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Demand first, then machines

Element 31 intends to ship Genies only where real buyers exist to keep them busy. Supply follows demand, so that households are not left with quiet machines and quiet earnings.

IN SHORT

Demand first means Element 31 intends to ship Genies only where real buyers for the computing already exist to keep them busy. Because households are paid only when work sells, shipping machines ahead of demand would leave households with quiet machines and quiet earnings. Supply follows demand, not the other way round, and the pace of shipping is set by sold work rather than by orders.

A machine that is paid only when its work sells is only worth owning if there is work to sell. That sentence contains the whole of Element 31's demand-first rule, and it explains why Genie is being brought to market in the order it is: buyers of computing first, machines in homes second.

The problem with shipping first

The tempting path for any hardware product is to sell as many units as people will buy and work out what to do with them afterward. For Genie that path would be dishonest. Each Genie performs sealed batch work for E31 Cloud, and the household is paid when, and only when, that computing is sold to a paying customer. A Genie shipped into a market with no buyers would run on the home's surplus, perform work nobody had ordered, and earn nothing. The app would show a quiet day every day, and the quiet would not be the weather's fault.

Element 31 does not want to put households in that position, and does not want to be in the position of explaining it.

What demand first means in practice

Element 31 intends to ship machines only where real buyers exist to keep them busy. That means E31 Cloud's job of finding businesses with suitable batch work, the kind that does not mind waiting for the sun, comes ahead of putting Genies into homes. Supply follows demand, not the other way round.

It also means the number of machines in homes is set by how much computing has actually been sold, not by how many people would like a Genie. That is slower than the alternative and it is the only pace at which the payment rule can be kept honestly. Element 31 does not announce figures for either side of that balance before they are final, and does not announce timelines.

What it means for someone who reserves

Reservations are not yet open. When they open, a reservation will not be a purchase: it will hold your place, it will be fully refundable at any time with one click, and nothing ships until specifications, hosting terms, and measured performance are published. Demand first adds a further honesty to that. A place in line is a place in a line that moves at the speed of sold work, and Element 31 will say so rather than imply otherwise.

The household's protection is that it never pays for the hardware, and that the $100 deposit, when reservations open, will be fully refundable at any time; once the hosting terms are published, the household either confirms its place on them or takes an instant refund. Nobody is asked to commit to a machine before they can see what it will be paid for.

The honest version of growth

There is a version of this product that grows fast by promising households a return and finding the work later. Element 31 has ruled that version out. Genie will never be described in terms of yields, returns, or passive income, and machines will not be shipped on the strength of hope. The slower version, in which demand is real before the hardware is, is the one that lets the app's figures for work sold and money owed mean something.

Genie is in development. For how payment follows sales, see Paid when the work sells. For what Element 31 will publish before the first Genie ships, see that article, and for the rule set as a whole, the principles page.

Questions this raises

Why not ship as many Genies as people want to buy?
Because the household is paid only when the work sells. A Genie in a market with no buyers would earn nothing, and the quiet would not be the weather's fault. Element 31 does not want to put households in that position.
Does demand first mean a long wait?
It means the wait is set by sold work rather than by a promise. Element 31 does not announce timelines, and when reservations open the deposit will be fully refundable at any time with one click, so waiting carries no risk.
Who are the buyers of the computing?
Businesses with behind-the-scenes batch work that does not mind waiting for the sun. E31 Cloud pools many Genies into capacity those businesses pay for in currency.