The Continuous Organization model has been gaining strong interest in the crypto community lately. It allows organizations to set themselves in continuous fundraising mode while benefiting from solid and flexible community incentivization mechanisms.  Thibauld Favre (https://twitter.com/thibauld), who invented the Continuous Organization model, presents what Continuous Organizations are in detail and why they are a better way to raise funds than an ICO (or a traditional fundraising for that matter). You can learn event more about the Continuous Organization model in this Medium article: https://medium.com/@thibauld/introducing-continuous-organizations-22ad9d1f63b7 :)

1. Continuous Organizations
Reinventing the financial incentives of organizations
using Bonding Curves
@thibauld

2. Aligning interests in organizations is ! HARD !

3. An organisation success summarized
🚀=💡+💰+$ +💬+🍀
inspiring vision
strong team
adequate financing
healthy governance
a bit of luck

4. Success = repeatable business model
🚀=💡+💰+$ +💬+🍀🚀

5. Problem: it’s a very delicate balance...
🚀=💡+💰+$ +💬+🍀
💩 💀 💩 💀 💩 💀 💩 💀 💩 💀 💩 💀

6. 💩 💀 💩 💀 💩 💀 💩 💀 💩 💀 💩 💀
💡+ 💰+$ + 💬
....that can go off balance very quickly

7. 💩 💀 💩 💀 💩 💀 💩 💀 💩 💀 💩 💀
Unstable equilibrium between stakeholders
)
*
+
)*
💡+💰+$ +💬the entrepreneur(s)
the investor(s) the employees
the board

8. 💩 💀 💩 💀 💩 💀 💩 💀 💩 💀 💩 💀
Unstable equilibrium between stakeholders
)
*
+
)*
💡+💰+$ +💬the entrepreneur(s)
the investor(s) the employees
the board

9. 💩 💀 💩 💀 💩 💀 💩 💀 💩 💀 💩 💀
Unstable equilibrium between stakeholders
)
*
+
)*
💡+💰+$ +💬the entrepreneur(s)
the investor(s) the employees
the board
, the community

10. 💩 💀 💩 💀 💩 💀 💩 💀 💩 💀 💩 💀
Unstable equilibrium between stakeholders
) +* ++
Entrepreneur:
! Solve Problem
! Avoid dying
Employee:
! Have Purpose
! Maximize Compensation
Investor:
! Maximize ROI
! Minimize risk
,
Community:
! Get financially rewarded
! Build long-term wealth

11. Interests are aligned using company’s shares
*
+
)Common Stocks Preferred Stocks
Stock Options
😢 💩
legal entity
of the
organization
.

12. A common objective: Maximizing the upside
+
)**
+
)
😢 💩
.

13. The big problem: LIQUIDITY
How to turn this: ...into this?
😢 💩
.
💰

14. Without liquidity...
*
+
)Entrepreneurs can lose
everything until the last
minute
Investors need
disproportionate
governance rights
Employees get worthless
Stock Options
😢 💩
.So when bad news start coming...

15. The fragile alignment of interests evaporates
💩 💀 💩 💀 💩 💀 💩 💀 💩 💀 💩 💀
*
Entrepreneur:
! Focus on minimizing
downside vs maximizing
upside
Employee:
! Loses motivation
! Leaves company
Investor:
! Uses is governance rights
against founders
OR
! Writes off investment and
move on
)
/
+👇

16. ...and very often the startup death follows
💩 💀 💩 💀 💩 💀 💩 💀 💩 💀 💩 💀
*
💀
“Within 3 years, 92% of startups failed.”
Source: Startup Genome

17. 💩 💀 💩 💀 💩 💀 💩 💀 💩 💀 💩 💀
Can we design better organizations?
) +* ++
,

18. 💩 💀 💩 💀 💩 💀 💩 💀 💩 💀 💩 💀
)+*+++,
Can we design better organizations?
More inclusive?

