The Rosie Ethos - Details

Comprehensive documentation of Rosie's ethos and the self-sustaining Key Performance Indicator (KPI) calculations supporting its business model

Rosie Business Model KPIs: Technical Documentation

Overview

Rosie operates on a Contributory Ecosystem Model where participants contribute content, intellectual property, and knowledge while being fairly compensated for their contributions. The system tracks four core Key Performance Indicators (KPIs) that reflect the economic flows within this ecosystem.

Core Ethos

Principle 1: Fair Value Attribution

Every contribution to the knowledge base has measurable value. Contributors are compensated based on how their content is utilized by others, creating incentives for high-quality, useful contributions.

Principle 2: Transparent Cost Distribution

All costs associated with AI services and intellectual property usage are transparently calculated and fairly distributed among participants based on actual usage patterns.

Principle 3: Time-Credit Meritocracy

Contributors earn time credits (RoC - Return on Contribution) when their content helps answer others' queries, creating a sustainable economy where knowledge sharing is directly rewarded.

Principle 4: Intellectual Property Respect

The system maintains clear boundaries between community contributions and licensed intellectual property, ensuring creators retain control over their proprietary content while enabling fair compensation for usage.

KPI Definitions and Calculations

1. Rosie Costs

Definition: Total cost incurred by a user for AI processing services.

Calculation:

  • Upload Transactions: (duration_in_seconds / 3600) × $25.00/hour
  • Query Transactions: Pre-calculated cost based on query complexity and processing time
  • Currency: CAD (Canadian Dollars)

Business Logic: Users pay for the computational resources required to process their content uploads and queries. The $25/hour rate reflects the actual cost of AI processing, storage, and infrastructure.

Example:

Upload: 180 seconds → (180/3600) × $25 = $1.25
Query: Pre-calculated based on complexity = $1.04
Total Rosie Costs: $2.29

2. IPR (Intellectual Property Rights) Costs

Definition: Amount paid by a user to license intellectual property from other contributors.

Calculation:

  • Sum of all IPR licensing fees from Query transactions
  • Rate determined by individual licensing agreements
  • Formula: (query_portion × duration_in_hours) × agreed_hourly_rate

Business Logic: When queries utilize licensed intellectual property, users pay the IP owners according to pre-negotiated licensing agreements. This ensures creators are compensated for their proprietary contributions.

Licensing Rate Examples:

  • Academic content: $35-40/hour
  • Commercial algorithms: $45-55/hour
  • Premium specialized IP: $60/hour

3. IPR Revenue

Definition: Income earned by a user from licensing their intellectual property to others.

Calculation:

  • Sum of all licensing fees received from other users' queries
  • Revenue = Sum of (other_user_queries utilizing this user's IP × licensing_rate)

Business Logic: IP creators earn revenue when their licensed content helps answer other users' queries. This creates incentives for contributing high-value, specialized knowledge while maintaining ownership rights.

4. RoC (Return on Contribution) Earnings

Definition: Time credits earned when a user's community contributions help answer other users' queries.

Calculation:

  • Measured in minutes of time credits
  • Earned when community contributions (not licensed IP) are utilized in query responses
  • Credits are proportional to the contribution's relevance and usage in responses

Business Logic: Contributors earn time credits that can be used to offset future Rosie costs. This creates a circular economy where helpful contributors reduce their own costs by helping others, encouraging knowledge sharing and community building.

Economic Flow Model

Revenue Streams

  1. AI Processing Fees: Users pay for computational resources
  2. IPR Licensing: Structured marketplace for intellectual property

Cost Distribution

  1. Infrastructure Costs: Covered by Rosie processing fees
  2. Creator Compensation: Distributed through IPR revenue and RoC credits

Value Creation Loop

  1. Contribution: Users upload valuable content
  2. Utilization: Content helps answer queries from other users
  3. Compensation: Contributors earn IPR revenue or RoC credits
  4. Reinvestment: Credits offset future costs, encouraging continued participation

Technical Implementation Details

Transaction Types

  • Upload Transactions: Content contribution events with duration-based costs
  • Query Transactions: Information requests with complex cost structures including Rosie fees, IPR costs, and RoC credit distribution

Cost Object Structure

{
  "rosie": {
    "cost": 1.0417,
    "currency": "CAD"
  },
  "iprCosts": [
    {
      "iprOwner": "UserB",
      "hourlyRate": 45.0,
      "portion": 0.3,
      "cost": 0.5625,
      "currency": "CAD"
    }
  ],
  "rocEarnings": [
    {
      "userId": "UserA",
      "portion": 0.4,
      "timeCredits": 0.6,
      "units": "minutes"
    }
  ]
}

Rate Configuration

  • Rosie Hourly Rate: $25.00 CAD
  • Default IPR Rate: $45.00 CAD (customizable per agreement)
  • RoC Attribution: 60% of query duration attributed to community contributions
  • Currency Standard: Canadian Dollars (CAD)

Fairness Mechanisms

Transparent Attribution

Every query response tracks exactly which sources contributed to the answer, enabling precise attribution of costs and credits.

Proportional Distribution

When multiple sources contribute to a query response, costs and credits are distributed proportionally based on each source's relevance and usage.

Agreement-Based Licensing

IPR rates are determined through individual licensing agreements, ensuring creators maintain control over their pricing and terms.

Time-Credit Sustainability

RoC credits provide a sustainable way for active contributors to reduce their operational costs while encouraging continued participation.

Ecosystem Benefits

For Contributors

  • Fair Compensation: Direct payment for IP usage and time credits for community contributions
  • Ownership Retention: Full control over proprietary content licensing terms
  • Sustainable Participation: Credits offset costs for active community members

For Users

  • Transparent Costs: Clear breakdown of all fees and their justification
  • Quality Incentives: High-quality content naturally rises in usage and attribution
  • Flexible Access: Choice between community contributions and premium licensed content

For the Platform

  • Self-Sustaining Economy: Participant fees cover infrastructure and creator compensation
  • Quality Assurance: Economic incentives naturally promote valuable contributions
  • Scalable Growth: More participants create more value for existing members

Governance Principles

Rate Setting

  • Infrastructure costs determined by actual operational expenses
  • IPR rates set through individual creator-user agreements
  • RoC attribution rates configured to balance contributor incentives with system sustainability

Dispute Resolution

  • Transparent transaction logs enable auditing of all cost calculations
  • Standardized agreement templates reduce licensing complexity
  • Clear attribution algorithms minimize disputes over contribution credit

Long-term Sustainability

  • Self-funding model reduces dependence on external capital
  • Creator retention through fair compensation
  • User retention through transparent value delivery

This documentation reflects the technical implementation as of August 2025. The business model continues to evolve based on participant feedback and ecosystem growth.