What Being The 99% Is All About
If you’ve been looking for a TL;DR of everything Common Wealth — well, here it comes. An All Street 101 just for you… and the rest of the 99%. 😉
What is Common Wealth
Common Wealth is a funds-based community investment protocol. Each fund has an investment thesis and rationale. This way, investors get exposure to diverse assets and opportunities, maximising any potential returns and spreading risk exposure. The ‘All Street’ Oracles refer projects to invest — vetted, early-stage deal-flow from top industry figures to each fund. Every time a project is referred it has been invested into by at least one of the Oracles. Core contributors work on the design of the CW protocol, giving life to community vision.
Why The $WLTH Token? What Is It And What Does It Do?
The Common Wealth System (DAS) is powered by the $WLTH utility token.
The absence of a central power requires a self-sustaining and self-contained incentive structure in order to function. The $WLTH token like all tokens is a representation of value within this system. In this case, it is your share of Common Wealth’s vision of equal access to opportunity for all.
All Street has strived for simplicity with a one token model. The $WLTH token is an ERC20 token running on Base Ethereum L2 blockchain. It is an asset without an issuer from day one — as we renounced ownership of the $WLTH token before IDO. There is a total max supply of 1 billion $WLTH tokens, but as of writing this, 4.2 million have already been burnt! By reducing the supply, the circular economy keeps giving back.
All non-investment financial transactions (rewards, staking, governance) are transacted in $WLTH.
$WLTH is used to:
- Earn passive income from Community Fund and protocol dividends
- Pay 1% royalty transaction fees on all $WLTH transactions (fuels the Community Fund)
- Reduce royalty fees on investment returns
- Participate in fund and protocol governance
- Deploy investment funds into Community Fund projects
- Pay contributors
- Earn rewards for participation, learning and promotion
Explain Funds To Me? What The Eff Is A Slice?
All investment funds are non-custodial smart contracts, which means that no central entity ever takes custody of the assets. The entire system is designed as permissionless and non-custodial, made possible by the Web 3 components of the technology stack.
Investors can get exposure to a diverse range of funds — themed funds, evergreen (fund of funds), a community fund — with more fund types and mechanics possible under several possible roadmap iterations.
How Do Funds Work?
Funding:
Investors use USDC directly or convert fiat to USDC via the available on-ramp (Know Your Customer (KYC) verification process may be required for fiat onramps).
Upon investment, a “Slice” (fund NFT) representing the investment share is minted and transferred directly to the users wallet. Slices can be fractionalised, transferred or traded at any time.
Project Sourcing:
Common Wealth’s ‘All Street Oracles’ refer early-stage investment opportunities to the funds on the platform that they or their respective companies have already vetted and invested into. As the name implies, the All Street Oracles are connectors of information between parts of the system.
Due Diligence, Community Input & Vote:
The Common Wealth community will be given the opportunity to conduct their own due diligence and express their preferences for projects to be included in the investment funds. A community vote (between co-investors) will be initiated, and following a successful completion, the project will either be included in one of the existing themed funds, or a new fund might be created.
Deployment:
Once the capital raise period concludes and the fund investment cap has been reached, the capital deployment period starts, with USDC transferred to the project in exchange for future token allocation.
Token Liquidation:
Based upon the agreed vesting schedule, an advanced token selling algorithm will be used to liquidate the project tokens into volume on the open market without impacting the tokens price.
Protocol Royalty Fee:
A 10% intellectual property royalty fee is charged on the invested capital and goes to a wallet that pays for maintenance and development of the protocol. This fee will be reimbursed back to the user/investor once the investment fund breaks even.
Profit Distribution:
Proceeds from the token liquidation are held in a smart contract until all of the current vested tokens are sold.
Once the fund breaks even (including repayment of the initial platform royalty), the profit distribution begins.
USDC temporarily held in the smart contract is allocated to slice holders after calculating the royalty fee, which ranges from 40% to 10% based upon the amount of $WLTH tokens staked during either the capital raise period or the capital deployment period.
Boom! Love It… How Do I Get Started?
The steps are simple!
- Create an account on the app
- Set up your wallet of choice and ensure you have USDC on Base at the ready. Heres a guide for you.
- If there is a fund open and in the Capital Raise Period, you can simply buy your desired amount by entering your investment appetite and checking out! Invest from as little as $20.
If all active funds are full, and you’re getting some FOMO, well here is where the brilliance of Common Wealth’s innovation, and web3, comes into play. You can purchase a Slice of your favourite fund off the secondary markets here:
And just hang tight, in a few short weeks, Common Wealth’s own specialised marketplace will be here to change the game for utility-based NFTs!
I Bought A Slice! — What's Next?
Welcome to All Street! Now the fun begins! Once you’ve got your shiny Slice in your wallet there are so many more exciting opportunities awaiting.
INVEST
- Be your own VC!
- Access a diverse portfolio of themed funds and groundbreaking projects.
- Invest in the best — early-stage deal flow from some of the top deal-makers in the industry.
- Fractionalise your investment and sell some or all of it at any time — always liquid!
STAKE
- Reduce fees on investment returns up to 80%!
- Stake $WLTH to qualify for rewards, promotions and more .
- Share in platform profits.
- Funded by transaction fees, the WLTH Fund gives 50% of profits to the community.
EARN
- Community is the core of Common Wealth, the more active you are the more you earn.
- Complete simple missions and earn points.
- Redeem points for tokens… or hold onto them and have your say in governance.
