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Kurt Laitner

Towards a Material Commons | Guerrilla Translation! - 0 views

  • the modes of communication we use are very tightly coupled with the modes of production that finance them
  • I’m focused on the policy formation around this transition to a new, open knowledge and commons-based economy, and that’s the research work I’m doing here
  • The problem is I can only make a living by still working for capital.
  • ...88 more annotations...
  • We now have a technology which allows us to globally scale small group dynamics, and to create huge productive communities, self-organized around the collaborative production of knowledge, code, and design. But the key issue is that we are not able to live from that, right
  • A lot of co-ops have been neo-liberalizing, as it were, have become competitive enterprises competing against other companies but also against other co-ops, and they don’t share their knowledge
  • We cannot create our own livelihood within that sphere
  • instead of having a totally open commons, which allows multinationals to use our commons and reinforce the system of capital, the idea is to keep the accumulation within the sphere of the commons.
  • The result would be a type of open cooperative-ism, a kind of synthesis or convergence between peer production and cooperative modes of production
  • then the material work, the work of working for clients and making a livelihood, would be done through co-ops
  • But it hasn’t had much of a direct connection to this emerging commons movement, which shares so many of the values and  principles of the traditional cooperative movement.
  • There’s also a lot of peer-to-peer work going on, but it’s not very well versed around issues like cooperative organization, formal or legal forms of ownership, which are based on reciprocity and cooperation, and how to interpret the commons vision with a structure, an organizational structure and a legal structure that actually gives it economic power, market influence, and a means of connecting it to organizational forms that have durability over the long-term.
  • The young people, the developers in open source or free software, the people who are in co-working centers, hacker spaces, maker spaces. When they are thinking of making a living, they think startups
  • They have a kind of generic reaction, “oh, let’s do a startup”, and then they look for venture funds. But this is a very dangerous path to take
  • Typically, the venture capital will ask for a controlling stake, they have the right to close down your start up whenever they feel like it, when they feel that they’re not going to make enough money
  • Don’t forget that with venture capital, only 1 out of 10 companies will actually make it, and they may be very rich, but it’s a winner-take-all system
  • we don’t have what Marx used to call social reproduction
  • I would like John to talk about the solidarity co-ops, and how that integrates the notion of the commons or the common good in the very structure of the co-op
  • They don’t have a commons of design or code, they privatize and patent, just like private competitive enterprise, their knowledge
  • Cooperatives, which are basically a democratic and collective form of enterprise where members have control rights and democratically direct the operations of the co-op, have been the primary stakeholders in any given co-op – whether it’s a consumer co-op, or a credit union, or a worker co-op.
  • Primarily, the co-op is in the service of its immediate members
  • What was really fascinating about the social co-ops was that, although they had members, their mission was not only to serve the members but also to provide service to the broader community
  • In the city of Bologna, for example, over 87% of the social services provided in that city are provided through contract with social co-ops
  • democratically run
  • much more participatory, and a much more engaged model
  • The difference, however, is that the structure of social co-ops is still very much around control rights, in other words, members have rights of control and decision-making within how that organization operates
  • And it is an incorporated legal structure that has formal recognition by the legislation of government of the state, and it has the power, through this incorporated power, to negotiate with and contract with government for the provision of these public services
  • In Québec they’re called Solidarity co-ops
  • So, the social economy, meaning organizations that have a mutual aim in their purpose, based on the principles of reciprocity, collective benefit, social benefit, is emerging as an important player for the design and delivery of public services
  • This, too, is in reaction to the failure of the public market for provision of services like affordable housing or health care or education services
  • This is a crisis in the role of the state as a provider of public services. So the question has emerged: what happens when the state fails to provide or fulfill its mandate as a provider or steward of public goods and services, and what’s the role of civil society and the social economy in response?
  • we have commonses of knowledge, code and design. They’re more easily created, because as a knowledge worker, if you have access to the network and some means, however meager, of subsistence, through effort and connection you can actually create knowledge. However, this is not the case if you move to direct physical production, like the open hardware movement
  • I originally encountered Michel after seeing some talks by Benkler and Lessig at the Wizard of OS 4, in 2006, and I wrote an essay criticizing that from a materialist perspective, it was called “The creative anti-commons and the poverty of networks”, playing on the terms that both those people used.
  • In hardware, we don’t see that, because you need to buy material, machines, plastic, metal.
  • Some people have called the open hardware community a “candy” economy, because if you’re not part of these open hardware startups, you’re basically not getting anything for your efforts
  • democratic foundations like the Apache foundation
  • They conceive of peer production, especially Benkler, as being something inherently immaterial, a form of production that can only exist in the production of immaterial wealth
  • From my materialist point of view, that’s not a mode of production, because a mode of production must, in the first place, reproduce its productive inputs, its capital, its labor, and whatever natural wealth it consumes
  • From a materialist point of view, it becomes  obvious that the entire exchange value produced in these immaterial forms would be captured by the same old owners of materialist wealth
  • different definition of peer production
  • independent producers collectively sharing a commons of productive assets
  • I wanted to create something like a protocol for the formation and allocation of physical goods, the same way we have TCP/IP and so forth, as a way to allocate immaterial goods
