Let’s get the legalese out of the way up front. Folds cannot be redeemed for, traded in for, nor converted to cash or cash equivalents. Any member, or group of members, discovered doing so will be subject to removal from 8fold and disqualified from future membership. 8fold cannot be held liable for members attempting to trade Folds for cash or cash equivalents.
To bring levity to an otherwise serious matter: Don’t be that person. It’s not worth it to you or 8fold.
Only members, partners, and practitioners earn Folds. The minimum number of Folds for each group is defined on the user-groups chapter of this handbook and the agreements for each in the Policy Palace.
If we view 8fold as a person, the practitioners, partners, members, and users act as the immune system, for better and worse. They can pressure people to come in or leave in accordance to various agreements. The users also afford 8fold the ability to act upon the outside world, which it could not otherwise do; so, they’re also the body.
The Fold System is a blend of the Limbic and Endocrine Systems. Or, if this analogy doesn’t work you, it’s a way to give 8fold the means to slow our ability to make bad decisions while maintaining the ability to recognize members for their individual contributions and trade. It solves multiple traditional business functions and problems without the overhead.
In some ways, the Fold System is 8fold, as a person. We are all 8fold as a coalition.
Let’s look at a transaction flow. You are a user.
- You purchase a $100 product from a practitioner.
- The practitioner gets $90.
- 8fold keeps $10.
- The practitioner also gets 10 Folds.
Let’s look at another transaction flow. You are a practitioner.
- You need graphic design work done.
- You barter with another member who’s willing to do the work for 10 Folds.
- You get the result, the other member gets 10 Folds.
Let’s say this bumps that member up to a new Fold level. You are that member.
- You go from a full fold to a double fold.
- 8fold performs a profit redistribution.
- The full fold value is $100, which you would have gotten as a full fold; however,
- you are now a double fold, which means you receive $200.
Now this is one simple example but hopefully you get the overview.
Note: A member cannot earn more than 20,000 Folds from monetary contributions within a given calendar year. Further, 8fold will not accept monetary contributions from a single member totaling more than $20,000 per calendar year.
Part of the balancing of the Fold System is that continued contribution is valued more than one-time contribution. So, let’s say you earn 20,000 Folds, which puts you at an Oct Fold. From the example of $100 for a Full Fold you would receive $800. Now, let’s say you never contribute again. In 40 months you would eventually not qualify for a redistribution. Further, after one month, you would drop to a Quad Fold, which means you would qualify for half the redistribution you previously did. Finally, after three months, you would drop to Double Fold for the next six months; and so on. We want to recognize the contributions of members even after they are no longer contributing, just not forever.
Revenue redistribution is only done if net profit is demonstrated.
There are two ways to earn Folds:
- monetary conribution, and
A recurring monetary contribution is made to earn Folds. If done through 8fold Link, Folds will be automatically added to your balance. If done through a service 8fold Link is connected to, Folds will be automatically added to your balance. If done any other way, you much notify the Fold so that the proper number of Folds can be added to your account.
Folds earned in a given month determine your Fold level for the following month. (Your first month is an exception to this rule.)
This is the typical path and the one viewed as having the least resistance.
A one-time monetary contribution is made. Similar to a subscription, donations will be converted to Folds in a similar fashion.
A one-time monetary contribution is made based on revenue earned by the practitioner. You provide a product or service to someone who pays, you decide to give 8fold 10%.
You can provide products or services to another member and trade Folds. These trades could affect the Fold level of the provider and receiver.
The ways in which you can earn Folds is subject to change regularly. The details are avilable to 8fold.link users.
|Level||Folds||Reimbursable||Decay Rate (months)|
|None||0 to 599||no||0|
|Quarter||600 to 1199||yes||12|
|Half||1200 to 2399||yes||10|
|Full||2400 to 4799||yes||8|
|Double||4800 to 9599||yes||6|
|Quad||9600 to 19999||yes||3|
For revenue redistribution to occur, 8fold must have:
- no debt, and
- a cash reserve of three times its average monthly expenses.
If a revenue redistribution is not possible, the decay rate does not apply.
8fold may be indebted in some way but that should not impact those who contribute time, energy, and money in support of 8fold. Further, choosing static reserve amounts is deemed untenible as monthly expenses could change dramatically over time. Finally, if 8fold owes money in the form of debt (leasing equipment counts as an expense), there is no revenue to redistribute.
This dynamic is meant to motivate members to create, look for, and offer ways to keep operating expenses low. Further, we hope to incentive collaboration to raise more revenue individually and contribute to the larger pot.
#Calculating the profit pool
If the above are in place and 8fold can consider executing a distribution 8fold takes the balance beyond the reserve, deducts the estimated expenses for the following quarter, and what remains is the profit pool from which to complete the distribution. For example, Quarter 1 to Quarter 2:
- Balance: $10,000
- Debt: $0
- Reserve: $3,000
- Estimated Q2 expenses: $3,000
- Profit pool: $4,000 ($10,000 - $3,000 - $3,000)
Every quarter, 8fold performs a financial review. If a net profit is demonstrated, a redistribution occurs to 8fold members based on Fold level.
#Scenarios and Equations
Who’s ready for some math!
Let’s say 8fold generates a net profit of $10,000. There are four members:
- John is Quarter.
- Suzy is Full.
- Jose is Double.
- Gita is Oct.
We calculate the value of a Full Fold reimbursement by calculating the Fold levels represented, then dividing net profit by that total:
$888 is what a Full Fold member receives ($10,000/11.25 - rounding down to the nearest dollar).
This means for our example members, we would have a redistribution of the following.
Note: This results in $10 being unclaimed from the profit pool, which is rolled into the next reimbursement cycle.
Let’s say you earn 20,000 Folds in one month, making you an Oct Fold. I earn 2,400 in the same month, making me a Full Fold. Let’s then say 8fold has the entire monetary equivalent in the profit pool: $22,400.
$22,400/9 = $2,488 for Full Fold.
I receive $2,488. You receive $19,904 ($2488 * 8). Thereby demonstrating it is possible to receive a higher redistribution than intially contributed. However, it most likely won’t be a lot depending on the scales we’re talking about.