A Resolution is a formal decision made by the project’s governance body (the Assembly or, in specific cases, the Council) under the rules of the FlexUp charter and are used whenever the project must approve or validate an action that affects associates, the project’s cash, or the evolution of the project.

In the FlexUp Economic Model, several key financial operations are carried out through dedicated resolutions—for example:

• Buyback resolutions (deciding whether credits or tokens will be repurchased)
• Distribution resolutions (approving the payment of distributions to associates)
• Allotment resolutions (confirming the annual token allotment)

Once a resolution is approved, it becomes binding, and the project must execute the corresponding operation under the charter’s terms.

Annual Resolutions Cycle

Equity commitments are processed during the Annual Resolutions Cycle, from the Project’s Net Excess Cash at the end of the year, distributed as follows (default percentages are shown):

• Strategic Reserves: 40% - cash set aside for future needs and contingencies,
• Credit Buyback: 30% - for repurchasing outstanding credits,
• Token Buyback: 10% - for repurchasing outstanding tokens.
• Distribution: 10% - direct cash distribution to token holders based on the number of tokens held.
• Endowment: 10% - funding for activities with positive social, environmental, or societal impacts.

Unlike other commitments, credits and tokens do not have a fixed due date. They become payable when a buyback request is made, provided the Project has sufficient excess cash at the end of the year.