These green dots represent value created internally. This may mean the building of some prototype, computer or physical, producing some designs or some music, or growing or cooking food, or providing some tools or advice. It is all about experience. This is not about money or things. It is about experience and what people offer in terms of resources.
The evaluations given above are not a substitute currency. They are subjectively enumerated values. This replaces the need for money. They are a record of how valuable people see their engagement with others. There is no absolute evaluation, no “objective” or authorative enumeration anything close to money.
The maths based on this might be interesting, the distribution pattern of a person’s evaluation over time, the mean and so on. It might be possible to see who is producing most value, in the eyes of others. It might even be possible to apply the value algorithm similar to google page rank. Consider the initial starting position:
(where V is the value of any person i at time 0, with N the total number of people)
And the iterative equation which tends to a relative value of any person to any other person in the entity:
(where V is the value of any person i, d is the “damping factor”, N the total number of people, M is the set of people who evaluate person i, the value of pj at time t)
Such an equation might highlight particularly “valuable people”. It might also be used to root out those individuals or cliques who are gaming the system, producing “fake value”, who are in it purely to take advantage of the doubling protocol at the boundary entry.
This kind of equation is something that will be useful for sure, and will evolve over time, as the entity evolves, just as google’s page rank algorithm has. Nevertheless, it is essential to emphasise that the design of the entity has its own values (mine I guess;), and that is for equality. These are merely number games. What happens in the real world is what matters. Whatever equations we produce that play with subjective value is gameable only in the sense that we use the equation for us to highlight those people whose work, effort, insight, we actually value. It is hoped that gaming induces a positive value.
Play around with this simple mock-up of a relative value system on gdocs. Barny ends up making more than his equal share because of the relative values of everyone else.
Which is why so much effort is being made to design the outer boundary as self-enclosed as possible. If the outer boundary that constitutes scalable invitation, MTTP, has its own sustainable “income”, it means that everyone within the entity has at least the money they brought covered, and if the entity is healthy, then they are guaranteed to double the money they brought. At whatever level of scale, this entry guarantee is a healthy living, individually, in current 2012 prices. It gives those within the entity the best environment for them to produce value, simple, without the need to make it commercially viable, and thus compromising their ideals and ethics and design to “fit” the current organisational situation, the mess of bureaucracy and money-making directives.
[See also this description.]
The initial boundary of engagement is very important indeed. If someone is personally invited to attend, it is advised that they go through the following procedure. The objective is that they leave with a greater understanding of where they are in terms of business practice, build some network relationships, clarify what they offer and their aims, and perhaps have actually demonstrated their skills. For the entity, which consists of the other people who are currently there, it is about accessing the resources of that new individual as quickly as possible, their skills, awareness, assets, get them connected and useful, producing value.
It is essential to realise that the filter is a direct confrontation of internal value and external institutional thinking and practice. Money might be the primary motivation that attracts people to the economic entity, with the guarantee of “double your money” when invited. This motivation interfaces directly with the internal culture of the co-creation of value. It is not an understatement to restate: this engagement is very important indeed. Even for those who are approaching the entity without interest in money, they may find the boundary offensive, and such an attitude could prejudice their awareness and contribution, blinding them to the opportunity to manifest social value.
Depending on the context, the filter contains the following elements. Ideally, there will be a regular cycle of up to ten people. These are conducted by “experts”, people who have self-selected to lead the processes, invited to do so by other members of the entity. The role of the person conducting the filter is very important, because they have the ability to spot “talent” and provide personal recommendations to other members directly. I need to know if particular people turn up, those with a fine sensitivity of mind, and are willing to play, capable of improvising given challenging circumstances.
The filtering process is self-selecting. There is no judgement made by anyone, and it is not compulsory. It is about self-determination. But this is less to do with willfulness and individual efforts which give rise to ego and competition, and more to do with open-mindedness and collective effort which give rise to community and collaboration.
Although the diagram shows an arrow entering the entity, if the filtering works, the entity will grow into the social world of the individual. It is less about people joining, learning what the rules are etc within the “group”. If conducted well, people will feel listened to and valuable, and thus the entity will have grown into the social space of the individual. The community will have grown. And even the notion of “invitation” may be reversed, and it is the new person who is inviting everyone within the entity into their lives, to help them out with work issues and their local community.
(from original eco^2 document)