There are a number of companies that funded themselves with an Initial Coin Offering (ICO). Some are just blockchain infrastructures themselves. We could follow their lead, where Finobra is an (economic) infrastructure funded by tokens. We’ll see…

This is the fundamental problem with any other system than democracy. This is likewise the fundamental problem with concentration of power. There is always some personal element that ultimately is a defect, no matter how well-intended.  That is why Finobra supports democracy, small enterprises, small investors.

Voting for projects and governance is by all token holders, but initially, the founders will control Finobra, mainly to guide and protect it. By design, this control will diminish over time, where Finobra will be entirely under democratic control.

But there is another reason for focusing on small and medium enterprises. Today, with relaxed regulation and anti-trust enforcement, enterprises are growing larger and larger. The larger they are, the more political power they wield. This trend is anti-democratic.

We at Finobra are strong supporters of democracy. We will not work in any country with an authoritarian or totalitarian system of government. We will avoid any projects that have an anti-democratic agenda. In general, Finobra is not political, but democracy underpins the Finobra philosophy and its economic ecosystem.

Apparently the term ecosystem is hardly new. Even now celebrities refer to their fan clubs as ecosystems, as in recent news about  Pacquiao. 

The definition of ecosystem is “a biological community of interacting organisms.” This stresses interconnection, and that is fundamental to Finobra.

The faddish popularity of cryptocurrencies is another problem we have to address. We have the same motivation as many other ICOs: to avoid venture capital and stockholder obligations. And once the ecosystem is flourishing, creating an internal medium of exchange that is widely accepted makes a lot of sense.

At this time, however, it makes more sense to use an existing platform. Because Finobra and FINCOIN are unknown, our currency could have zero value now and for a long time. So we need to rely on the blockchain infrastructure, nodes, stakeholders, exchanges.

I just stumbled onto Reuters Incubator, which offers funding and management consulting. This is much closer to Finobra’s mission. However, they are focused on technology only, whereas Finobra is much broader and small scale.

Finobra is made of many individual Enterprises. They range from very small to medium sized in any industry and may be startups or established businesses.  Finobra recognizes them as projects that need management and funding.  Each project is fully vetted and a business plan with white paper is written. All enterprises must commit to full transparency. They must conform to the rules and regulations of FInobra. This includes an unwavering commitment to strict ethics, sustainable development and environmental compliance.

Finobra is made of many small to medium Investors (SMIs). Minimum investment is $100. All investments are made by purchasing tokens in Finobra, known as FIN. The price of a token varies with the total net worth of Finobra, calculated by summing net present values (NPV) of all Enterprises. New projects are reviewed by Investors, who vote whether to accept the Enterprise into the Finobra ecosystem. Votes are counted by number of tokens owned. If approved by a majority of outstanding tokens, new tokens are issued to fund the Enterprise. Once the new tokens are sold, the project is funded. Since any new project must have positive NPV, new approved Enterprises increase the value of the FIN. Investments increase in value only as the FIN increases in value, dependent not on market speculation, but the total valuation of all Finobra Enterprises. New token issue is not dilutive because the total value of Finobra increases.

Finobra cannot function without the expertise of Facilitators. No project begins without the full participation of a Facilitator. In consultation with the Enterprise, the Facilitator writes a white paper, a business plan, projections to at least 5 years and an NPV. If the NPV is negative, or there arise concerns for success, the project is not approved by the Facilitator and will not be considered for vote. After a project is approved and funded, the Facilitator releases funds on a schedule specified in the business plan. The terms for management are also specified in the plan. Facilitators must be approved by vote of Investors and may themselves have also been funded by Finobra or may enter from outside and become part of the ecosystem. In this sense, they are licensed to operate, which may be removed by vote of Investors. Facilitators derive income from work done for the Enterprises. They may also create startups and present them for approval by vote of Investors.

Finobra cannot function without the work of the Foundation. Website development and maintenance is the responsibility of the Foundation. It writes the rules and regulations of Finobra and adjudicates any disputes. Additional software will be developed in the Foundation, especially research and development in artificial intelligence applied to the work of Finobra.