[BBU] Business Model#4: Revenue Sharing Agreement

[aratibaliga]

As the consortium is a non-profit public trust organization, would any revenue earned over and above the operational expenses be shared amongst Founding Stewards/Stewards? If yes, do we have clauses drafted for the revenue sharing agreement between the Consortium and Stewards?

[vinomaster]

This is a question we will ask Sovrin Foundation or whomever manages our budget. Typically, a budget should include savings for a reserve fund which can be used for emergencies.

If the Consortium should fold, what happens to any reserves?

We need to remember that during course or lifetime of Consortium members may come and go. Prior participation should not entitle any member to a share of reserve disbursements if/when the Consortium is disbanded.

[bharatUSAA]

This would be a good problem to have. One model is a payback of the funds to participating members as a 'member savings fund' that reduces the annual dues accordingly. This can be after a minimum reserve fund amount is met, and any excesses returned to members.
If we invite investors to fund this, another model could be to create a separate for-profit entity that the investors invest in, and this entity helps the non-profit Bedrock consortium. Need some legal thought around this model.

[vinomaster]

Our charter (GF) needs to define what happens in case of closure of non-profit.

[vinomaster]

A Policy statement addressing this concern needs to be placed in the Charter of the Legal Entity. This Chart should be linked to within our Legal Constitutional docs.