Governance Model

​

🧠 Governance Philosophy

Backerville villages operate on a hybrid governance model that balances:

1. Democratic Decision-Making: Members have direct input on key decisions through voting
2. Algorithmic Allocation: Portfolio rebalancing driven by collective intelligence
3. Professional Administration: Backerville provides structure and operational management

This approach creates a system where members have meaningful input while benefiting from streamlined operations and data-driven decision making.

​

🗳️ Membership Rights

Each village member holds several important rights:

• Voting Rights: Participation in quarterly voting and special decisions
• Economic Rights: Pro-rata claim on all proceeds received by the village
• Information Rights: Access to portfolio composition, voting results, and performance metrics
• Exit Rights: Ability to exit under certain conditions (subject to limitations)

​

🔄 Core Decision-Making Processes

​

1. Quarterly Voting System

The most frequent and impactful governance activity is the quarterly voting process:

• Bullishness Ratings: Members rate their own company’s prospects (1-100 scale)
• Peer Admiration: Members identify up to seven (7) similar companies they most admire
• Voting Window: 2-week period each quarter for submitting votes
• Participation Reward: Members who participate in at least 3 of 4 quarterly votes per year qualify for the annual revenue sharing program (10% of all Backerville revenue redistributed pro-rata based on member contribution value)

These votes serve as the primary inputs for the collective intelligence algorithm that drives portfolio rebalancing.

​

2. Quarterly General Meetings

Villages hold formal quarterly virtual meetups, facilitated by Backerville, where members:

• Review Performance: Assess the village’s portfolio performance for the quarter
• Discuss Strategy: Consider potential adjustments to village focus or strategy
• Provide Feedback: Offer input on administrative processes and tools
• Ratify Changes: Approve any significant changes to village operations

These regular meetings maintain continuous engagement among members and allow for more timely discussions and adjustments throughout the year.

​

3. Special Decisions

Certain decisions require specific member approval:

• Operating Agreement Changes: Modifications to the village LLC operating agreement
• Administrator Replacement: Changing the village administrator (rare)
• Dissolution: Decision to wind down the village (requires supermajority)
• Major Acquisitions: Unusually large acquisitions outside the normal rebalancing process

​

📊 Voting Thresholds

Villages operate with different voting thresholds depending on decision type:

​

⚖️ Conflict of Interest Handling

To maintain integrity in voting and decision-making:

• Recusal System: Members must recuse themselves from decisions with personal conflicts
• Disclosure Requirements: Potential conflicts must be disclosed to the administrator
• Independent Assessment: Backerville may engage independent advisors for conflict situations
• Anonymous Voting: Quarterly voting is anonymous to reduce pressure and conflicts

​

💬 Communication Channels

Villages maintain multiple communication channels:

1. Official Portal: Secure member portal for voting, accessing documents, and viewing village data
2. Quarterly Updates: Formal updates on portfolio composition and performance
3. Discussion Forum: Optional forum for member communication and discussion
4. Annual Report: Comprehensive report on village activities and performance

​

👨‍💼 Administrator Responsibilities

As the village administrator, Backerville has specific governance responsibilities:

• Meeting Administration: Organizing and facilitating all formal meetings
• Vote Administration: Running the quarterly voting process
• Documentation: Maintaining all governance documents and records
• Compliance Monitoring: Ensuring the village operates within regulatory requirements
• Communication: Keeping members informed of important developments
• Dispute Resolution: Helping resolve conflicts between members
• Financial Management: Collecting member contributions, distributing proceeds, and managing portfolio transactions
• Platform Administration: Maintaining the member portal and discussion forums
• Record Keeping: Managing financial records, member information, and transaction history

​

🔍 Governance Transparency

Villages operate with high transparency around:

• Algorithm Inputs: All members can see the anonymized inputs to the rebalancing algorithm
• Portfolio Composition: Current and historical portfolio allocations are visible to all members
• Performance Metrics: Clear reporting on village performance and individual company outcomes
• Administrative Costs: Transparent disclosure of all fees and expenses

​

📝 Amendments to Governance

The village governance system can evolve through:

1. Minor Adjustments: Backerville can make operational improvements without formal approval
2. Major Changes: Significant changes require member approval per voting thresholds
3. Regulatory Updates: Changes required by law are implemented immediately with notification

This flexible yet structured governance model enables villages to operate efficiently while giving members appropriate voice in important decisions that affect their shared portfolio.