TrustRosie Explainer

The trust layer journey takes time and money. You can't buy time, but you can help your members make money.

TrustRosie Explainer: Partnership with Cooperatives

The following document provides comprehensive detail on how TrustRosie's Contributory Ecosystem Model, coupled with revenue-sharing mechanisms, aligns with the goals of cooperatives and membership organizations while addressing key funding challenges.

1. Funding and Operational Challenges for Cooperatives

Cooperatives and membership organizations face several structural and financial hurdles:

  1. Securing Initial Capital: A primary barrier to entry for platform cooperatives is the initial securing of funds, particularly because their mission often ideologically devalues generating profits for investor-stakeholders. Many organizations operate as all-volunteer efforts while trying to raise operational funding.
  2. Defining Legal and Revenue Structures: A core workstream for organizers is determining the optimal legal structure (or a network of legal entities), as no existing legal statute may fully support expansive global visions. The business model ties directly to the legal structure decision and how the cooperative will generate revenue to fulfill its mission.
  3. Establishing Early Competitive Advantage: In initial phases, cooperatives will likely have little or no pricing advantage compared to hyperscalers. Initial growth must therefore rely on trust network effects and the benefits of joining a decentralized trust network.
  4. Ecosystem Investment Strategy: Organizations can overcome initial funding challenges through ecosystem investment—operating on the principle of investing in commercial companies that build value-added products and services on top of trust infrastructure, providing startup capital (in the form of loans and/or grants) to the cooperative.

2. Alignment of TrustRosie's Business Model with Cooperative Models

TrustRosie's business philosophy, defined by its Contributory Ecosystem Model, inherently aligns with the democratic and patron-centric principles of cooperative structures, providing a solid foundation for shared goals and strategies.

Key Principles of the Contributory Ecosystem Model

The Contributory Ecosystem Model ensures that value flows to those who create it through five core principles:

  1. Contribution-Based Value Attribution - Every contribution has measurable value based on how it helps others
  2. Proportional Rewards (Return on Contributions) - Compensation is proportional to impact; rewards distributed based on relevance
  3. Self-Sustaining Economy - Contributors earn credits and revenue that reduce their own costs
  4. Transparency and Trust - All economics are transparent and verifiable with clear cost calculations
  5. Creator Control and IP Rights - IP creators maintain complete ownership and set their own licensing terms

This model naturally aligns with cooperative principles where economic benefits are allocated based on participation (patronage) rather than capital contribution, creating a self-funding ecosystem.

Intellectual Property Rights (IPR) and Creator Control

TrustRosie's stance on Intellectual Property strengthens the cooperative structure:

  • Creator Empowerment and IPR Revenue: IP Creators maintain complete control over their proprietary content and set their own AI Assistant hourly rate (just like their consulting rate). They earn prorated revenue each time the AI uses their content—calculated transparently based on response time and content proportion. This creates passive recurring income as others query the AI for their specialized knowledge.

3. The TrustRosie Ecosystem: Detailed Understanding

Understanding Member Roles (Cumulative Progression)

Member roles in the TrustRosie ecosystem are cumulative capabilities, not separate people. A single member can progress through all three roles over time:

All Members (Available Today):

  • Consume member-only content
  • Access licensed content they own

Contributors (subset of members):

  • All Consumer capabilities PLUS
  • Submit generic content
  • Earn Return on Contributions
  • Build reputation on leaderboard

IPR Owners (subset of Contributors - In Development):

  • All Contributor capabilities PLUS
  • Create IPR-protected frameworks
  • Set licensing terms and AI Assistant hourly rate
  • Earn licensing revenue

Key Insight: A single member can progress from Consumer → Contributor → IPR Owner. Many IPR Owners are also licensees of other members' content, creating a rich collaborative ecosystem.

Organizations & Licensing Models (Detailed)

Licensee Organizations (In Development):

  • Organizations that license IPR-protected frameworks for their use
  • Can be members who also contribute their own content and earn revenue
  • Cannot create derivative works or redistribute without additional licensing
  • Examples: Healthcare companies licensing compliance frameworks, consulting firms licensing industry-specific implementations, startups using frameworks for client work
  • Revenue Flow: When they query the AI, they pay TrustRosie Hourly Rate + IPR Owners' hourly rates for content used
  • Similar to: Proprietary software licenses - use for internal purposes, no redistribution or modification rights

Downstream Organizations (In Development):

