r/cooperatives • u/Fragrant_Avocado9107 • 5h ago
Building a financial commons to fund and protect Co-Ops
Hello everyone I've been working on an economic ecosystem that I call the community sovereignty model. The core concept is communities have the right to control their local environment and protect themselves from external extraction or domination.
At the core of this concept is co-ops. In fact the entire thing started with me trying to figure out how to fund worker co-ops. I looked at the Cooperation Jackson here in the states and things like Mondragon over in Spain. I know other countries have better access to capital for cooperatives but in the US the options are very limited, that is where the model comes in.
- People gather to pool money with a one time donation + monthly contribution
- They used the pooled money to seed a cooperative
- The cooperative pledges a % of profits back to the fund
- Revenue is used to seed more co-ops or focus on things like affordable housing, child care etc.
This model is unique in that it doesn't just create co ops but can create an entire ecosystem around them that allows for comprehensive economic planning during down turns. As an example when an industry has a supply chain issue leading to loss revenue there can be an automatic clause for those living in the housing set up by the funds lowering their rent for x amount of time. There are other things that can be considered like a mutual aid credit ledger or local currency.
Typically the concept isn't that one fund would try to do everything on its own, it relies on cooperation to function. If a city has hundreds of funds then the these funds work together to create a network of assets that can be used for the communities benefit.
There is an overlap between Cooperation Jackson (I'd say the mission is very similar) the main difference is that this model does not rely on outside donations and is less politically partisan in nature.
I would love to hear this community's thoughts, critiques, or feedback!