  • share and distribute and collectively create immaterial wealth, and become independent producers based on this collective commons.
  • One was the Georgist idea of using rent, economic rent, as a fundamental mutualizing source of wealth
  • Mutualizing unearned income
  • So, the unearned income, the portion of income derived from ownership of productive assets is evenly distributed
  • This protocol would seek to normalize that, but in a way that doesn’t require administration
  • typical statist communist reaction to the cooperative movement is saying that cooperatives can exclude and exploit one another
  • But then, as we’ve seen in history, there’s something that develops called an administrative class,  which governs over the collective of cooperatives or the socialist state, and can become just as counterproductive and often exploitive as capitalist class
  • So, how do we create cooperation among cooperatives, and distribution of wealth among cooperatives, without creating this administrative class?
  • This is why I borrowed from the work of Henry George and Silvio Gesell in created this idea of rent sharing.
  • This is not done administratively, this is simply done as a protocol
  • The idea is that if a cooperative wants an asset, like, an example is if one of the communes would like to have a tractor, then essentially the central commune is like a bond market. They float a bond, they say I want a tractor, I am willing to pay $200 a month for this tractor in rent, and other members of the cooperative can say, hey, yeah, that’s a good idea,we think that’s a really good allocation of these productive assets, so we are going to buy these bonds. The bond sale clears, the person gets the tractor, the money from the rent of the tractor goes back to clear the bonds, and  after that, whatever further money is collected through the rent on this tractor – and I don’t only mean tractors, same would be applied to buildings, to land, to any other productive assets – all this rent that’s collected is then distributed equally among all of the workers.
  • The idea is that people earn income not only by producing things, but by owning the means of production, owning productive assets, and our society is unequal because the distribution of productive assets is unequal
  • This means that if you use your exact per capita share of property, no more no less than what you pay in rent and what you received in social dividend, will be equal
  • But if you’re not working at that time, because you’re old, or otherwise unemployed, then obviously the the productive assets that you will be using will be much less than the mean and the median, so what you’ll receive as dividend will be much more than what you pay in rent, essentially providing a basic income
  • venture communism doesn’t seek to control the product of the cooperatives
  • It doesn’t seek to limit, control, or even tell them how they should distribute it, or under what means; what they produce is entirely theirs, it’s only the collective management of the commons of productive assets
  • On paper this would seem to work, but the problem is that this assumes that we have capital to allocate in this way, and that is not the case for most of the world workers
  • how do we get to that stage?
  • other two being counter politics and insurrectionary finance
  • do we express our activism through the state, or do we try to achieve our goals by creating the alternative society outside
  • pre-figurative politics, versus statist politics
  • My materialist background tells me that when you sell your labor on the market, you have nothing more than your subsistence costs at the end of it, so where is this wealth meant to come from
  • I believe that the only reason that we have any extra wealth beyond subsistence is because of organized social political struggle; because we have organized in labor movements, in the co-op movement, and in other social forms
  • To create the space for prefiguring presupposes engagement with the state, and struggle within parliaments, and struggle within the public social forum
  • Instead, we should think that no, we must engage in the state in order to protect our ability to have alternative societies
  • We can only get rid of the state in these areas once we have alternative, distributed, cooperative means to provide those same functions
  • We can only eliminate the state from these areas once they actually exist, which means we actually have to build them
  • What I mean by insurrectionary finance is that we have to acknowledge that it’s not only forming capital and distributing capital, it’s also important how intensively we use capital
  • I’m not proposing that the cooperative movement needs to engage in the kind of derivative speculative madness that led to the financial crisis, but at the same time we can’t… it can’t be earn a dollar, spend a dollar
  • We have to find ways to create liquidity
  • to deal with economic cycles
  • they did things the organized left hasn’t been able to do, which is takeover industrial means of production
  • if they can take over these industrial facilities, just in order to shut them down and asset strip them, why can’t we take them over and mutualize them?
  • more ironic once you understand that the source of investment that Milken and his colleagues were working with were largely workers pension funds
  • idea of venture communism
  • pooling, based on the capture of unearned income
  • in Québec, there is a particular form of co-op that’s been developed that allows small or medium producers to pool their capital to purchase machinery and to use it jointly
  • The other idea I liked was trying to minimize a management class
  • much more lean and accountable because they are accountable to boards of directors that represent the interests of the members
  • I’ve run into this repeatedly among social change activists who immediately recoil at the notion of thinking about markets and capital, as part of their change agenda
  • I had thought previously, like so many, that economics is basically a bought discipline, and that it serves the interests of existing elites. I really had a kind of reaction against that
  • complete rethinking of economics
  • recapture the initiative around vocabulary, and vision, with respect to economics
  • reimagining and reinterpreting, for a popular and common good, the notion of market and capital
  • advocating for a vision of social change that isn’t just about politics, and isn’t just about protest, it has to be around how do we reimagine and reclaim economics
  • markets actually belong to communities and people
  • capital wasn’t just an accumulated wealth for the rich
  • I think what we’re potentially  talking about here is to make the social economy hyper-productive, hyper-competitive, hyper-cooperative
  • The paradox is that capital already knows this. Capital is investing in these peer production projects
  • Part of the proposal of the FLOK society project in Ecuador will be to get that strategic reorganization to make the social economy strategic
  •  
    A lot of really interesting points of discussion in here.
Tiberius Brastaviceanu

