Daemon
A freelancer cooperative using mechanism design to allocate work fairly.
Daemon is a loose agency — a freelancer union — where members bid on projects using a reverse Vickrey-Clarke-Groves (VCG) auction. The mechanism allocates work so that every member receives between 32 and 40 hours per week, qualifying them as full-time for benefits while preserving autonomy over what they work on.
Core Idea
Members don’t compete on price. They compete on honest time estimates. When a project comes in, members bid how many hours it would take them to complete it. The VCG mechanism assigns the project and credits the winner at the Vickrey price (based on the next-best bid), not their own bid.
This means:
- Honest estimates are the dominant strategy
- Winners typically earn more credited hours than they actually spend
- Everyone gets enough work to qualify as full-time
- Members retain autonomy in choosing what interests them
How Money Works
The cooperative bills clients at market rates. Members earn a salary (based on role/seniority) for their 32-hour floor. Hours above 32 generate surplus contributions that weight the annual profit dividend. The mechanism operates purely in hours — money is a separate layer. See: Revenue Model
The Project Pool
The weekly auction includes three types of work:
- Client work — revenue-generating projects from external clients
- Cooperative work — biz dev, mentoring, internal tooling, documentation
- Pro bono work — community orgs, mutual aid, open source (fills capacity during slow weeks)
All three go through the same mechanism. Members bid on what interests them.
Vault Structure
- Mechanism Design — How the reverse VCG auction works
- Hours and Pricing — The 32-40 band, Vickrey pricing, and what “hours” mean
- Revenue Model — Client billing → salary → annual profit dividend
- Client Acquisition — Members bring clients + the mission sells itself
- Pro Bono Queue — Community work during slow weeks
- Cooperative Structure — Freelancer union model, benefits, legal structure
- Open Questions — Unresolved design decisions
- Glossary — Key terms and concepts