19. 💩 💀 💩 💀 💩 💀 💩 💀 💩 💀 💩 💀
Can we design better organizations?
More robust?
)+*+++,

20. 💩 💀 💩 💀 💩 💀 💩 💀 💩 💀 💩 💀
Can we design better organizations?
More liquid?
)+*+++,

22. Continuous Organizations
! A better model !

23. Continuous Organization - Definition
A Continuous Organization is an organization that sets up a Decentralized
Autonomous Trust (DAT) and gives it value by funneling part or all of its present or
future cash-flows to it.
The DAT is a specific immutable smart-contract that implements a bonding curve
contract to automatically mint, burn and distribute fully digital security tokens (FAIRs)
that represent a claim on the future cash-flows handled by the DAT.

24. Interests are aligned using company’s shares
*
+
),
buy price function
sell price function
# tokens (supply)
Price
🧔
📄Bonding Curve
Contract
Organization
Community Investors Customers
Buy-back
reserve
Beneficiary
0 ETH
Treasury
100 ETH
Tokens
0 TOKEN

25. Initializing The Bonding Curve
*
+
),
sell price function
# tokens (supply)
Price
🧔
📄Bonding Curve
Contract
Organization
Community Investors Customers
Buy-back
reserve
(empty)
Beneficiary
100 ETH
50 TOKENS
90 ETH
buy price function
10 ETH
90 ETH
50 TOKENS
Tokens
Treasury

26. Buying Tokens
*
+
),
sell price function
# tokens (supply)
Price
🧔
📄Bonding Curve
Contract
Organization
Community Investors Customers
Buy-back
reserve
Beneficiary90 ETH
buy price function
100 ETH
30 TOKENS
180 ETH
50 TOKENS
Tokens
Treasury
20 ETH

27. Incentivizing Community
*
+
),
sell price function
# tokens (supply)
Price
🧔
📄Bonding Curve
Contract
Organization
Community Investors Customers
Buy-back
reserve
Beneficiary
buy price function
180 ETH
30 TOKENS
Tokens
Treasury
20 ETH
20 TOKENS
30 TOKENS

28. Selling Tokens
*
+
),
sell price function
# tokens (supply)
Price
🧔
📄Bonding Curve
Contract
Organization
Community Investors Customers
Buy-back
reserve
Beneficiary
buy price function
180 ETH
Tokens
Treasury
10 ETH
20 TOKENS
10 ETH
30 TOKENS
30 TOKENS

29. Purchasing a Product or Service
*
+
),
sell price function
# tokens (supply)
Price
🧔
Bonding Curve
Contract
Organization
Community Investors Customers
Buy-back
reserve
Beneficiary
buy price function
220 ETH
20 ETH
Tokens
Treasury
50 ETH
40 ETH
📄
35 TOKENS
5 TOKENS
35 TOKENS
5
TOKENS

30. Distributing “Dividends”
*
+
),
# tokens (supply)
Price
🧔
Bonding Curve
Contract
Organization
Community Investors Customers
Buy-back
reserve
Beneficiary
buy price function
120 ETH
120 ETH
Tokens
Treasury
📄
50 TOKENS
50 TOKENS
15
TO
KENS
100 ETH
sell price function
15 TOKENS

31. Continuous Organization - Benefits
1. 📈 Continuous Fundraising
2. 🏄 Fully liquid tokens
3. 🌳 Attractive to long-term investors
4. 💲 Cash-flow based tokens
5. 🤗 Permission-less, friction-less & supra-national
6. 💬 Governance agnostic

32. Continuous Organization - Next steps
Short term objectives:
1. 💾 Provide the community with a technical reference implementation
2. 9 Provide regulatory guidance to founders wanting to create Continuous
Organizations
3. 💰 Raise funds to develop the Continuous Organization ecosystem (no ICO)
4. 🔬 Strengthen and improve the theoretical foundation of Continuous
Organizations
5. , Foster the Continuous Organizations community worldwide

33. Continuous Organizations
Get the latest updates: https://c-org.co
Join the conversation: https://chat.c-org.co
Follow the memes: @ContinuousOrg