If not Global Captalism - then What? - 0 views

  • I posit an optimistic view of the potential for Society from the emergence of a new and “Open” form of Capitalism.
  • Open Capital
  • the concept of “Open” Capital is “so simple…. it repels the mind".
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  • Open Capital is defined as “a proportional share in an enterprise for an indeterminate time”
  • ‘Enterprise’ is defined as ‘any entity within which two or more individuals create, accumulate or exchange Value”.
  • Value is to Economics as Energy and Matter are to Physics.
  • The Metaphysics Of Value
  • division between “subject” and “object”.
  • primary reality is “Quality”
  • formless and indefinable
  • not a “thing”
  • a non-intellectual awareness or “pre-intellectual reality”
  • but an event at which the subject becomes aware of the object and before he distinguishes it
  • Quality is the basis of both subject and object
  • distinguish between “Static” and “Dynamic” Quality
  • treating Value as a form of “Quality” as envisioned by Pirsig.
  • Riegel
  • defined “Value” as “ the Relativity of Desire” again implying indeterminacy.
  • Pirsig’s approach Capital may be viewed as “Static” Value and Money as “Dynamic” Value. “Transactions” are the “events” at which individuals (Subjects) interact with each other or with Capital (both as Objects) to create forms of Value and at which “Value judgments” are made based upon a “Value Unit”.
  • The result of these Value Events /Transactions is to create subject/object pairings in the form of data ie Who “owns” or has rights of use in What,
  • at what Price
  • accounting data
  • Neo-Classical” Economics confuses indeterminate Value with a market– determined Price –
  • Data may be static
  • This Data identifies the subject with objects such as tangible ‘Material Value’
  • Data may itself constitute ‘Intellectual Value’
  • It, too, may then be defined in a subject/object pairing through the concept of “intellectual property”.
  • Other forms of Value are however not definable by data:
  • “sentimental” Value
  • Emotional Value’
  • 'Spiritual Value’
  • We may therefore look at the “transaction” or “value event” in a new light.
  • The creation and circulation of Value essentially comprises the concept we know of as “Money”.
  • Money / Dynamic Value
  • “The purpose of money is to facilitate barter by splitting the transaction into two parts, the acceptor of money reserving the power to requisition value from any trader at any time
  • money
  • value unit dissociated from any object
  • monetary unit
  • the basis relative to which other values may be expressed
  • The monetary process is a dynamic one involving the creation and recording of obligations as between individuals and the later fulfilment of these obligations
  • The monetary “Value Event”/ Transaction involves the creation of “Credit”
  • obligation to provide something of equivalent Value at a future point in time.
  • These obligations may be recorded on transferable documents
  • database of “Credit”/obligations is not Money, but temporary “Capital”
  • “Working Capital”
  • Static Value – which only becomes “Money”/ Dynamic Value when exchanged in the transitory Monetary process.
  • what we think of as Money is in fact not tangible “cash” but rather
  • the flow of data between databases of obligations maintained by Credit Institutions
  • or dynamic
  • Banks literally “loan” Money into existence
  • In exchange for an obligation by an Individual to provide to the Bank something of Value
  • Bank’s obligation is merely to provide another obligation at some future time
  • These Bank-issued obligations are therefore
  • claim upon a claim upon Value
  • The true source of Credit is the Individual, not the intermediary Bank
  • this Money they create from nothing despite the fact that it is literally Value-less
  • Thus there is no true sharing of Risk and Reward involved in Lending
  • issue in relation to Credit/Debt and this relates to the nature of Lending itself.
  • the practice of Lending involves an incomplete exchange in terms of risk and reward: a Lender, as opposed to an Investor, has no interest in the outcome of the Loan, and requires the repayment of Principal no matter the ability of the Borrower to repay.
  • Ethical problem
    • Tiberius Brastaviceanu
       
