The FlexUp Economic Model
A new economic model,
to build a new world,
together
The FlexUp Economic Model promotes both wealth creation and fair distribution by aligning the financial interests of all project stakeholders –encouraging stronger and more sustainable collaboration.
Alginiging financial interests of all stakeholders ...
Many projects and companies fail not because of a lack of talent or resources, but because of internal conflict and misaligned incentives.
Collaboration is better than conflict. But how do you encourage collaboration?
FlexUp introduces a range of mechanisms to promote collaboration — some structural, some behavioral — including:
- creating a solid and standardized legal framework for all transactions,
- providing greater transparency through an affordable and easy to use app.
But the key underlying mechanism is aligning financial interests across stakeholders — enabling a model of shared pain and shared gain.
This ensures that everyone involved shares the outcome: if the project fails, all participants are impacted; if it succeeds, everyone benefits in proportion to their contribution and risk.
... through a common remuneration system
In line with the principle of non-discrimination, all participants — whether founders, employees, clients, suppliers, or investors — are paid through the same unified remuneration system.
They can choose how to split their remuneration across three priority levels*:
- Firm is paid first (low risk, monthly)
- Flex is paid next, if sufficient funds remain (medium risk, monthly)
- Credit is paid last, only if there is surplus cash (high risk, annual)
The more risk they take, the more Tokens they earn — defining your share in the project's profits and voting rights.
The FlexUp "Equity" includes Credits and Tokens, and relfect your investment in the project. You earn progressively based on your real contributions and the level of risk you take. The project's equity is calculated dynamically on a real-time basis.
* Note: This is a simplified overview. For full details, download the FlexUp Economic Model presentation from our downloads page.
Objectives
Simplicity
Make it easier to create, structure, finance, and manage your business using coherent frameworks, accessible tools, and a support network.
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.
Common Prosperity
Encourage a fair and transparent sharing of the wealth created among all your stakeholders.
Profitability
Support your business' growth and wealth creation by enhancing collaboration between all your project's 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: firm, flex and credit.
Rigour
Payments are made in a systematic way by priority level, using the cash waterfall principle: firm remuneration is paid first, flex next, and credit last, each within the limits of available cash.
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.
Fairness
Profits and voting rights are shared based on each participant’s actual contribution and accepted level of risk, using a unified and transparent token system.