Hours and Pricing
How Daemon defines, credits, and tracks work hours.
The 32-40 Band
Every member is guaranteed a minimum of 32 credited hours per week and capped at 40 credited hours per week.
- 32 hours (floor) — The cooperative’s promise. Every member gets enough work to qualify as full-time for benefits. The mechanism must produce a valid allocation where nobody falls below this.
- 40 hours (ceiling) — The upper bound. No member can be assigned more than 40 hours in a week, even if they’re the most efficient person for every remaining project.
The band exists to balance autonomy (you’re not locked into 40) with full-time status (you’re guaranteed at least 32).
Vickrey Pricing (Credited Hours)
When a member wins a project, they are credited the Vickrey price — not their own bid.
Example: Alice bids 5h, Bob bids 7h, Carol bids 12h.
- Alice wins
- Alice is credited 7 hours (Bob’s bid — the next-best alternative)
- If Alice finishes in 5h, she has 2 hours of “slack” in her weekly total
- If Alice finishes in 8h, she absorbs 1 hour beyond her credit
The credited hours count toward the member’s 32-40 band regardless of actual time spent. This is the core incentive: honest bidding means the Vickrey price is usually ≥ your actual time, so you come out ahead.
Bid vs Actual vs Credited
| Term | Definition |
|---|---|
| Bid | Member’s estimate of how long the project will take them |
| Vickrey Price | The credited hours, derived from other members’ bids |
| Actual | How long it really took |
- Vickrey Price ≥ Bid (by construction, when bidding honestly)
- Actual vs Bid is the member’s risk/reward
- Credited hours (Vickrey Price) are what count toward the 32-40 band
Tracking and Accountability
Members absorb the difference between credited and actual hours themselves. If you consistently finish well under your bids, that’s a feature — you’re efficient and the mechanism rewards that. If you consistently go over, that’s your risk to manage.
See: Tracking Actuals