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Financial and Org. Structure

Financial Process

Deep Work is a collective of designers who have shared responsibility of the studio's profits through its token. Our finances are managed by a series of business units.
Current balances can be seen live on a Dune Dashboard:

Organisation Structure

The following organisation structure operates through Deep Work Ltd, a British Virgin Islands Limited Company.

Revenue

Clients pay Deep Work Ltd to a project wallet of the Creative Director leading the project. Each wallet is a mulitsig controlled by all Creative Directors.

Projects - Design

Funds in the project wallet are spent on project costs:

Costs

The following team costs are paid out of the project wallet:
  • Team costs: e.g. Facilitators, Product Designers, User Researchers, and Creative Directors.
  • Recruitment and mentoring bonuses: costs paid to team members to recruit and mentor collaborators.
  • Collaborator payments: additional team members upskilling into Deep Work.
  • User testers: fee paid to user testers.
  • Product creator: a commission paid to the creator of the product.
The following operational costs are paid out of the project wallet:
  • User testing

Gross Profit

After the costs outlined above, we establish a gross profit from projects. This goes to the treasury.

Expenses

The org then has the following expenses from the gross profit. Funds can be distributed from the treasury on two ways:
Monthly Finance and Budgeting Process:

Departments

Departments request funding as part of a monthly finance and budgeting process.

Operational Costs

Costs paid for software and user testing.
Please note, operational costs is made as a payment to Deep Work Studio Limited, a UK Limited Company. The USDC or xDAI is converted to euros which covers operational costs in FIAT. The UK Limited makes a small surplus profit to maintain software and other FIAT costs if there is a down period in client revenue.

Profit Share

A request can be made to the treasury to share a percentage of the gross profits to members of the collective:

Net Profit

It is intended that the USDC or xDAI Treasury will be fully distributed (spent). Once a governance proposal is raised, funds must still be made through a payment request and invoice. Therefore, the collective will make a net profit of zero. As a note on taxes - with no profit, Deep Work Ltd will pay no corporation tax on profits.
As a global organisation is up to the individuals in the collective to pay income taxes on any income made from Deep Work. This avoids double taxation at a corporate and individual level. To make sure individual taxes are paid, Deep Work checks all invoices from team members and makes participants agree to pay taxes.

DEEP Token

The following balances of tokens are in their respective wallets. For more information on the token distribution, please see: https://docs.deepwork.studio/deep-work-onboarding/background-and-introduction/deep-token/distribution

Corporate Structure

  • Deep Work Ltd - a limited company that invoices clients, pays teams members and distributes tokens representing participation and work.
  • Deep Work Studio Limited - an operational company that invoices Deep Work Ltd and manages certain aspects on behalf of Deep Work Ltd.