where stage 1 left off. | -| **Price increase** | Doubling every 180 days. | -| **Split** | No change. 40% of issuance and buybacks operated by `rrg.eth`. | -| **Automint** | 127,000 $REV to `rrg.eth` for pre-net work. | -| **Cash out tax** | No change. Medium-high (0.6). | - -> Prospectively, the 40% split will be have 8% burnt, 20% routed to `rrg.eth`, 12% to `dao.jbx.eth`. The 127,000 automint will have 35,000 sent to `dao.jbx.eth`, 20,000 to `breadfruit.eth`, 20,000 to `filipv.eth`, 20,000 to `codalabs.eth`, 10,000 to `openesquire.eth`, 5,000 to `kmacb.eth`, 5,000 to `0xba5ed.eth`, 5,000 to `noobwonder.eth`, 5,000 to [Peel](https://juicebox.money/@peel), 1,000 to `drgorilla.eth`, 1,000 to `peacenode.eth`, 500 to [Juicecast](https://juicebox.money/@juicecast), and 500 to LJ. - -##### $REV stage 3 -_No more issuance. 10% of issuance and buybacks to Revnet Research Group. Cashing out still leaves money on the table._ - -| **Rule** | **Value** | -|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| -| **Duration** | Forever. | -| **Initial price** | 0. No more issuance. | -| **Split** | 10% of buybacks operated by `rrg.eth`. | -| **Cash out tax** | No change. Medium-high (0.6). - -> Prospectively, the 10% split will always be burnt. - -#### Accessiblity - -Anyone can pay into $REV at any time. It also is hardwired to receive a 2.5% network fee whenever someone cashes out from any revnet – thousands of digital vending machines plugged into the $REV vending machine. Both one-off payments and fees are treated the same and used to either issue new $REV from its revnet or buyback $REV from the market, depending on which is a better deal. - -We want to especially encourage investors to join who see potential use for revnets in other areas of their portfolios, and who can help the adoption of the revnet standard. - -Both token-comfortable people interacting directly from their favorite EVM blockchain, and token-curious people interacting using traditional methods through RF1, are welcome. - -### 2.3 Revnet Research Group (RRG) - -We'll use an LLC named RRG to support the revnet ecosystem and help it interface with conventional tech and finance sectors. - -We think it's important for RRG to set an example of how a corporate partnership can be successful as a scoped subcomponent of a public onchain revnet structure, in this case $REV. - -#### RRG Mission - -RRG will serve the growth and sustainability of open internet economies through revnets. We're shooting for $1 billion of assets locked in revnets in 4 years. - -In the short term, we need to make sure the upcoming revnets have a great chance at being wildly successful, delivering revnets as the clear vision of how wealth will be most productively created and distributed in our future. - -#### Bottom line - -RRG will achieve its mission in three ways: build and market a great [revnet.app](https://revnet.app) – the trusted web link to browse and participate in revnets through, leverage its $REV balance towards marketing and ecosystem development, and accelerating new revnets in dynamic ways. - -RRG will also have leverage to charge fees when facilitating access to revnets for traditional institutions. - -#### Structure - -RRG, LLC will be a Delaware-based entity primarily engaged in investing in $REV tokens and the development of the #REV ecosystem. The LLC will have four members: Jango, Filip, Aeolian, and KMac. Given its member-managed structure, these individuals will actively participate in the management and decision-making processes of the LLC, ensuring a hands-on approach to both investment strategies and ecosystem development. The primary business activities will include acquiring and holding $REV tokens, as well as fostering growth and innovation within the Revnet ecosystem through various initiatives and partnerships. - -#### Onchain management - -Onchain, RRG will manage its $REV with a 3/6 multisig at `rrg.eth`. The multisig is controlled by: - -- `breadfruit.eth` (jango) -- `filipv.eth` (Filip) -- `codalabs.eth` (Aeolian) -- `kmac.eth` (Kmac) -- `dao.jbx.eth` (JuiceboxDAO) -- `openesquire.eth` (Robert Leonhard) - -#### Offchain management - -Offchain management of the corporation will be led by Jango, Filip, Aeolian, KMac, Robert, and other members of the Juicebox community: - -[Jango](https://jango.eth.sucks) founded and has developed the [Juicebox](https://juicebox.money) protocol to support organizational money experiments on the public internet. - -[Filip](https://filip.world) has been working on Juicebox since November 2021, focusing on documentation, off-chain tools and services, and frontend development, as well as directly supporting many Juicebox project creators. - -[Aeolian](https://x.com/aeolianeth) has been working on Juicebox since November 2021, and leading the development of [juicebox.money](https://juicebox.money) since 2022. Aeolian also makes essential tools to support the Juicebox ecosystem: [juicescan.io](https://www.juicescan.io), the [Juicebox SDK](https://github.com/Bananapus/juice-sdk-v4), and the in-progress [revnet.app](https://revnet.app). - -[KMac](https://kmacb.eth.limo) is an experienced entrepreneur who has been contributing to multiple DAOs including Solace, Purple, Juicebox and Defifa. - -Robert Leonhard is the co-founder of [Open Esquire](https://openesq.tech), a group of legal engineers serving Ethereum projects and many Juicebox projects. - -#### Spend - -RRG will use the $REV it earns to support the launch, security, and marketing of revnet.app and associated revnets. We will staff jango (project/tech lead), filip (ops/tech lead), aeolian (consumer/tech lead), kmac (marketing/tech lead), and rob (legal). - -The technical and product todos include: -- iterate on revnet.app to best serve revnet participation and creation. -- standby for risk mitigation as the contracts gain legitimacy through use. iterate if necessary. -- build dev tools that make revnets easier to integrate within financial and white-labeled applications. - -The marketing