  • Organizations with derivative work licenses allowing adaptation and redistribution
  • Can modify frameworks for their context and distribute to their members
  • Maintain upstream connection for automatic cascading updates via TrustRosie
  • Earn their own IPR revenue when downstream members use their derivative extensions
  • Examples: National → Provincial → Local associations, federated co-op networks, international chapters
  • Revenue Flow: Pay upstream TrustRosie Hourly Rate + Organization Hourly Rate + IPR Owners' hourly rates for all content used by their downstream members + Earn IPR revenue from downstream for their extensions
  • Similar to: GPL/ShareAlike licenses combined with franchise models - can adapt while maintaining upstream connection and sharing improvements

Real-World Example: Regulatory Specialist

A regulatory specialist creates a "Trust Layer + Compliance Framework":

Licensee Organizations Model:

  • Individual companies license for implementation (direct licensing fees)
  • Each company pays IPR Owner's hourly rate when using the AI with this content
  • Company cannot redistribute or modify the framework

Downstream Organizations Model:

  • Industry Association licenses with derivative rights
  • Association extends framework for sector-specific regulations
  • Distributes to member organizations
  • When member organizations query AI: Organization pays → Association Rate (for their extensions) → Association pays → Specialist Rate (for base framework) → Organization Rate (for core) + TrustRosie Rate for AI Assistant

Cascading Benefit:

  • When specialist updates regulations → Association's content auto-updates → All downstream organizations immediately benefit in their AI queries
  • No manual re-implementation needed
  • Everyone stays current automatically

Familiar Models Comparison

This licensing approach combines proven concepts:

Like Open Source Software:

  • IPR Owners create frameworks (like maintainers)
  • Licensees use them (like MIT license users)
  • Downstream extends them (like GPL forks)

Like Franchise Systems:

  • National creates standards
  • Regional adapts for local needs
  • Local implements for members

TrustRosie's Innovation:

  • Automatic cascading updates via TrustRosie
  • When upstream content improves, all downstream organizations immediately benefit in their AI queries without manual re-implementation
  • Unlike franchises (manual updates) or open source (forked versions that drift), TrustRosie keeps the entire ecosystem synchronized automatically

4. Synergy: Governance Operationalization and Commercial Opportunities

The capabilities offered by TrustRosie's Governance Operationalization Service create substantial commercial synergy with the mission of building coherent governance structures for digital trust ecosystems.

Governance Frameworks and Derivative IPR

TrustRosie transforms governance principles into actionable, reusable frameworks that create commercial opportunities:

  • Operationalizing Governance: TrustRosie's content harmonization enables members to transform monolithic governance documents into adaptable, operational packages
  • Derivative IPR Licensing: Members can create specialized governance frameworks, license them to organizations, and earn revenue when their frameworks are used or extended
  • Automatic Change Management: Upstream governance updates cascade downstream automatically via TrustRosie, keeping all implementations synchronized without manual re-work

Productization and Licensing Opportunities

  • Productization for Resale: Organizations can productize TrustRosie and its knowledge base for resale or franchise additional co-ops
  • Derivative Work Licensing: Downstream organizations extend upstream frameworks and earn revenue while benefiting from automatic updates
  • Ecosystem Focus: Enriching members' ecosystems creates collaborative environments where all participants benefit from shared knowledge

5. Revenue Sharing Model (Detailed)

The partnership between TrustRosie and organizations includes multiple revenue-sharing mechanisms that create sustainable income:

TrustRosie AI Assistant Revenue Share

  • Hourly Rate Revenue: When members use the AI Assistant (pay-per-use hourly rate model), the organization receives a percentage of the revenue generated from these usage fees
  • Recurring Income: This creates a recurring revenue stream for the cooperative as member usage grows
  • No Infrastructure Cost: Organizations benefit from revenue without managing AI infrastructure or tokens

IPR Usage Revenue Share

  • Usage-Based IPR Revenue: IPR Owners set their own AI Assistant hourly rate. When licensees query the AI using IPR content, IPR Owners earn prorated revenue (e.g., 30 seconds × 100% IPR content × their hourly rate)
  • Organization Receives Revenue Share: The organization receives a percentage of IPR usage revenue generated through the ecosystem
  • Cascading Revenue: As downstream organizations extend and license derivative works, organizations continue to receive revenue share from the upstream intellectual property
  • Passive Recurring Income: This creates passive recurring income streams for both IPR Owners and the cooperative as the ecosystem grows—revenue earned without additional active work

Detailed Revenue Flow Example

Scenario: Local Co-op member queries AI about industry best practices

Content Used in Response:

  • National Association's framework (50% of content)
  • Provincial extension (30% of content)
  • Local implementation (20% of content)
  • Response takes 30 seconds (0.5 minutes)

Revenue Distribution:

Member Pays:

  • TrustRosie Hourly Rate: 0.5 min × $60/hour = $0.50
  • National IPR Rate: 0.5 min × 50% × $180/hour = $0.75
  • Provincial IPR Rate: 0.5 min × 30% × $150/hour = $0.375
  • Local IPR Rate: 0.5 min × 20% × $120/hour = $0.20
  • Total: $1.825

Revenue Distribution:

  • TrustRosie Operations: Receives portion of $0.50 (infrastructure, AI costs)
  • Host Organization: Receives revenue share % from the $0.50 TrustRosie Hourly Rate
  • National Association: Receives $0.75
  • Provincial Association: Receives $0.375
  • Local Co-op: Receives $0.20

Transparent Revenue Distribution

  • All revenue sharing is calculated and distributed using TrustRosie's transparent economics model
  • Members can track exactly how their contributions generate revenue for themselves and the cooperative
  • The cooperative's revenue share supports operations without requiring traditional investor funding

6. User Stories

Actors: Site Visitor, Member: Content Submitter, Member: IPR Owner, Member: Ecosystem Builder

User Story 1: Site Visitor - Learning About the Platform

As a site visitor, I want to learn about TrustRosie and its mission, so that I can understand how it aims to create a digital utility based on trust and cooperation.

This can be enabled by the organization providing their own AI Provider tokens (Bring-Your-Own-Token) and drawing on their account to pay per use of AI Assistant services. TrustRosie can enable public read-only content for non-members, with members paying for enhanced services and contributions.

User Story 2: Member: Content Submitter - Contributing Knowledge

As a member and content submitter, I want to contribute my knowledge and expertise to the organization, so that I can build my reputation and be fairly rewarded through Return on Contributions.

User Story 3: Member: IPR Owner - Licensing Intellectual Property

As a member and IPR owner, I want to maintain control over my intellectual property and set my own AI Assistant hourly rate, so that I can earn income when others benefit from my specialized knowledge.

User Story 4: Member: Ecosystem Builder - Leveraging Governance Frameworks

As a member and ecosystem builder, I want to leverage existing frameworks to create specialized solutions for my community and earn revenue when others use my extensions.

7. Early Adopter Advantages

For Individual Members and Service Providers

  1. Reputation Compounds - Leaderboard visibility, inbound inquiries, speaking opportunities
  2. Content Network Effects - Your contributions become foundations others build on
  3. Relationship Capital - Connect with core team and other specialists
  4. First-Mover Visibility - Establish authority before market gets crowded
  5. Revenue Priority - Early contributions capture licensing revenue as market grows

For Associations and Communities

  1. First-Mover Authority - Establish your association as THE experts for your domain
  2. Ecosystem Ownership - Your frameworks become foundations others build on
  3. Member FOMO - Attract members who see contribution opportunities
  4. Revenue Priority - Early specialization captures licensing as market grows
  5. Competitive Advantage - Build network effects before competitors enter

8. TrustRosie's Business Model Summary

Component Description
Contributory Ecosystem Model Participants contribute knowledge and IP, earning time-credits and IPR revenue based on their contributions.
Proportional Rewards (RoC) Rewards are distributed based on the relevance and impact of contributions.
Self-Sustaining Economy Contributors earn time-credits that reduce future costs, promoting a self-funding model. Credits can be gifted to other members or used to incentivize new members to join.
Transparency and Trust Transparent economics enhance accountability and build trust within the ecosystem.
Intellectual Property Rights (IPR) Creators maintain control over their content and earn income through licensing.
Governance Operationalization Transforming governance principles into actionable processes, enabling derivative IPR licensing and revenue sharing.
Revenue Sharing Organizations receive percentage of AI Assistant hourly rates and IPR licensing fees, creating sustainable cooperative income.
Productization and Licensing Opportunities for productizing TrustRosie and its knowledge base for resell, creating additional revenue streams.

9. Pricing Model

  1. Bring-Your-Own-AI-Provider - Pay for platform access only
  2. TrustRosie AI Assistant Hourly Rate - Pay per use (organization receives revenue share)
  3. IPR Licensing Fees - Ecosystem-wide licensing (organization receives revenue share on upstream content)

10. Conclusion

Volunteers need incentives to stay engaged in long-game ecosystems. So let's focus on the short game, make the Journey the Product, and incentivize members to contribute so they too can prosper along the way, leading to a future of shared prosperity and growth. Through TrustRosie's revenue-sharing model, cooperatives generate sustainable income from both AI Assistant usage and IPR licensing fees, creating a truly self-sustaining ecosystem.

Next Step: Schedule a call to learn how we can get started now!

Learn More: 1-Pager | Contributory Ecosystem Model | Service Provider Specialization | Ecosystem Specialization