      "The Lender has no interest in the outcome of the loan", i.e doesn't care what happens in the end. The Lender ins not interested in the economical outcome of the Lender-Loner relation. So in fact there is no real risk sharing. the only risk for the Lender is when the Loner doesn't pay back, which is not really a risk... In fact it is a risk for the small bank, who has to buy money from the central bank, but not for the central bank. 
  • Money is not
  • an “Object” circulating but rather a dynamic process of Value creation and exchange by reference to a “Value Unit”.
  • Capital/ Static Value
  • Capital represents the static accumulation of Value
  • Some forms of Capital are “productive”
  • An ethical question
  • in relation to Productive Capital relates to the extent of “property rights” which may be held over it thereby allowing individuals to assert “absolute” permanent and exclusive ownership - in particular in relation to Land
  • our current financial system is based not upon Value but rather a claim upon Value
  • Financial Capital consists of two types:
  • “Debt”
  • “Equity”
  • Interest
  • obligations of finite/temporary duration but with no participation in the assets or revenues
  • absolute and permanent ownership/participation (without obligation) in assets and revenues
  • discontinuity between Debt and Equity
  • at the heart of our current problems as a Society
  • The Enterprise
  • ‘Charitable’ Enterprise
  • ‘Social’ Enterprise
  • Value
  • exchanged in agreed proportions;
  • Value is exchanged for the Spiritual and Emotional Value
  • ‘Commercial’ Enterprise
  • ‘closed’
  • Value are exchanged between a limited number of individuals
  • Early enterprises were partnerships and unincorporated associations
  • need for institutions which outlived the lives of the Members led to the development of the Corporate body with a legal existence independent of its Members
  • The key development in the history of Capitalism was the creation of the ‘Joint Stock’ Corporate with liability limited by shares of a ‘Nominal’ or ‘Par’ value
  • over the next 150 years the Limited Liability Corporate evolved into the Public Limited Liability Corporate
  • Such “Closed” Shares of “fixed” value constitute an absolute and permanent claim over the assets and revenues of the Enterprise to the exclusion of all other “stakeholders” such as Suppliers, Customers, Staff, and Debt Financiers.
  • The latter are essentially ‘costs’ external to the
  • owners of the Enterprise
  • maximise ‘Shareholder Value’
  • There is a discontinuity/ fault-line within the ‘Closed’ Corporate
  • It has the characteristics of what biologists call a ‘semi-permeable membrane’ in the way that it allows Economic Value to be extracted from other stakeholders but not to pass the other way.
    • Tiberius Brastaviceanu
       
      It is a way to extract value from productive systems. It is a system of exploitation. 
  • Capital most certainly is and always has been - through the discontinuity (see diagram) between:‘Fixed’ Capital in the form of shares ie Equity; and ‘Working’ Capital in the form of debt finance, credit from suppliers, pre-payments by customers and obligations to staff and management.
  • irreconcilable conflict between Equity and Debt
  • xchange of Economic Value in a Closed Corporate is made difficult and true sharing of Risk and Reward is simply not possible
  • No Enterprise Model has been capable of resolving this dilemma. Until now.
  • Corporate Partnerships with unlimited liability
  • mandatory for partnerships with more than 20 partners to be incorporated
  • in the USA
  • it is the normal structure for professional partnerships
  • Limited Liability Partnerships
  • In the late 1990's
  • litigation
  • The UK LLP is supremely simple and remarkably flexible.
  • All that is needed is a simple ‘Member Agreement’ – a legal protocol which sets out the Aims, Objectives. Principles of Governance, Revenue Sharing, Dispute Resolution, Transparency and any other matters that Members agree should be included. Amazingly enough, this Agreement need not even be in writing, since in the absence of a written agreement Partnership Law is applied by way of default.
  • The ease of use and total flexibility enables the UK LLP to be utilised in a way never intended – as an ‘Open’ Corporate partnership.
  • ‘Open’ Corporate Partnership
  • concepts which characterise the ‘Open’ Corporate Partnership
  • it is now possible for any stakeholder to become a Member of a UK LLP simply through signing a suitably drafted Member Agreement
  • ‘Open’
  • supplier
  • employee
  • may instead become true Partners in the Enterprise with their interests aligned with other stakeholders.
    • Tiberius Brastaviceanu
       
      Can SENSORICA be a UK LLP?
  • no profit or loss in an Open Corporate Partnership, merely Value creation and exchange between members in conformance with the Member Agreement.
  • Proportional shares
  • in an Enterprise constitute an infinitely divisible, flexible and scaleable form of Capital capable of distributing or accumulating Value organically as the Enterprise itself grows in Value or chooses to distribute it.
  • Emergence of “Open” Capital
  • example of how ‘Temporary Equity’ may operate in practice
  • The Open Capital Partnership (“OCP”)
  • Within the OCP Capital and Revenue are continuous: to the extent that an Investee pays Rental in advance of the due date he becomes an Investor.
  • Open Capital – a new Asset Class
  • create a new asset class of proportional “shares”/partnership interests
  • in Capital holding OCP’s
  • Property Investment Partnerships (“PIP’s”)
  • Open Corporate Partnerships as a Co-operative Enterprise model
  • A Co-operative is not an enterprise structure: it is a set of Principles that may be applied to different types of enterprise structure.
  • Within a Partnership there is no “Profit” and no “Loss”.
  • Partnerships
  • mutual pursuit of the creation and exchange of Value
  • Partners do not compete with each othe
  • the crippling factors in practical terms have been, inter alia: the liability to which Member partners are exposed from the actions of their co-partners on their behalf; limited ability to raise capital.
  • they favour the interests of other stakeholders, are relatively restricted in accessing investment; are arguably deficient in incentivising innovation.
  • The ‘new’ LLP was expressly created to solve the former problem by limiting the liability of Member partners to those assets which they choose to place within its protective ‘semi-permeable membrane’
  • However, the ability to configure the LLP as an “Open” Corporate permits a new and superior form of Enterprise.
  • it is possible to re-organise any existing enterprise as either a partnership or as a partnership of partnerships.
  • the revenues
  • would be divided among Members in accordance with the LLP Agreement. This means that all Members share a common interest in collaborating/co-operating to maximise the Value generated by the LLP collectively as opposed to competing with other stakeholders to maximise their individual share at the other stakeholders’ expense.
  • facilitate the creation of LLP’s as “Co-operatives of Co-operatives”.
  • he ‘Commercial’ Enterprise LLP – where the object is for a closed group of individuals to maximise the value generated in their partnership. There are already over 7,000 of these.
    • Tiberius Brastaviceanu
       
