"Decentralized Revenue Sharing Model for Collaborative Investments (DeReSMCI)"

[AlexShkor]

Title:

"Decentralized Revenue Sharing Model for Collaborative Investments (DeReSMCI)"

Abstract:

The invention presents a novel financing model designed for decentralized autonomous organizations (DAOs), enabling collaborative investments through an Income Share Agreement (ISA) mechanism. This model ensures equitable revenue distribution among investors based on their contributions, while preserving the decision-making autonomy and equity of the original DAO members. It introduces a dynamic, consensus-driven approach to evaluate and accept contributions, ranging from capital to skills and time, and implements a transparent, cap-based return mechanism to ensure fair investor compensation.

Components of the Invention:

1. Decentralized Evaluation Mechanism:

   • A blockchain-based system for evaluating and accepting investments (both monetary and non-monetary) through consensus among DAO members. This system ensures that only value-adding contributions are accepted.

2. Dynamic Contribution Tracking System:

   • Utilizes smart contracts to track the type, size, and impact of each contribution, adjusting each member's revenue share proportionally. This system is transparent and auditable in real-time.

3. Revenue Share Agreement (RSA) Smart Contracts:

   • Smart contracts that automatically enforce the terms of the RSA, distributing revenue to investors based on predetermined conditions, such as a fixed percentage of revenue until a cap is reached.

4. Cap-based Return Mechanism:

   • A feature within the RSA smart contracts that sets a maximum return limit (e.g., twice the invested amount) to balance investor rewards with the long-term sustainability of the DAO.

5. Transparent Reporting Interface:

   • A blockchain-integrated platform providing real-time access to investment, revenue, and distribution reports for all DAO members and investors, enhancing transparency and trust.

Applications:

• Startups and projects seeking equitable, non-dilutive financing methods.
• DAOs looking to incentivize and reward contributions from members and external supporters.
• Investors seeking opportunities with transparent, cap-based return mechanisms.

Advantages:

• Promotes a collaborative investment culture without compromising control.
• Ensures fair and proportional revenue sharing.
• Facilitates transparent and equitable decision-making.
• Attracts a diverse range of contributions beyond mere capital.

Patent Claims:

• The method for decentralized evaluation and acceptance of varied contributions.
• The dynamic contribution tracking and revenue distribution mechanism based on blockchain technology.
• The use of cap-based return mechanisms in an ISA context for DAOs.

This conceptualization combines the principles of decentralized governance with innovative financing mechanisms, offering a scalable model for future DAOs and collaborative projects. Before proceeding with a patent application, it's crucial to conduct a thorough patent search to ensure novelty and consult with a patent attorney to navigate the complexities of patenting software and financial models.

[AlexShkor]

// SPDX-License-Identifier: MIT pragma solidity ^0.8.0;

contract DeReSMCI { address public owner; uint256 public totalRevenue = 0; uint256 constant capMultiplier = 2; struct Investor { uint256 amountInvested; uint256 cap; uint256 amountReturned; }

mapping(address => Investor) public investors;
uint256 public totalInvested;

// Events
event InvestmentReceived(address investor, uint256 amount);
event RevenueDistributed(uint256 totalRevenueDistributed);
event InvestmentReturned(address investor, uint256 amountReturned);

constructor() {
    owner = msg.sender;
}

// Modifier to restrict functions to the DAO owner
modifier onlyOwner() {
    require(msg.sender == owner, "Only the DAO owner can call this function.");
    _;
}

// Function for investors to invest
function invest() external payable {
    require(msg.value > 0, "Investment must be greater than 0.");

    if(investors[msg.sender].amountInvested == 0) {
        investors[msg.sender].cap = msg.value * capMultiplier;
    }

    investors[msg.sender].amountInvested += msg.value;
    totalInvested += msg.value;

    emit InvestmentReceived(msg.sender, msg.value);
}

// Function to add revenue (only DAO owner can call)
function addRevenue(uint256 _amount) external onlyOwner {
    totalRevenue += _amount;
    distributeRevenue();
}

// Private function to distribute revenue among investors
function distributeRevenue() private {
    uint256 totalRevenueDistributed = 0;

    for(uint256 i=0; i < totalInvested; i++) {
        // Simplified distribution logic
        address investorAddress = address(uint160(i)); // This is a placeholder logic to iterate over investors
        Investor storage investor = investors[investorAddress];

        // Calculate the share of the revenue for this investor
        uint256 investorShare = totalRevenue * (investor.amountInvested / totalInvested);

        // Ensure we do not exceed the cap
        if(investor.amountReturned + investorShare > investor.cap) {
            investorShare = investor.cap - investor.amountReturned;
        }

        // Transfer the share to the investor
        payable(investorAddress).transfer(investorShare);
        investor.amountReturned += investorShare;
        totalRevenueDistributed += investorShare;

        emit InvestmentReturned(investorAddress, investorShare);
    }

    emit RevenueDistributed(totalRevenueDistributed);
}

// Function to withdraw contract balance (for DAO expenses, etc.) by the owner
function withdraw(uint256 _amount) external onlyOwner {
    require(_amount <= address(this).balance, "Insufficient balance.");
    payable(owner).transfer(_amount);
}

}