Revenue Model
Zero capex. Real revenue from day one.
The Government's contribution is legislative and administrative; FCB funds the platform, operations, marketing and compliance infrastructure. Three revenue streams launch sequentially — MID (Year 1), IBC (Year 1 Q3 under §5(1)(b)), and a stablecoin payments rail (Year 2 extension). Figures shown below cover MID + IBC; the stablecoin extension is documented separately.
| Fee Type · MID | Government Share | FCB Share | Total Per Applicant |
|---|
| Initial Application (3-year term) | US$750 | US$2,750 | US$3,500 |
| Renewal (5-year term) | US$1,250 | US$1,750 | US$3,000 |
Note: Each MID fee includes a US$500 application-processing fee that is a pass-through covering institutional costs (KYC, verification, document handling) and is not part of revenue sharing. The remainder — the 3-year service fee on initial application, or the 5-year service fee on renewal — is the splittable revenue pool. Government's share of that pool rises from 25% on initial applications to 50% on renewals. As the renewal book matures, the programme's revenue mix shifts progressively in Government's favour.
IBC launches in Year 1 Q3 (half-year effective) under Bill §5(1)(b), not Year 2.
| Fee Type · IBC (via §5(1)(b)) | Government Share (70%) | FCB Share (30%) | Total Per Company |
|---|
| Year 1 · Application + First-Year Registration | US$420 | US$180 | US$600 |
| Annual Renewal | US$210 | US$90 | US$300 |
How non-tax revenue actually flows
Each applicant clears the three-tier statutory gate before any fee is recognised. On approval, the Government's share is credited directly to a Government-controlled settlement account under the Operating Agreement — no intermediary, no discretionary hold.
Year 1 · Pilot
US$845K
1,000 MID applicants. IBC activated in Y1 Q3 with 225 first-year registrations.
MID$750K
IBC$95K
Stablecoin—
Year 3 · Early Scale
US$2.49M
Stablecoin rail active (Year 2 launch).
MID$1.50M
IBC$500K
Stablecoin$485K
Year 5 · Steady State
US$5.91M
Renewal book building; stablecoin scaling.
MID$3.71M
IBC$885K
Stablecoin$1.31M
Year 10 · Mature
US$15.90M
Annualised. 10-yr cumulative: US$72.5M.
MID$9.17M
IBC$1.89M
Stablecoin$4.84M
Base case assumptions
Government share only · deliberately conservative
MID Year-1 new applicants1,000
MID retention (at each renewal point)78%
MID Y2 growth vs. Y1+50%
MID Y3 → Y10 growth curve+33% → +10%
IBC activationYear 1 Q3
IBC take-up (of new MID applicants)45%
IBC annual renewal retention70%
IBC Gov / FCB split70 / 30
Stablecoin launchYear 2 · separate extension
Formula — Gov annual revenue = (MID new × $750) + (MID renewed × $1,250) + (IBC new × $420) + (IBC renewed × $210) + Stablecoin Gov share (see stablecoin model)
Benchmark — Estonia e-Residency Year 1 (2014): ~10,000 applicants. Palau Year 1 (2022): ~15,000. Our base case of 1,000 is a deliberate 10× haircut. 78% at-renewal retention (equivalent to ~93% annualised) sits below Estonia's best years — a defensive baseline.
| Scenario |
Year 3 |
Year 5 |
Year 10 |
Trigger |
| Bear |
US$1.2M |
US$2.3M |
~US$12M |
60% retention or 30% IBC take-up or stablecoin delayed to Y3 |
| Base |
US$2.49M |
US$5.91M |
US$15.90M |
78% retention · 45% IBC · stablecoin Y2 |
| Bull |
US$3.8M |
US$8.5M |
~US$26M |
85% retention · 55% IBC · stablecoin ARPU +30% |
Upside scenario — the compounding case
Not in base projections
If adjacent services reach product-market fit and operational excellence compounds retention, annual revenue growth can sustain at elevated rates — producing a materially larger book by Year 10. This upside depends on three conditions occurring together:
- MID intake growth sustained, not decelerating. Quality of service and word-of-mouth keep year-over-year growth above +40% through Year 5 — rather than the base case's graduated slowdown.
- Retention climbs from 78% to 85%. Applicants experience genuine utility from the MID Wallet and programme services — not just a status credential.
- IBC take-up rises from 45% to 55%. Digital residency becomes the preferred on-ramp for Montserrat IBC formation among international founders.
Under this combined upside, Year 10 annualised Government revenue could reach US$30M+ — roughly double the base case. The stablecoin payments extension (already modelled as the first such stream) adds a further US$19.3M Government share over 10 years; additional sovereign infrastructure revenue streams represent upside beyond that.
Transparency. All assumptions above are explicit and independently stress-tested. The complete financial model — methodology, full 10-year cash-flow schedule, cohort mechanics, and sensitivity drivers — is published as a separate document for Cabinet review.
For the Year-2 stablecoin payments extension and its US$19.3M additional Government revenue over 10 years, see the Stablecoin & Payments Financial Model.
Full financial model & methodology →
