Entrepreneurs are low on cash. This type of currency is an IOU of sorts, payable when the startup has a liquidity event. Member service providers agree to defer compensation until funds are available, with the understanding that payment is risky.
Method of payment to service providers that does not involve stock. This is a promise to pay a service provider when funds for payment are available, for example at a liquidity event. Not all startups will make it to that point, so there is some risk that the service provider does not get paid. The advantage over payment in stock is that service providers would get paid earlier than if they had received stock for their work. As a result, this method of payment is less risky to the service provider than accepting stock, and more service providers may be interested in working with startups because of this.
How will your concept support web entrepreneurship?
Concept provides startups with mini service provider loans in a sense, and possibly with increased access to service providers. Service providers, like designers, lawyers, etc. may benefit by reducing their risk in working with startups.
What kinds of resources will be needed to get this concept off the ground and scale it?
Government policy may have to be adopted or changed to support this type of deal.