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FAQs

Cohere Network

Last edited 924 days ago by Alex Kennedy.

Company & Team

How do you prove your legitimacy as a startup organization without a track record?

Team experience

Proof of concept experiences

Early traction based on future member interest and waitlist sign ups

How exactly is compensation for work-trade arranged?

(Who chooses the value or how is it dictated by the market if it’s not tied to the dollar anymore?)

Future speculation on the transition of the USD based economy is still being strategized.

Currently, compensation is based on market value for the skills being commissioned.

Where do you want to be in 5 years?

The intention of Cohere has always been to expand into self-sustainable villages, integrating commerce and industry into the site design in an intelligent and life-supporting way. Within the next five years, we anticipate our Ecuador site to have entered into this growth phase, while concurrently developing several additional Cohere locations.

Who competes with you? What do you understand that they don't?

Hacker Paradise, Outsite, Haven Villages, The Conduit, Sonder, etc.

https://airtable.com/shrRxKDRmKjHDSvP3⁠

⁠

How will you make money?

Memberships, rentals, affiliate fees, events, experiences

Security Tokens

What are security tokens, who is issuing them? Who else has used security tokens?

Security Tokens use an evolution of the

SAFE (Simple Agreement for Future Equity)⁠

that are a cryptographic representation of future equity

Cohere issues tokens at the point of investment or as compensation for increasing the value of Cohere

Currently there are 40+ other companies using this financial instrument. Although this is new to the investor world, Silicon Valley and other VCs are starting to take notice and see the huge potential of this process. Tim Draper invested millions of dollars into this financial instrument.

How are security tokens any different from normal issuance of shares in a company?

The only difference between the way we are raising money from a SAFE and a Rolling SAFE is the use of cryptographic tokens to represent that value of ownership in the Rolling SAFE.

The tokens provide a true dollar value of the ownership at any moment, allowing investors to know their ROI at any point in time.

Tokens also allow investors to have easy access to liquidity by being able to trade tokens on secondary markets like stocks.

What does my cash flow look like from day 0 onwards?

Cohere will offer buybacks of Tokens once profitable, currently estimated after year 5.

Investors will have their tokens locked for a period of 12 months as regulated by the SEC. After that initial lockup period investors can choose to sell their tokens on secondary markets.

What activities will be taking place on my property? Will I be able to continue my economically productive activity up if the location is not being used (e.g. renting the space out, etc…)?

As a partner location you will have full rights to use the property as you desire. And you have the right to exit the agreement and partnership with Cohere in exchange for an equivalent dollar value in tokens.

Cohere will provide our members access to partner locations based on availability and do all the marketing for that location, increasing brand awareness for the partner location and Cohere.

Owners of partner locations will retain the bulk of profits with a small percentage of profit going to Cohere. Owners will still be responsible for taxes and property management liabilities. If owners choose to step out of the operations role, Cohere can fill that role in exchange for a larger percentage of profit share.

How and when will the security tokens be issued? What are the limitations of the security tokens?

Tokens are issued at the completion of an investment. In terms of properties for partnership locations, once the property ownership is transferred into a partnership LLC then tokens will be issued to that LLC.

The original owner of that property can access those tokens after the initial lock up period of 1 year. If the original owner ever wishes to end the partnership they need to ensure the partnership LLC has an equivalent USD amount of tokens held in the LLC in order to transfer ownership back to the original owner.

What happens if I sell the security tokens? Who can I sell them to? What happens to the property if I sell a fraction of the tokens? Where can I sell them?

Selling the security tokens is the right of the holder and can be done so after the initial lockup period.

You can sell to anyone on secondary markets, AMMs like pancake swap, or to other members in Cohere.

If you sell a portion of the tokens held in the partnership LLC, you would only be required to replace them if you wanted to end the partnership and have your property returned to you in full, sole ownership. You would only need to replace tokens equal to the current assessed USD property value at the time of transfer.

How do you prevent the devaluing of tokens as more are issued/minted?

The mechanism behind token issuance is based on investments received. The tokens are allocated to a percentage of the company equity. As more tokens are minted, the share of future equity each token holder has is diluted but their total token value increases. As more people invest the price of each token increases.

Investment

As a non-US based investor - how are your contracts enforceable in my jurisdiction?

Contracts would be litigated via US laws

Non-US investors would operate under Reg S which allows for any international citizen to invest in a US based company

Practically speaking, what happens to my property once I invest it in Cohere?

Cohere will set up a joint venture/partnership LLC and the property will be invested directly into that LLC

The LLC will have the original owner and Cohere as equal owners of the LLC but the property investor will remain in first position on title and have first right of refusal in the case of sales and asset transfers.

The property will be used and marketed as a Cohere Partner location for members to book stays. Cohere will establish brand experiences and soft assets to create a continuity between direct Cohere locations and partner locations.

This will not necessarily change the look and feel of the property but offer up amenities and accommodations Cohere members expect to have at partner properties. .

What are the key risks I should consider when choosing to invest my assets into Cohere? How do you plan to mitigate these risks?

Key risk would include all the standard risks associated with property ownership and management.

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