TOKENOMICS
The Crowdpunk DAO token with the token symbol $CrowdP gives users access to ownership, governance, and dividend rights. This page summarizes the tokenomics of $CrowdP — How to obtain, hold, or trade the token.
Disclaimer
Before you continue, Crowdpunk DAO does not provide legal, tax, investment, financial, or other advice. This summary is for informational purposes only and should not be construed as such. 
Nothing on this page constitutes a solicitation, recommendation, endorsement, or offer to buy or sell $CrowdP. All information in this summary is general and does not address the circumstances of any particular individual or entity. 
You alone assume the sole responsibility of evaluating the merits and risks associated with using any information here before making any decisions based on such information.​
PRIVATE LIMITED COMPANY
Crowdpunk DAO is wrapped into a private limited company.
Consequently, all its members (i.e., KYC-compliant $CrowdP holders) are official shareholders of the underlying company. Each DAO member owns 1 share out of 10,000 shares, which corresponds to 0.01% of the company's share capital and is also inserted into the official shareholders register.
The AoA (Articles of Association) and SHA (Shareholders Agreement) of Crowdpunk DAO specify that each shareholder's ownership, governance, and dividend rights are determined based on the number of $CrowdP they hold, not the number of shares they hold.
In this case, $CrowdP tokens act as surrogates for shares and determine the users’ allocation within the Crowdpunk DAO ownership, governance, and dividend rights. This arrangement between all of its members is legally compliant, sound, and enforceable.
CROWDPUNK DAO TOKENOMICS DIAGRAM
$CROWDP HOLDER TYPES
Crowdpunk DAO has four classes of $CrowdP holders, each with different rights and obligations. This diverse holder base allows for an inclusive and thriving community that supports the growth and success of Crowdpunk DAO.
CONTRIBUTORS
Contributors are the core members of Crowdpunk DAO. The time they contribute triggers the minting of $CrowdP. They have the most rights as shareholders, which also comes with the most restrictions.
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Here are the conditions to become a contributor
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- they must be KYC-compliant and entered into the shareholders register;
- they must be natural persons;
- they can invest time and receive $CrowdP in return;
- they can invest money and receive $CrowdP in return;
- they can propose new resolutions for consideration by the DAO;
- they have the right to vote on resolutions (based on the number of $CrowdP they hold);
- they have the right to receive profit share (based on the number of $CrowdP they hold);
- they have the right to buy $CrowdP from other contributors on the internal market at a fixed price 1 $CrowdP = 1 EUR;
- they can not sell $CrowdP on the secondary market without offering $CrowdP to other contributors at a fixed price 1 $CrowdP = 1 EUR;
- their $CrowdP is considered when calculating the allocation of the Crowdpunk DAO ownership, governance, and dividend rights between all it's members;
IMPACT INVESTORS
Very rare and specially negotiated persons whose investment has such and importance to Crowdpunk DAO that those persons have voting rights although they are not contributors.
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they must be KYC-compliant and entered into the shareholder register;
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they can be natural persons or entities;
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they can invest money and receive $CrowdP in return;
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they can propose new resolutions for consideration by the DAO;
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they have the right to vote on resolutions (based on the number of $CrowdP they hold);
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they have the right to receive profit share (based on the number of $CrowdP they hold);
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they can sell their $Crowd on the secondary market whenever they want.
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their $CrowdP is considered when calculating the allocation of the Crowdpunk DAO ownership, governance, and dividend rights between all it's members;
TRADERS
These are persons who have acquired $CrowdP for trading purposes from the secondary market and have no connection to Crowdpunk DAO (i.e, they are not DAO members or shareholder):
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they an apply to become investors;
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they can sell $CrowdP on the secondary market whenever they want.
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Their $CrowdP is not considered when calculating the allocation of the Crowdpunk DAO ownership, governance, or dividend rights between all it's members.
INVESTORS
This holder class is the entry point for everyone interested in participating in Crowdpunk DAO.
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they must be KYC-compliant and entered into the shareholder register;
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they can be natural persons or entities;
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they can apply to become contributors.
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​they have the right to receive profit share (based on the number of $CrowdP they hold);
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they can sell their $Crowd on the secondary market whenever they want.
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their $CrowdP is considered when calculating the allocation of the Crowdpunk DAO ownership, governance, and dividend rights between all it's members;
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​*It is important to highlight that the specific rights and obligations of each $CrowdP holder depend on their classification, not the fact of holding $CrowdP, nor the number of them.
$CROWDP MINTING PLANS
Typically, $CrowdP is minted once a month, based on time contributed to Crowdpunk DAO during the month. However, $CrowdP may also be minted on an ad-hoc basis upon monetary or in-kind investments made to the DAO.
$CrowdP is always directly minted to the person who contributed time or made the investment. There is no staking or reserve pool of $CrowdP, predefined allocation between team members/advisors/etc.
In practice, this means that the Crowdpunk DAO can mint $CrowdP only when value is added to the DAO. Whether it be contributed time or invested funds/assets. Consequently, $CrowdP minting is continuous and always happens when value is added.
There is neither an initial nor final $CrowdP supply. The number of $CrowdP in circulation will continue to increase as more value is created. In theory, this means the token supply is infinite.
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Please note that the potential token dilution is not a design flaw. It is a deliberate feature of the Crowdpunk DAO and its $CrowdP token.​
Crowdpunks’s tokenomic design aims to substitute founders’ agreements, reverse vesting contracts, and other instruments currently abused by founders, early investors, startups and VCs with simple rules based on fairness, sharing and rewarding value.
At first, it may seem unfair for early contributors or investors that their token holdings will be diluted. However, the motivation for this dilution is the assumption that an organization's economic success comes later in its life cycle.
The heroes of the Crowdpunk DAO are the contributors. This radical change will motivate everyone in the Crowdpunk DAO to remain committed to creating value instead of relying on their status to earn indefinitely from the system.
$CROWDP PERKS
$CrowdP tokenomics is designed to reward token holders for their roles in Crowdpunk DAO. It also aims to reward mostly KYC-compliant holders for their time contributions, foster active investor participation, and support the growth and success of the DAO to encourage trading activities from unaffiliated traders.
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CONTRIBUTORS
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- Ownership of the business they spend their time and money on;
- Directing the Crowdpunk DAO by voting on resolutions;
- Earning dividends from anual profits;
- They can trade a portion or all of their ownership rights at any time;
- In sub-optimal market conditions, contributors can redeem a portion of their $CrowdP against the Crowdpunk DAO's Trustworthiness reserve;
IMPACT INVESTORS
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Dividends from annual profits;
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Capital gains when the $CrowdP token rises on the secondary markets;
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As $CrowdP gives access to ownership, an investor can evaluate the actual value that Crowdpunk DAO creates and make investment and $CrowdP price decisions on the secondary market based on that.
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Directing Crowdpunk DAO by voting on resolutions.
TRADERS
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Freedom to make short or long-term investments through potential rises in $CrowdP price without any connection to Crowdpunk DAO
INVESTORS
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Dividends from anual profits.
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Capital gains when the $CrowdP token rises on the secondary markets;
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As $CrowdP gives access to ownership, an investor can evaluate the actual value that Crowdpunk DAO creates and make investment and $CrowdP price decisions on the secondary market based on that.
EVALUATING $CROWDP'S VALUATION
There is a clear distinction between the INTERNAL and EXTERNAL VALUE of $CrowdP. 