      Can SENSORICA be one of these?
  • the Profit generated in a competitive economy based upon shareholder value and unsustainable growth results from a transfer of risks outwards, and the transfer of reward inwards, leading to a one way transfer of Economic Value.
  • This,
  • will very often impoverish one or more constituency of stakeholders
  • A partnership, however, involves an exchange of value through the sharing of risk and reward.
  • Whether its assets are protected within a corporate entity with limited liability or not, it will always operate co-operatively – for mutual profit.
  • Open Capital, Economics and Politics
  • continuity between Capital as Static Value and Money as Dynamic Value which has never before been possible due to the dichotomy between the absolute/infinite and the absolute/finite durations of the competing claims over assets – “Equity” and “Debt”
  • Open Capital Partnership gives rise to a new form of Financial Capital of indeterminate duration. It enables the Capitalisation of assets and the monetisation of revenue streams in an entirely new way.
  • It is possible to envisage a Society within which individuals are members of a portfolio of Enterprises constituted as partnerships, whether limited in liability or otherwise.
  • Some will be charitable
  • Others will be ‘social’
  • ‘Commercial’ enterprises of all kinds aimed at co-operatively working together to maximise value for the Members.
  • the process has already begun
  • Capitalism
  • superior
  • to all other models, such as Socialism.
  • It can only be replaced by another ‘emergent’ phenomenon, which is adopted ‘virally’ because any Enterprise which does not utilise it will be at a disadvantage to an Enterprise which does.
  • The ‘Open’ Corporate Partnership is: capable of linking any individuals anywhere in respect of collective ownership of assets anywhere; extremely cheap and simple to operate; and because one LLP may be a Member of another it is organically flexible and ‘scaleable’. The phenomenon of “Open Capital” – which is already visible in the form of significant commercial transactions - enables an extremely simple and continuous relationship between those who wish to participate indefinitely in an Enterprise and those who wish to participate for a defined period of time.
  • Moreover, the infinitely divisible proportionate “shares” which constitute ‘Open’ Capital allow stakeholder interests to grow flexibly and organically with the growth in Value of the Enterprise. In legal terms, the LLP agreement is essentially consensual and ‘pre-distributive’: it is demonstrably superior to prescriptive complex contractual relationships negotiated adversarially and subject to subsequent re-distributive legal action. Above all, the ‘Open’ Corporate Partnership is a Co-operative phenomenon which is capable, the author believes, of unleashing the “Co-operative Advantage” based upon the absence of a requirement to pay returns to “rentier” Capitalists.
Francois Bergeron

Thinking Space: We are in a new transition, part 2 - 3 views

  • Modern education is a typical effort that people are trying to make a product line of high-quality mind asset.
  • Without explicit, formal presentation of mind asset, we cannot efficiently connect and compose varied mind asset and we cannot well measure the value of mind asset. The issue of mind aggregation is particularly critical because individual mind is often too shallow to be high quality.
  • There is a natural gap between the presented value of the mind asset in the book and the real value of the mind asset in real world. This gap of knowledge understanding is a typical difficulty of mind asset measurement.
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  • Because of the Web, the first time in history human mind becomes a critical circulating asset in society that ordinary people can buy, sell, produce, and share.
  •  
    proposed by Kurt
Tiberius Brastaviceanu

How The Blockchain Will Transform Everything From Banking To Government To Our Identities - 1 views

