1. The FlexUp Economic Model
The FlexUp Economic Model promotes greater shared prosperity through more effective collaboration and more equitable wealth distribution.
This is achieved through a common remuneration system that creates a greater alignment of financial interests between all project stakeholders.
This system allows each participant, whatever their nature or role in the project (managers, employee, supplier, client, investor) to choose how much risk they are prepared to take on their remuneration, by splitting it amongst several tranches of different priority levels: base (high priority, low risk), flexible (medium priority and risk), or equity (low priority, high risk).
The more risk you take, the more tokens you earn. Tokens define your share in profits and voting rights.
The FlexUp Economic Model
Objectives
Simplicity
Simplify the processes of creating, restructuring, financing and managing your business with well-designed frameworks, tools, and a network of professional services.
Collaboration
Reduce conflicts and encourage collaboration between all your project's stakeholders by following the principles of non-discrimination and by aligning financial interests.
Resilience
Make your business more robust by providing flexibility in your cost structure and by enhancing loyalty of your employees, clients, and suppliers.
Profitability
Support your business' growth and wealth creation by enhancing collaboration between all your project's stakeholders.
Common Prosperity
Encourage a fair and transparent sharing of the wealth created among all your stakeholders.
Principles
Non-discrimination
All participants (employees, investors, suppliers, clients...) are remunerated through the same mechanisms, no matter the type or form of their contribution or of their remuneration.
Flexibility
Each participant is free to choose how much risk they want to take by splitting their remuneration in different tranches, each with a different priority and risk level: base, flexible and equity.
Rigour
Payments are made in a systematic way by priority level, using the cash waterfall principle: base remuneration is paid first, flexible next, and equity last, each within the limits of available cash.
Fairness
Profits and voting rights are shared according to the contribution provided and the risk taken by each participant, measured using tokens.
Transparency
All participants can see in real time how the cash is used and how much equity they have in the project. The cash distribution is made on a clear and systematic basis.