Patronage Activity & Ownership Points Policy
Last Updated: April 2, 2026 — Version 1.0
This Policy is incorporated by reference into the Subvert Terms of Use, available at subvert.fm/terms-of-use. For Cooperative members, this Policy is additionally subject to the Form of Member Agreement and the Subvert Cooperative Bylaws. It should be read alongside the Subvert Privacy Policy, available at subvert.fm/privacy-policy.
On other platforms, the community that actually creates the value doesn’t capture it. The financial upside is extracted by founders and investors who control the platform. Subvert is different. As a Co-op Member, your activity on the platform is tracked as patronage and rewarded with Ownership Points - your economic stake in what we’re building together.
1. Purpose
This Policy governs how Subvert Cooperative LCA measures member patronage activity, issues Ownership Points, and administers the Ownership Assembly. It establishes the definitions, processes, and governance structures that ensure Ownership Points reflect genuine community value and are distributed fairly and transparently.
This Policy operationalizes the patronage refund and allocation provisions of the Cooperative Bylaws (Articles VII and VIII) and the Member Agreements for each membership class. In the event of any conflict between this Policy and the Bylaws or Member Agreements, the Bylaws and Member Agreements shall control.
2. Patronage Activity
2.1 What Patronage Activity Is
In a cooperative, patronage measures your contribution to the collective. Subvert recognizes value created both through your support as a member and your work as a creator. Patronage activity is the sum of your economic and non-economic contributions to the Cooperative during a given evaluation period.
Patronage activity determines your Ownership Points allocation for each quarter. It is tracked automatically by the platform and displayed in your member dashboard.
2.2 Categories of Patronage Activity
Patronage activity is organized into five categories. The specific actions that count within each category are defined by Cooperative management and may be updated from time to time without requiring a Board vote or Policy amendment. The Ownership Assembly determines how each category is weighted each quarter.
Economic Activity
Direct financial contributions to the platform and its artist community. Examples include purchases of releases, total amount spent, Pay More Pricing contributions above the listed price, and Optional Contributions made at checkout to support the Cooperative.
Content Activity
Contributions that add value to the platform’s catalog and ecosystem. Examples include releases uploaded and maintained, tracks published, and collections created.
Engagement Activity
Participation in the platform’s listening and discovery ecosystem. Examples include listens, completed listens, time listened, and Promotional Previews accessed.
Governance Activity
Participation in the democratic governance of the Cooperative. Examples include voting in Board elections and member votes, attending Annual and Special Meetings, and serving on the Ownership Assembly or Cooperative Moderation Panel.
Special Designations
Criteria established by the Board or Cooperative management to recognize specific contributions or member characteristics. Examples include founding member status, membership tenure, and actions specifically designated by management as patronage-eligible. Management has the authority to add, modify, or remove special designations with Board approval.
2.3 Management Authority Over Patronage Actions
Cooperative management has the authority to define, add, or modify the specific actions that count as patronage activity within each of the five categories above. This allows the Cooperative to remain adaptive and to recognize new forms of genuine community contribution as the platform evolves. Any significant changes to the definition of patronage actions will be communicated to members in advance and reported to the Ownership Assembly.
3. Ownership Points
3.1 What Ownership Points Are
Ownership Points quantify your patronage — a record of how you have supported the Subvert community and platform. These points are a non-transferable record of your contribution to the collective.
Ownership Points represent your proportional stake in the Cooperative’s underlying assets and your share of future profits if and when the Cooperative distributes patronage refunds. They accumulate over your lifetime as a member and are never reset.
3.2 How Points Are Issued
Ownership Points are issued retroactively at the end of each evaluation period. Because the Cooperative believes Ownership Points should reflect authentic participation rather than a fixed ratio, there is no predetermined formula for converting activity into points. Instead, points are determined each quarter through the process described in Section 4.
3.3 Evaluation Periods
Evaluation periods are the designated timeframes during which the Cooperative measures platform-wide patronage to calculate and distribute Ownership Points. Evaluation periods are planned to run quarterly. The platform displays the number of days remaining in the current evaluation period and the next Ownership Points distribution date in each member’s dashboard.
