[this is a legacy definition. It is not accurate anymore. For the latest accurate definition, please see the white paper. This post is not deleted because I think it can be interesting to see how the concept evolved.]
Continuous Organisations (CO) are a new type of internet-native organisations that are more efficient, stable and inclusive than traditional organisations (TO). At the heart of Continuous Organisations are fully digital liquid securities that align stakeholders’ interests much better than in traditional organisations. COs are extremely easy to incorporate and their properties make them ideal to create virtual online organisations, startups, joint ventures…
Technically speaking, a CO is characterized by:
- a smart-contract that automatically mints & burns tokens ("shares") according to predefined buy & sell functions (cf bonded curve model).
- revenues that are automatically used to buy shares that can be distributed to the organisation (reinvestment), to the employees and/or to shareholders (dividends) according to a predefined set of rules.
- a skin-in-the-game based governance organized around a layered token curated registry (cf LTCR).
Here is a simplified illustration of the buying/selling process in a Continuous Organisation:
The smart-contract acts as a last resort seller and a last resort buyer. Most of the time, it will be more profitable for a buyer to buy a token cheaper on the secondary market (if possible) than from the smart-contract directly. Likewise, it will be more profitable for sellers to sell their tokens on the secondary market at a higher price than the buy-back price of the smart-contract.
Here is an example of governance structure in a CO: