Alex MOU

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Understanding between Marcin and Alex S.

  1. 50/50 partnership to be started on several tools of the Global Village Construction (GVCS).
  2. 50% of net revenue goes to each party. Definition of net revenue has to be clarified regarding infrastructure investments and assets, and disposable revenue
  3. Marcin and Alex agree on rollout sequencing and strategy to meet needs of OSE and Alex
  4. Alex provides financing, organizational form, marketing, sales, distribution
  5. Marcin provides R&D according to OSE Specifications, trains the trainers, and develops crowd-based Extreme Manufacturing and Extreme Design techniques for making public product development a reality.
  6. Training the trainers means that many individuals are trained to guide extreme build workshops. In extreme builds, individuals build their own machines that they can understand and maintain for a lifetime.
  7. In kits production, third paries may be recruited, but ideally, kits production would be done by underprivileged communities to raise them out of poverty.
  8. In training- we offer our services to train our competition. Our competition generates new designs that we can use.
  9. Platform for design blueprints provides only open source design that is OSHWA compliant. Platform requires that all derivatives are open source. Anyone can produce designs free of charge or royalties. Licensing of Entity's brand is allowed.
  10. Pilot phase first 6 months for a successful demo project of choice.
  11. Agreement is to form a new entity (Entity from hereon) that works in collaboration with Open Source Ecology (OSE)
  12. Agreement intent is for adding rocket fuel to OSE development, such that several of the key tools of the GVCS can be brought to market on an accelerated schedule.
  13. Core goal is distributing production far and wide as a distributive economic entity
  14. Intent is to be consistent with principles of open source ecology (the movement) - which is an open-source centric approach to solving pressing world issues
  15. All designs, bills of materials, instructionals, manufacturing blueprints, production engineering, economic analysis, and training are likewise published free of charge and open source. This is to be consistent with an absolutely distributive approach. This means that our revenue model is based on innovation, training, kit production, and XM.
  16. Entity revenue model is kits, training, and Extreme Manufacturing.#Entity revenue model is based on continuing innovation, Extreme Manufacturing for DIY production, first- and second-to-market value generation
  17. Innovation model applies to both designs and training - ie - constant improvement means that Entity has a competitive advantage
  18. Entity strives for first-to-market advantage via product ecologies (product systems where one product synergizes with other products)
  19. Entity stives for second-to-market advantage via opensourcing of existing point designs
  20. Entity creates product ecologies based on integration of point designs to product sets
  21. Focus is on efficient production by the masses, not mass production. Marcin does not believe that mass production can compete with open source production based on our results of the Extreme Manufacturing (XM) model of DIY production that we have developed over the years. The mainstream model cannot provide lifetime service at a reasonable cost, whereas OSE focuses on a lifetime of service where the buyer really owns the product that they bought.
  22. Entity is to design products for as much common-off-the-shelf (COTS) materials as possible
  23. All blueprints generated are open source, intended for replication
  24. Nonexclusive licensing of Entity's brand is ok. This does not prevent free use of designs by any other entrepreneurs, free of charge and without any incumberances.
  25. Marcin spends 25% time on developing collaborative Extreme Design and Extreme Manufacturing practices- which enables DIY production. 75% of the time is spent on product development.
  26. Ongoing publishing is a marketing asset - not a source of risk
  27. We agree to work openly and transparently, our value coming from the ethics of distributive enterprise - as opposed to controlling others in what they can do with our designs and products
  28. Teaching and training is a significant revenue model for the Entity. I would suggest that we make materials open courseware - but the hands-on training should be paid. We charge for our time - and for XM builds.
  29. Kits are ok, and they can be mass produced, but we do not forget about our mission of reskilling the population towards resilience - away from consumer mindset into productive mindset according to Self-Determination Theory. That means a significant part of our work (50% or more) is still education - both training and popular participation in Extreme Manufacturing. Just like OSE builds 3D printers and tractors in one day, and 1400 square foot houses in 5 days - via its Extreme Manufacturing build events:


  • R&D method is 50% via dedicated staff, and 50% via crowdsourcing using platforms such as HeroX, the OSE Clubs, and quarterly Extreme Build Challenges which involve students and the public.
  • Efforts supports Marcin's effort of finishing of the Global Village Construction Set, and supports the enterprise efforts of Alex
  • Marcin is steward of the open source ethic.


  1. Scope is the open source off-grid microfactory, with 200kw of off-grid solar, and all machines in there up to induction furnace and metal rolling + heavy duty CNC for engines by end of year 2, and PV production from sand by end of year 3. Includes production of air bearings by end of year 2. Year 1 is basic microfactory, Year 2 is advanced microfactory up to steel and engine production.
  2. Suggested Phase 1 pilot - first 6 months - build microtractor running on charcoal as discussed
  3. Typical economic model for mass production is charging 2-10x over the cost of materials for significant products. The XM model involves a typical 2x cost in the market, and 1x cost for pure DIY production - or 5-10x cheaper than industry standards. For example - our CEB press is $5k in materials, and we can do an XM workshop where a customer takes it home for $10k, and the nearest competitor costs $52k. The XM model revolves around flipping the labor cost, where instead clients and other participants pay for the build experience.
  • Exit strategy $1B or 6 years, whichever is longer - and we reevaluate relationship at the 6 year mark?


  • Staff goals - 50 full time after year 1, 100 by year 2, and 200 by end of year 3
  • Year 1 - begin production of tractor, 3d printer, agricultural rotary spader, power cube running on charcoal, charcoal production, CNC torch table, CNC circuit mill, laser cutter, CEB press infastructure including soil mixer.
  • First 3 years:
  • Y1 for basic fab, 4000 square feet
  • Y2 is advanced microfactory with steel production and air bearings added to the same facility
  • Y3 we produce PV panels with additional 4000 sf facility
  • Focus shifts to enterprise scaling by year 4, to achieve $1B revenue by end of year 6 (1000 microfactories with $1M revenue each)
  • Scaling goal for overall worldwide open source production is $1T within 10 years.


  • Greatest risk is cultural - clashes on reconciling business strategy with openness goals

Production Principles

  1. Focus is on Design-for-DIY production via swarm builds as a mainstreamable route to manufacturing
  2. Brand licensing of new Entity is ok as long as products themeselves remain completely open source
  3. Blueprints are published on an ongoing basis
  4. Our competitive advantage is trained staff who can execute builds
  5. Revenue breakdown ideal - 30% XM, 30% kits, 30% education
  6. Design is for common-off-the-shelf (COTS) part use whenever possible to maximize replicability
  7. Design focuses on product ecologies, not individual products
  8. Design focuses on a Construction Set Approach, not singular products
  9. Design focuses on true democratization of production
  10. We focus on producer goods over consumer goods
  11. Design for regenerating the planet - ideally - manufacturing communities are 100% self-reliant on food, energy, housing. This means 80 acre requirement for 100% backup fuel via regeneratively-grown biomass if the sun went out for the whole year