3.4 Non-Transferability
Ownership Points are non-transferable. They cannot be sold, assigned, or otherwise transferred to another person or entity. They are a record of your individual contribution to the Cooperative.
4. The Ownership Assembly
4.1 What the Ownership Assembly Is
The Ownership Assembly is a rotating deliberative body of Cooperative members responsible for determining how different categories of patronage activity are weighted each quarter. Think of it as Co-op Jury Duty — a rotating group of peers responsible for overseeing the distribution of value. Because the Assembly is selected by sortition rather than election, it resists capture by the same voices quarter after quarter and gives every active member a genuine chance to shape how ownership is distributed.
4.2 Selection
Each quarter, 12 active members are randomly selected by sortition from the full pool of active members across all four membership classes — Artist Members, Label Members, Supporter Members, and Worker Members. Any active member in good standing is eligible to be selected. Members may serve on the Assembly more than once. Given the small size of the Worker Member class, repeat service is anticipated and acceptable.
Cooperative management facilitates the sortition process and notifies selected members in advance of each evaluation period.
4.3 Term and Compensation
Assembly members serve for one quarter. They are compensated for their time in accordance with the compensation policy established by the Board, consistent with the compensation provided to members of the Cooperative Moderation Panel.
4.4 What the Assembly Decides
Each quarter the Assembly is responsible for two determinations:
Patronage Weighting
The Assembly reviews the period’s patronage activity data across all five categories and determines the relative weight of each category. By assessing what added the most value to the collective during that specific window, the Cooperative remains adaptive and resilient to manipulation. The Assembly does not set fixed point ratios — it determines proportional weights that Management then uses to calculate the distribution formula.
Worker Class Percentage
The Assembly determines what percentage of the total Ownership Points issued in a given quarter is allocated to the Worker Member class collectively. Worker Members then decide amongst themselves how to distribute their class’s allocation.
4.5 Process
The Assembly operates as follows each quarter:
• Activity data for the evaluation period is compiled by Cooperative management and presented to the Assembly.
• The Assembly deliberates on the relative weight of each patronage category and the Worker class percentage. Management facilitates the process and provides relevant context but does not vote.
• The Assembly submits its weighting recommendations to Cooperative management.
• Management uses the Assembly’s weightings to develop the Ownership Points distribution formula for that quarter.
• The formula is submitted to the Co-op Board of Directors for approval and ratification before points are issued.
• Once the Board approves, Ownership Points are issued to member dashboards.
4.6 Board Ratification
The Co-op Board of Directors reviews and ratifies the quarterly Ownership Points distribution formula before points are issued. The Board may request modifications if the formula is inconsistent with this Policy, the Bylaws, or applicable law. The Board may not override the Assembly’s weighting decisions without cause.
5. Worker Points Distribution
The Ownership Assembly determines what percentage of total quarterly Ownership Points is allocated to the Worker Member class. Once that percentage is set and ratified by the Board, Worker Members determine amongst themselves how to distribute their class’s allocation. The process by which Worker Members make this determination is governed by the Worker Member class and facilitated by Cooperative management.
6. Transparency
Subvert is committed to full transparency with respect to Ownership Points. Following each quarterly distribution the Cooperative will publish:
• The Assembly’s weighting decisions for each patronage category.
• The Worker class percentage determined by the Assembly.
• The total Ownership Points issued in the quarter.
• The distribution formula used by Management.
• Aggregate patronage activity data for the period.
This information will be made available to all members and the general public through the Service. Individual member point balances and activity data are private and visible only to the relevant member.
The annual Ownership Points distribution and asset valuations will be announced during the Annual General Meeting.
7. Policy Review
This Policy is reviewed at least annually by the Co-op Board of Directors with input from the Ownership Assembly. The Ownership Assembly may submit recommendations for changes to this Policy as part of its quarterly deliberations. Material changes to this Policy require Board approval and advance notice to members consistent with the Member Agreement amendment process.