There are 4 treaty types:
1. Project to Founder – In a conventional startup the founders start with 100% of the equity and use this to engage investors, advisors and employees to build the business. Co-ops don’t work like this. With a Project to Founder Treaty you can articulate a founder’s reward that works for founders and members.
2. Project to Volunteer – Volunteers don’t need payment but establishing clear expectations for both sides through this Treaty is essential to good community development.
3. Project to Service Provider – In their early days Co-ops can struggle to engage professional service providers because they don’t have equity to share. This Treaty provides an at-risk and deferred option for payment of service providers that is fair for everyone.
4. Project to Mentor – Engaging with experienced mentors over the startup and scale up phase of a co-op is critical to the success of co-op ventures. This Treaty enables a co-op to provide a fair reward for the value provided by mentors.
A typical Project may require 1 or 2 Mentor Treaty types, up to 5 Founder Treaty types, several Service Provider Treaty types and several Volunteer Treaty types.