Network/Journal/Network Community Two Layer Economics
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Entry 036

Two-layer economics — the network self-funds first, communities are a backstop

Date
2026-05-26
Status
Decided
Authority
Creator (governance-level)

Decision

The thing being built now — the structured, canonical franchise pages — is the network layer, not the communities. The economy is split in two:

  1. Network layer. The clean, centralized franchise data rendered as user-friendly canonical pages. These pages carry ads whose revenue feeds the network fund, link out to communities, and serve as the annotation source for community writing.
  2. Communities. A separate, feature-rich, modernized wiki-farm built on top of the network's clean data — largely a future layer (Entry 037 specifies how it is authored).

The fund model that governs them:

  • Network self-sufficiency first. The network fund (network-page ads + API licensing + other network revenue) must cover all network expenses on its own before anything is pulled from communities.
  • Community contribution is a backstop. Communities carry their own ads into their own treasury. Only when the network fund cannot cover expenses does the network draw a percentage from community treasuries — and a per-community ad toggle is therefore a governance lever.
  • A slush fund seeds new communities. Funded by a small guaranteed slice of network revenue plus a top-up from surplus, it fronts the one-time data-processing cost of onboarding a community (wiki import + franchise-data import) as a repayable advance, recouped from that community's treasury once it earns. The slush therefore revolves. Awards are sized by a rubric on expected network effects, with discretion.

Why

Network-self-sufficiency-first keeps communities unburdened until the network genuinely needs help — consistent with the welcoming, wiki-farm spirit, and with contributor ad sovereignty (Entry 005) and the revenue waterfall (Entry 004). The slush fund lets a new community start without immediately facing its own economics. Deferring the exact percentages until real per-franchise revenue and cost numbers exist avoids picking blind.

Open threads

  • The community-pull mechanism: how the backstop percentage is sized dynamically as costs and usage shift, and the trigger threshold (a recalculation engine).
  • The cost-overhead allocation model that feeds that recalculation.
  • Scholarship caps and rubric weights (config-level, not blocking).
  • How a community commissions and pays for a feature from its treasury.

Related

  • Entry 004 — Network Revenue Waterfall
  • Entry 005 — Contributor Ad Sovereignty
  • Entry 037 — the inline editor communities are authored in
  • G-006 — Platform economics (the specifics still to draft)
  • G-016 — Ad / monetization posture