In the previous section, I introduced the most likely first entrants into the spolu network as “the second and subsequent” spolus.
What about the first spolu?
The first spolu will be the spolu network itself. It will take a significant investment to set up this spolu. Here are some of the tasks:
1) Set up the legal rules for spolus.
2) Set up the accounting rules for spolus.
3) Set up the mechanism for spolu customers to record their spolu purchases.
4) Set up the mechanism for auditing spolus to ensure they abide by the spolu rules. If there are violations, there needs to be investigations and possible removal of businesses from the spolu network.
5) Set up the Spolu Exchange, where investors can sell and buy spolu shares. The Exchange could even be the second spolu, being fairly independent from the first spolu.
I will talk about all these features in later sections. But all this framework will need to be in place before the second spolu business can be accepted.
I’m estimating the first spolu will need $20,000,000 to launch. So many investors are required. Some of these investors will be altruistic; they will contribute funds to bring this new business model to the world. But there is also the prospect of a payout within five to ten years. Future profits would be the bonus.
The first spolu will not charge a fee to the new spolus. Rather the first spolu will get shares of the new spolu; I suggest about 2% of total holdings. When that spolu has its first profit distribution, some of those funds will flow into the first spolu. In essence, the first spolu should be earning profit distributions from thousands of spolus.
Some of that revenue will cover the expenses of running the spolu network. But the rest will go to profit distribution, which will include the spolus that have joined the spolu network.
For this first spolu, I recommend the profit distribution ratio be 2:1:1:1:1:1, reduced to 1:1:1:1:1:1 in 20 years to give incentive to find the investors for that $20,000,000.
Published on Medium 2024
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