todos include: -- tell the revnet story. -- support the success of the initial cohort of revnets by telling each of their stories. -- create a trustworthy brand. -- run a "This Ad is funded by a revnet" campaign, and other concepts. - -### 2.4 RF1 - -There will also be a Rev Fund 1, LLC, a Delaware-based private investment fund structured as a limited liability company. Its primary focus will be on investing in $REV projects, with an investment mandate managed by a registered investment advisor (RIA). The fund will target private investors who meet the standard accreditation and qualification criteria, complying with the 3(c)(1) exemption under the Investment Company Act. Capital will be raised through a private placement offering, with investors committing to specified minimum investment amounts. The RIA managing the fund will charge a 2% management fee, ensuring dedicated oversight and strategic investment in the $REV ecosystem. This fee structure aligns with industry standards, providing transparency and incentivizing effective fund management. - - - -Learn more and reach us from RRG at [rev.eth.sucks](https://rev.eth.sucks). - -### 2.5 Investor FAQ - -#### Should I invest in RRG, $REV, or...? - -There are four core entities in play: $REV, RRG LLC, RF1 LLC, and JuiceboxDAO ($JBX). - -- For those onchain, build direct exposure to $REV to benefit from revenue growth without proxies. -- RRG LLC is an operational group whose mission is to grow $REV. It is not directly investable. -- RF1 LLC is the only current way to access the ecosystem for participants who don't want to access tokens directly onchain. RF1 will facilitate revnet interactions on traditional investors' behalf, albeit for a management fee. -- Also for those comfortable accessing tokens onchain, $JBX is a fixed-supply governance token which has been on the market for several years, now utilizing its treasury to build out the Juicebox ecosystem – the revnet project and several others were informally incubated from within JuiceboxDAO. It is expected to receive a split of $REV issuance and buybacks, making it a great proxy to build ongoing exposure to $REV's revenue growth – albeit subject to the risks associated with each entity's governance process. You can learn more [here](https://docs.juicebox.money/dao/). - -#### What are the risks I should be aware of? - -**Smart contract risk**: Revnets are built using the Juicebox V4 protocol which can exist across multiple EVM blockchains. Though it is a fork and iteration of Juicebox V3 that secures tens of millions of dollars in locked value on Ethereum mainnet, there is the possibility of smart contract bugs that cause the system to collapse. JuiceboxDAO has spent the better part of the last year's time and budget on testing, documentation, and hiring third party auditors, though is always encouraging more eyes on the open source code base. Ultimately, smart contract security comes from production lindiness while managing funds at risk. - -**Organizational risk**: $REV runs on its own and has no organizational risk. RRG and $JBX on the other hand, do have organizational risks exposed through the same governance means that affords them certain flexibilities to pursue emergent opportunities. Engaging with either RRG or $JBX should warrant due diligence to understand how decisions have been made and how they'll likely continue to be made within those organizations. - -**Market risk**: RRG is a for-profit organization that will look to build its $REV exposure and harness its specialization in revnets to become successful. We believe revnets are marketable and can outcompete alternative organizational structures, but this is an unproven thesis with projects outside of our own. Choosing an organizational token structure is a big decision that each project tends to make only once and stick to forever afterward. It's hard to become the standard structure, but once the standard is set it tends to stick. At first, the revnet sales cycle will likely be long, we'll want to observe how the structure provides value both as a supportive component of already-existing organizations, and as the core piece of new orgs starting up. We'll lead the way with great examples of successful revnets folks can look up, starting with $REV, whose energy will help us reach critical mass. - -**Immutability risk**: Though a revnet's immutability is its core value proposition, some might also view this as a risk. A revnet is impossible to course correct once deployed and legitimacy has been established. Mainly, the $REV specification that determines issuance policy could turn out to not motivate activity as much as intended. A perfect revnet configuration is hard to know ahead of time, and there aren't many levers that expose control within its ruleset – like bitcoin, the hardcoded rules can only teleologically be deemed productive if the network proves itself in competition with forked alternatives. The two variables that do offer control and flexibility within the $REV revnet specs are the 38% split that rrg.eth will operate, and the autominted tokens. RRG can play a part in reorienting priorities using the split in order to stimulate some desired behavior, and can reasonably expect the autominted token holders to act in the best interest of the network's growth. - -[^1]: Other recent examples: the gig economy, DAOs, and remote work. -[^2]: [Uniswap](https://docs.uniswap.org/concepts/overview) raises funds and employs developers under the for-profit Uniswap Labs, but the Uniswap protocol is governed by $UNI token voting. The competing interests of token holders and Uniswap Labs have led to a number of controversial decisions over Uniswap's fee switch, source code licensing, and cross-chain deployments. Other projects have faced similar controversies when the interests of token holders and developers have diverged. - ---- - -Ethereum is one of a kind. We have incredible respect and gratitude for the work of our peers that make our contributions possible.