The internal value represents the total value that has ever been committed into the Crowdpunk DAO in terms of time or monetary contribution. On the other hand, the external value represents the value assigned by parties not affiliated with Crowdpunk DAO based on the value created and possible profits.
$CrowdP is accessible without limitations on the secondary market. Hence, anyone can evaluate the value of Crowdpunk DAO, potential dividends, or any other metrics to determine the token price of $CrowdP and trade it accordingly. 

This creates a scenario where the $CrowdP token price on the secondary market is different from Crowdpunk’s internal 1:1 ratio between $CrowdP and the Euro.
Internal Value = Total $CrowdP Supply x 1 EUR
External Value = Total $CrowdP Supply x Secondary Market Price
$CROWDP DISPOSAL
Crowdpunk DAO AoA (Articles of Association and SHA (Shareholders Agreement) enforce rules for the disposal of $CrowdP. Those rules depend on the holder’s classification:​
CONTRIBUTORS
Contributors are obliged to offer $CrowdP to other contributors at a fixed price of 1 CrowdP = 1 EUR before offering $CrowdP to the secondary market.
If a contributor is unable to sell their $CrowdP on the secondary market, they can redeem a limited number of their token against the Crowdpunk DAO’s Trustworthiness Reserve, which is filled from a share of annual profits and other monetary investments. Tokens redeemed in this manner are burnt.
INVESTORS, IMPACT
INVESTORS AND TRADERS
Investors, impact investors, and traders don’t have the right to acquire tokens from contributors at the internal fixed rate of 1 CrowdP = 1 EUR. They can not redeem their $CrowdP against the Crowdpunk DAO’s Trustworthiness Reserve. 

Instead, they have the freedom to trade their $CrowdP for the going rate in the secondary market. There are no vesting or similar rules related to $CrowdP unless specifically negotiated with an impact investor.
DISCLAIMER
The dual valuation system is an experimental approach, and it is uncertain how investors and contributors will act if the discrepancy between the internal and external value gets significant.
This potential discrepancy is also not a flaw. It is a deliberate feature that serves as an incentive for contributors to hold their $CrowdP rather than dispose of them shortly after minting.
Also, it enforces the “contributors first” approach, as the contributors will benefit from being able to sell the tokens, which represent the value they have added to the DAO, to traders for a higher price. On the other hand, traders will only pay a higher price for $CrowdP if the Crowdpunk DAO is actually successful and valuable, which incentivises contributors to perform.
​This approach also gives contributors a certain security against short-term market failures while preserving the classical logic that investors/traders bear more financial risk while also retaining their freedom to exit at any time, at any price.