Fees
What are the fees?
Most private clubs have an initiation fee and annual membership fees. THE CRYPT differs in important ways. For most private clubs, their initiation fee and annual membership fees are nonrefundable and non-redeemable.
What is the initiation fee?
Members own THE CRYPT and all its assets. Instead of paying an initiation fee, prospective members purchase a share of the club. Members may leave the club at any time and will automatically receive their share of the club capital pool back.
The initial membership share purchase price (P) varies at the time of joining. It is dependent on the value of club assets (V) and the number of member shares (N) at the the time of purchase: P = V/N. Separate chapters of the club will have values specific to their number of members.
For the first 100 members of each chapter the share price is projected to be between $250 and $350. Please refer to the Discord channel for current values.
The share must be purchased with cryptocurrency and is represented by a crypto token. That token allows members to electronically vote on all club proposals. Any use of club funds requires a proposal approved by members.
What is the annual membership fee?
Members must purchase one non-voting membership share each year. Non-voting shares may be exchanged to purchase club services such as food and drink. If a member chooses to leave the club, any unused non-voting shares are automatically exchanged for their share of the club capital pool. Purchase of the annual non-voting share can be broken into monthly payments.
Fee FAQ:
Q: This all sounds complicated. Why not make membership free or nominal and just charge more for food and drinks like "normal" restaurants?
A: It's different, but member clubs operate this way because we believe it serves our members better. We believe member-owned clubs provide more value than businesses whose goal is to maximize profit from their customers. If the members of club stop believing this model serves them better, we can vote on it and change it.
Q: Are you trying to be exclusive and snobbish, by making your club private and having membership fees?
A: No. The popularity of private clubs declined due to their exclusivity. Fresh ideas and new contributors are key to an organization's long-term success. We want to make the club accessible to new contributors. At the same time, we want club members who are invested in the success of the club. Ownership encourages investment.
Q: Why even have an annual membership "fee"?
A: This gives members the flexibility to treat the annual share purchase as an annual purchase minimum on club services (food, drink, entertainment) or reserve it as equity in the club. We want members who are invested in the club and committed to using it regularly.
Q. Why can't I use cash to pay for membership and food and drinks?
A. We want to network with people who believe in crypto and want to use it as a medium of exchange.