  • The first generation of the Internet was a great tool for communicating, collaborating and connecting online, but it was not ideal for business. When you send and share information on the Internet, you’re not sending an original but a copy. That’s good for information — it means people have a printing press for information and that information becomes democratized — but if you want to send an asset, it’s a problem. If I send you $100 online, you need to be sure you have it and I don’t, and that I can’t spend the same $100 somewhere else. As a result, we need intermediaries to perform critical roles — to establish identity between two parties in a transaction, and to do all the settlement transaction logic, which includes record-keeping.
  • With blockchain, for the first time, we have a new digital medium for value where anyone can access anything of value — stocks, bonds, money, digital property, titles, deeds — and even things like identity and votes can be moved, stored and managed securely and privately. Trust is not established though a third party but with clever code and mass consensus using a network. That’s got huge implications for intermediaries and businesses and society at large
  • And also with government, as a central repository of information an entity that delivers services.
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  • There’s an opportunity to disrupt how those organizations work. Intermediaries, though they do a good job, have a few problems — they’re centralized, which makes them vulnerable to attack or failure
  • They tax the system
  • They capture data
  • They exclude billions of people from the global economy
  • internet of value
  • With blockchain, we can go from redistributing wealth to distributing value and opportunity value fairly a priori, from cradle to grave.
  • creating a true sharing economy by replacing service aggregators like Uber with distributed applications on the blockchain
  • unleashing a new age of entrepreneurship
  • build accountable governments through transparency, smart contracts and revitalized models of democracy.
  • The virtual you is owned by large intermediaries
  • This virtual you knows more about you than you do sometimes
  • So there’s a strange phenomenon from the first generation of the Internet where the most important asset class that’s been created is data —and we don’t control it or own it.
  • individuals taking back their identity through your own personal avatar
  • The financial services industry
  • antiquated
  • a complicated machine that does a simple thing
  • settlement
  • an opportunity to profoundly change the nature of the entire industry. The Starbucks transaction should be instant.
  • At the heart of it, the financial services industry moves value.
  • so this is both an existential threat to the financial services industry and an historic opportunity.
  • Banks trade on trust
  • Within the decade, every single financial asset, which is really just a contract
  • will all move to a blockchain-based format
  • In the accounting world, a lot of firms rely on costly audits to drive their profits
  • With blockchain, you could have a third entry time-stamped in a distributed ledger that could be acceptable to any relevant stakeholders from regulators to shareholders, giving you a perfect record of the truth and thus the financial health of an organization.
  • Nobel-winning economist Ronald Coase argued that firms exist because transaction costs in an open market are greater than the cost of doing things inside the boundaries of the corporation.
  • four costs — of search, coordination, contracting and establishing trust
  • Blockchains will profoundly affect all of these.
  • you can now synthesize trust on an open platform and people who’ve never met can trust each other to do certain things. So this results in a whole number of new business models
  • It turns out the Internet of Everything needs a Ledger of Everything, because a lightbulb buying power from your neighbor’s solar panel definitely won’t use banks or the Visa network
  • Right now, governments take tax revenue from corporations, individuals, licenses and so on. All of that can change. We can first of all have transparency in a radical sense because sunlight is the best disinfectant. Secondly, we can open up governments in a different sense of sharing data.
  • governments can enable self-organization to occur in society where companies, civil society organizations, NGOs, academics, foundations, and government agencies and individual citizens ought to use this data to self-organize and create what we used to call services or forms of public value. The third one has to do with the relationship between citizens and their governments.
  • There are more opportunities to create government by the people for the people
  • Electronic voting won’t be delivered by traditional server technology because it won’t be trusted by citizens
Kurt Laitner

The Implications of Crypto Assets Part 3: Distributed Autonomous Corporations - 0 views

  • Namecoins are mined in the same manner as bitcoins
    • Kurt Laitner
       
      Major problem here, as described by Michel Bauwens - bitcoin is libertarian and hyper exploitative and bitcoin has been captured by 7 people who can release currency into circulation - the problem is the computer is the peer, and computers cost money
  • The idea of distributed autonomous corporations already exists, so now we just have to wait for the programmers and entrepreneurs to create the applications that build on the original thought.
    • Kurt Laitner
       
      not sure how they exist then...?
  • little to no profit incentive for the developers and supporters of the projects. You can only go so far with donations
  • ...1 more annotation...
  • When you can create an encrypted email DAC that focuses on privacy and providing a quality product that can rival Gmail, it becomes much easier for the general public to care about computer security.
Steve Bosserman

Shareable: Pay-What-You-Can Cafés Share the Bounty with Those in Need - 1 views

  •  
    Though some might brand the effort as socialism, Panera Bread - what with its $4 billion market cap and 60,000 employees - is more an example of conscious capitalism in action. And, with the Panera Cares Foundation, Shaich spreads the wealth one step further in an almost commons-based venture where food is a right, not a privilege. Here, the stakeholders are valued alongside the shareholders. But that's not all. Shaich also aims to triple-leverage Panera's resources by feeding people who can't feed themselves, training and funneling at-risk youth back into the mainstream, and setting an example for other corporations to do more than simply write a check. As a result, both private (funding) and public (people) assets are brought to bear in a successful partnership rooted in sharing.
Kurt Laitner

