Capital Recycling and the 90/10 Model
Specifies the institutional profit split, its strict scope, and the disclosure required before consent.
Draft: Written but unreviewed. Content may change substantially.
Motivation
Capital deployed once produces one round of outcomes; recycled capital compounds institutional capability.
Specification
Under a voluntary institutional agreement, up to 10% of project profit accrues to the participant and at least 90% returns to the institution for redeployment. The split applies only to projects entered under such an agreement and creates no claim on independently created private wealth.
Institutions must disclose, before consent: resources provided, the definition of project profit, the audit method, exit terms, and IP treatment.
Rationale
Terms this asymmetric are only acceptable if the institution supplies capability a founder cannot otherwise obtain. If it does not, no one signs, which is the intended check.
Open questions
Definition and audit of project profit; treatment of participant-contributed IP; secondary sales.
Proposal metadata
- Identifier
- IIP-0005
- Status
- Draft
- Created
- 2026-08-01
- Last revised
- 2026-08-01
- Authors
- ISILP
- Framework version
- 0.1.0-alpha
- Source
proposals/iip-0005.mdx
Chapters governed by this proposal
Cite this page
ISILP. IIP-0005: Capital Recycling and the 90/10 Model. Intelligentism Improvement Proposals, version 0.1.0-alpha (revised 2026-08-01). https://intelligentism.isilp.org/proposals/iip-0005