We've intentionally designed our business model to ensure that everyone wins, at every level.
The mutual thriving of our primary stakeholders — our investors, our members, our collaborators, the communities that we operate in, and our planet — is built upon systems of reciprocity and incentivized participation, creating a symbiosis that enhances the entire ecosystem.
Our simple investment strategy combines the latest decentralized finance (DeFi) innovations and fully-compliant investment instruments, which allows us to operate as if we were publicly traded while remaining privately held. Using this innovative instrument allows us to issue "securities tokens" (see FAQs) based on contributions that enhance the value of the network.
The real value of this economic model is that it allows us to share the success of Cohere with anyone who has contributed to the network — by issuing them shares ("tokens") in the company — without further diluting the company's equity pool. As we issue more tokens to our stakeholders, the greater the token value appreciates which creates a network effect that stimulates organic growth.
Here's how it works:
Members earn securities tokens based on their level of participation within the network (i.e. member dues, labor, skillshare, etc.)
Tokens are backed by the value of hard assets (land, infrastructure, farms, etc.) which provides stability and security, even in times of economic volatility
These asset-backed tokens appreciate in value as more tokens are issued — through capital or real estate investments, along with the aforementioned member activities
A percentage of annual profits are allocated to buy back tokens from members, providing a structured exit in advance of a liquidity event
Looking ahead, we will be issuing a stable coin (backed by the value of the securities token) that will become the means of exchange within the network
Want to print your doc? This is not the way.
Try clicking the ⋯ next to your doc name or using a keyboard shortcut (
Business Model