Self-Sustainability
The Goal: Month 18
Nonterritorial is designed to achieve operational self-sustainability by Month 18.
Self-sustainability means: Operating costs covered entirely by network revenue, with no dependency on external funding, grants, or donations.
This isn't a stretch goal—it's an architectural requirement. Cultural infrastructure that depends on perpetual fundraising isn't infrastructure. It's a project.
Path to Self-Sustainability
Funding Phases
Phase 1: Seed Funding (Months 0-12)
External funding covers:
Smart contract development and audits
Platform development
Initial team
First exhibitions commissioned
Host network development
Target raise: €650,000
Phase 2: Hybrid (Months 13-18)
Network revenue grows while seed funding depletes:
Revenue begins covering partial operations
Continued development investment
Network effects accelerate
Phase 3: Self-Sustaining (Month 18+)
Operations covered by 15% operational allocation:
No external funding required
Surplus funds commissioning
Growth becomes organic
The Math
Monthly Operating Costs (Mature Network)
Technical infrastructure
€8,000
Platform development
€15,000
Support staff
€12,000
Security/audits
€5,000
Legal/compliance
€4,000
Administration
€6,000
Total
€50,000
Revenue Required for Self-Sustainability
Operations receive 15% of revenue.
How We Get There
Exhibitions
25
50
80
Active hosts
150
350
600
Monthly licenses
40
100
180
Avg fee
€2,500
€3,000
€3,200
Monthly revenue
€100,000
€300,000
€576,000
Operations (15%)
€15,000
€45,000
€86,400
By Month 18, operational revenue approaches operational costs. By Month 24, comfortable surplus.
Operating Model
Cost Structure Philosophy
Lean by Design
We're not building a startup to flip. We're building infrastructure to last. This means:
No bloated team for growth theater
No expensive offices
No marketing spend for vanity metrics
Technology choices that minimize ongoing costs
Quality Where It Matters
We don't cut corners on:
Security (multiple audits, ongoing monitoring)
Artist payments (always instant, always full)
Platform reliability (proper infrastructure)
Support quality (real humans, responsive)
Operational Reserves
Self-sustainability includes reserves:
Operating Reserve
6 months of operating costs
~€300,000 maintained
Covers revenue fluctuations
Security Reserve
Smart contract bug coverage
€200,000 maintained
Insurance for unforeseen issues
Development Reserve
Platform improvements
€150,000 maintained
Non-critical but valuable features
What Happens to Surplus?
When revenue exceeds operating needs:
First: Replenish reserves to target levels
Second: Additional funds to Commissioning Fund
Third: Reduce fee structures (if sustainable)
Fourth: Expand support/features
Surplus never becomes profit distribution. The Foundation is non-profit.
Sustainability Metrics
Key Performance Indicators
Revenue Health
Monthly recurring revenue (MRR)
Revenue growth rate
Revenue per exhibition
Geographic revenue distribution
Cost Health
Operating costs as % of revenue
Cost per license processed
Technical infrastructure efficiency
Support cost per host
Sustainability Ratio
Target: 1.3+ by Month 24 (30% buffer)
Monitoring Dashboard
Public dashboard showing:
Current sustainability ratio
Revenue trends
Cost breakdown
Reserve levels
Projection to self-sustainability
Transparency builds trust. Everyone can verify we're on track.
Risk Mitigation
Revenue Risks
Slow host adoption
Aggressive early host development, geographic diversity
Low license renewal
Focus on host success and satisfaction
Economic downturn
Geographic pricing ensures global accessibility
Competition
Unique value proposition, network effects
Cost Risks
Technical debt
Quality-first development, regular refactoring
Security incident
Audits, insurance, reserves
Regulatory change
Legal monitoring, compliance investment
Team turnover
Documentation, knowledge sharing, fair compensation
Scenario Planning
Pessimistic Scenario
Adoption 50% below projections
Self-sustainability delayed to Month 30
Mitigation: Reduce non-essential costs, seek bridge funding
Optimistic Scenario
Adoption 50% above projections
Self-sustainability achieved Month 12
Response: Accelerate commissioning, expand support
Base Case
Adoption meets projections
Self-sustainability Month 18
Response: Stay the course, build reserves
Long-Term Sustainability
Network Effects
As the network grows, sustainability strengthens:
More exhibitions → More host choice → More hosts More hosts → More licensing → More artist income More artist income → More artist interest → More exhibitions
This flywheel creates compounding sustainability.
Decreasing Costs
Some costs decrease at scale:
Infrastructure cost per transaction decreases
Support cost per user decreases (documentation, community)
Development cost per feature decreases (better foundation)
Increasing Efficiency
Efficiency improvements over time:
Automated processes reduce manual work
Community support supplements staff
Refined curation reduces wasted effort
Why This Matters
For Artists
Self-sustainability means:
Network won't disappear when funding ends
Payments will always be there
Long-term career building is possible
For Hosts
Self-sustainability means:
Platform will be maintained
Support will continue
Programming commitments are safe
For Culture
Self-sustainability means:
Permanent infrastructure, not temporary project
Growing capacity over time
Real alternative to extractive models
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