Thinking Space: We are in a new transition, part 1 - 0 views

  •  
    Yihong Ding on the Mind factor of production
Tiberius Brastaviceanu

Partner State - P2P Foundation - 0 views

    • Tiberius Brastaviceanu
       
      we call this a custodian
    • Tiberius Brastaviceanu
       
      we call this a custodian
  • So here we have it, the new triarchy: - The state, with its public property and representative mechanisms of governance (in the best scenario) - The private sector, with the corporation and private property - The commons, with the Trust (or the for-benefit association), and which is the ‘property’ of all its members (not the right word in the context of the commons, since it has a different philosophy of ownership)
    • Tiberius Brastaviceanu
       
      so where is direct democracy in all this?
  • ...39 more annotations...
  • In a first phase, the commons simply emerges as an added alternative.
  • becoming a subsector of society, and starts influencing the whole
  • phase transition and transformation will need to occur.
  • how a commons-dominated, i.e. after the phase transition, society would look like.
  • At its core would be a collection of commons, represented by trusts and for-benefit associations, which protect their common assets for the benefit of present and future generations
  • The commons ‘rents out’ the use of its resources to entrepreneurs. In other words, business still exists, though infinite growth-based capitalism does not.
  • More likely is that the corporate forms will be influenced by the commons and that profit will be subsumed to other goals, that are congruent with the maintenance of the commons.
  • The state will still exist, but will have a radically different nature
  • Much of its functions will have been taken over by commons institutions, but since these institutions care primarily about their commons, and not the general common good, we will still need public authorities that are the guarantor of the system as a whole, and can regulate the various commons, and protect the commoners against possible abuses. So in our scenario, the state does not disappear, but is transformed, though it may greatly diminish in scope, and with its remaining functions thoroughly democratized and based on citizen participation.
  • In our vision, it is civil-society based peer production, through the Commons, which is the guarantor of value creation by the private sector, and the role of the state, as Partner State, is to enable and empower the creation of common value. The new peer to peer state then, though some may see that as a contradictio in terminis, is a state which is subsumed under the Commons, just as it is now under the private sector. Such a peer to peer state, if we are correct, will have a much more modest role than the state under a classic state society, with many of its functions taken over by civil society associations, interlinked in processes of global governance. The above then, this triarchy, is the institutional core which replaces the dual private-public binary system that is characteristic of the capitalist system that is presently the dominant format.
  • fundamental mission is to empower direct social-value creation, and to focus on the protection of the Commons sphere as well as on the promotion of sustainable models of entrepreneurship and participatory politics
  • the state becomes a 'partner state' and enables autonomous social production.
  • the state does exist, and I believe that we can’t just imagine that we live in a future state-less society
  • retreating from the binary state/privatization dilemma to the triarchical choice of an optimal mix amongst government regulation, private-market freedom and autonomous civil-society projects
  • the role of the state
  • “the peer production of common value requires civic wealth and strong civic institutions.
  • trigger the production/construction of new commons by - (co-) management of complexe resource systems which are not limited to local boundaries or specific communities (as manager and partner) - survey of rules (chartas) to care for the commons (mediator or judge) - kicking of or providing incentives for commoners governing their commons - here the point is to design intelligent rules which automatically protect the commons, like the GPL does (facilitator)"
  • the emergence of the digital commons. It is the experience of creating knowledge, culture, software and design commons, by a combination of voluntary contributions, entrepreneurial coalitions and infrastructure-protecting for-benefit associations, that has most tangibly re-introduced the idea of commons, for all to use without discrimination, and where all can contribute. It has drastically reduced the production, distribution, transaction and coordination costs for the immaterial value that is at the core also of all what we produce physically, since that needs to be made, needs to be designed. It has re-introduced communing as a mainstream experience for at least one billion internet users, and has come with proven benefits and robustness that has outcompeted and outcooperated its private rivals. It also of course offers new ways to re-imagine, create and protect physical commons.
  • stop enclosures
  • peer to peer, i.e. the ability to freely associate with others around the creation of common value
  • communal shareholding, i.e. the non-reciprocal exchange of an individual with a totality. It is totality that we call the commons.
  • It is customary to divide society into three sectors, and what we want to show is how the new peer to peer dynamic unleashed by networked infrastructures, changes the inter-relationship between these three sectors.
  • In the current ‘cognitive capitalist’ system, it is the private sector consisting of enterprises and businesses which is the primary factor, and it is engaged in competitive capital accumulation. The state is entrusted with the protection of this process. Though civil society, through the citizen, is in theory ‘sovereign’, and chooses the state; in practice, both civil society and the state are under the domination of the private sector.
  • it fulfills three contradictory functions
  • Of course, this is not to say that the state is a mere tool of private business.
  • protect the whole system, under the domination of private business
  • protector of civil society, depending on the balance of power and achievements of social movements
  • protector of its own independent interests
  • Under fascism, the state achieves great independence from the private sector , which may become subservient to the state. Under the welfare state, the state becomes a protector of the social balance of power and manages the achievements of the social movement; and finally, under the neoliberal corporate welfare state, or ‘market state’, it serves most directly the interests of the financial sector.
  • key institutions and forms of property.
  • The state managed a public sector, under its own property.
  • The private sector , under a regime of private ownership, is geared to profit, discounts social and natural externalities, both positive and negative, and uses its dominance in society to use and dominate the state.
  • civil society has a relative power as well, through its capability of creating social movements and associations
  • Capitalism has historically been a pendulum between the private and the public sector
  • However, this configuration is changing,
  • the endangerment of the biosphere through the workings of ‘selfish’ market players; the second is the role of the new digital commons.
  • participatory politics
  • Peer production gives us an advance picture of how a commons-oriented society would look like. At its core is a commons and a community contributing to it, either voluntarily, or as paid entrepreneurial employees. It does this through collaborative platforms using open standards. Around the commons emerges enterprises that create added value to operate on the marketplace, but also help the maintenance and the expansion of the commons they rely on. A third partner are the for-benefit associations that maintain the infrastructure of cooperation. Public authorities could play a role if they wanted to support existing commons or the creation of new commons, for the value they bring to society.
  • if a commons is not created as in the case of the digital commons, it is something that is inherited from nature or former generations, given in trust and usufruct, so that it can be transmitted to our descendents. The proper institution for such commons is therefore the trust, which is a corporate form that cannot touch its principal capital, but has to maintain it.
Kurt Laitner

