A decentralized platform for cooperative investments
Access to investments and to different funding means is most probably the biggest problem that cooperatives, social enterprises and peer to peer production projects have always faced.
The legal difficulties in investing in a coop without being a member, the scarce amount of tools in existence that allow people to do it, or the perception held by most investors that a cooperative or a social enterprise is not a good way to make money. These are some of the difficulties that cooperative entrepreneurs have working against them.
Ethical and cooperative banks are helping in this area, but they don’t invest in risky projects that are just beginning, or they lend only small amounts, which makes only small projects possible. This is one of the reasons why corporations dominate the global economy, although every day more people are turning to cooperative ways of organising.
To respond to this challenge, our mission is to create a platform that allows for investment in innovative cooperative projects and not-for-profit enterprises that are aiming to change the world.
The platform will be used to launch new cooperatives, with crowdfunded equity, as we are doing now with Bank of the Commons. Also after being created cooperativists will be able to use it to buy or sell shares to each other, improving the liquidity of the shares in coops, which usually is very problematic.
The platform aims to combine blockchain technologies and cooperative principles:
- One person one vote.
- When the coop grows in capital, the number of shares grow, rather than the value of these shares. When the coop decreases in value, the number of shares goes down, not the value of these shares. This also means that cooperative tokens can not be a speculative asset, which is the way things are at the moment with cryptoassets.
The same platform will be used for members of Bank of the Commons to buy and sell their own shares.