Crisis of Value Theory - P2P Foundation - 0 views

  • accumulation of knowledge assets
  • a new class has arisen which controls the vectors of information
  • In terms of knowledge creation, a vast new information commons is being created, which is increasingly out of the control of cognitive capitalism.
  • ...19 more annotations...
  • But notice that to do this, the system had to change, the core logic was no longer the same.
  • The emergence of the peer model of production, based on the non-rivalrous nature and virtually non-existent marginal cost of reproduction of digital information, and coupled with the increasing unenforceability of “intellectual property” laws, means that capital is incapable of realizing returns on ownership in the cognitive realm.
  • capital is becoming an a posteriori intervention in the realization of innovation, rather than a condition for its occurrence
  • 1) The creation of non-monetary value is exponential 2) The monetization of such value is linear
  • What this announces is a crisis of value, most such value is ‘beyond measure’, but also essentially a crisis of accumulation of capital.
  • more and more positive externalizations are created from the social field
  • “the core logic of the emerging experience economy, operating as it does in the world of non-rival exchange, is unlikely to have capitalism as its core logic.”
  • This takes the form both of “intellectual property” law, as well as direct subsidies from the taxpayer to the corporate economy
  • crisis of realization under state capitalism to capital’s growing dependence on the state to capture value from social production and redistribute it to private corporate owners
  • The state capitalist system will reach a point at which, thanks to the collapse of the portion of value comprised of rents on artificial property, the base of taxable value is imploding at the very time big business most needs subsidies to stay afloat.
  • We live in a political economy that has it exactly backwards. We believe that our natural world is infinite, and therefore that we can have an economic system based on infinite growth. But since the material world is finite, it is based on pseudo-abundance. And then we believe that we should introduce artificial scarcities in the world of immaterial production, impeding the free flow of culture and social innovation, which is based on free cooperation, by creating the obstacle of permissions and intellectual property rents protected by the state. What we need instead is a political economy based on a true notion of scarcity in the material realm, and a realization of abundance in the immaterial realm.
  • Brains and bodies still need others to produce value, but the others they need are not necessarily provided by capital and its capacities to organize production.
  • The household and informal economies have been allowed to function to the extent that they bear reproduction costs that would otherwise have to be internalized in wages; but they have been suppressed (as in the Enclosures) when they threaten to increase in size and importance to the point of offering a basis for independence from wage labor. “
  • increasing untenability of property rights in the information realm
  • there is no more outside.
  • one of intensive development, to grow in the immaterial field, and this is basically what the experience economy means
  • Innovation is becoming social and diffuse, an emergent property of the networks
  • failure of artificial abundance
  • failure of artificial scarcity
  •  
    the passing of the capitalist age
Kurt Laitner

Smart contracts · FellowTraveler/Open-Transactions Wiki · GitHub - 0 views

  • Once voting groups are someday eventually added to OT, they will also be able to act as parties to agreements, and they will be able to take a vote in order to change their own bylaws!
    • Kurt Laitner
       
      ah governance
  • Scripted clauses can also be configured to trigger on certain events.
  • Smart contracts are most distinguished by the fact that they can have scriptable clauses
  • ...7 more annotations...
  • The script code is unable to manipulate any assets excepting those explicitly declared beforehand on the smart contract,
  • Not only can the smart contract move_funds() between these declared accounts, as its script logic dictates, but it can also stash_funds() directly inside the contract itself!
  • A smart contract can be activated, after which point it takes on a “life of its own”
  • You can also define variables in your smart contract, which persist through its entire lifetime. As the smart contract—including its internal state—continues to process over time, receipts will continue to drop into the relevant parties’ inboxes,
  • A signed copy of the original smart contract shows it as it was, when the parties first signed and activated it. Additionally, a server-signed, updated version of the contract comes with each receipt, showing the latest state
  • Once the contract expires (or is deactivated) then a finalReceipt is dropped into all relevant inboxes, after which no other receipts are possible for that smart contract.
  • Let’s say a party needs to DIRECTLY trigger one of the clauses on the contract. (Instead of waiting around for it to trigger automatically based on some rule.) For example, perhaps an escrow user wishes to execute a clause in order to DISPUTE THE OUTCOME, or perhaps an arbitrator wishes to activate a clause in order to RENDER A JUDGMENT. OT’s smart contracts can do precisely these sorts of things, limited only by your imagination (and my pre-alpha code.)
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