Fluid equity - Revision history

TiberiusB: /* --------------------------------- */

2026-09-17T07:29:41Z

---------------------------------

TiberiusB at 07:29, 17 September 2026

2026-09-17T07:29:00Z

TiberiusB at 07:28, 17 September 2026

2026-09-17T07:28:42Z

TiberiusB at 07:17, 17 September 2026

2026-09-17T07:17:42Z

TiberiusB: /* Argument #6 — There is no passive secondary market */

2026-09-17T02:30:25Z

Argument #6 — There is no passive secondary market

TiberiusB: /* This suggests a very important design principle */

2026-09-17T02:29:48Z

This suggests a very important design principle

TiberiusB: /* Argument #6 — There is no passive secondary market */

2026-09-17T02:28:33Z

Argument #6 — There is no passive secondary market

Show changes

TiberiusB at 01:26, 17 September 2026

2026-09-17T01:26:13Z

TiberiusB at 00:53, 17 September 2026

2026-09-17T00:53:48Z

TiberiusB at 00:52, 17 September 2026

2026-09-17T00:52:14Z

@@ Line 7: / Line 7: @@
 Individual [[contributions]] to [[ventures]] within the [[open value network]] (OVN) are transferred into ''fluid equity'' using a [[benefit redistribution algorithm]].
-The term ''fluid equity'' is the conceptual/economic term, wich must be distinguished from ''[[contribution-derived participation]]'' or ''[[fluid participation attribution]]''
+The term ''fluid equity'' is the conceptual/economic term, wich must be distinguished from ''[[contribution-derived participation]]'' or ''[[fluid participation attributions]]''
@@ Line 16: / Line 16: @@
 The ''fluid equity'' distribution for a particular [[venture]] is presented as a piechart. We call this form of equity "fluid" because within the context of one [[venture]] everyone's equity is continuously diluted as other [[affiliates]] contribute to the [[venture]].
 Moreover, an OVN is totally [[transparent]] and [[open]] (or [[permissionless]]). There is no secrecy and there is no walled activity that a contributor doesn't have access to. Even if an [[agent]] only contributes financially to a [[venture]], since there is no hierarchy between different types of contributions, this [[agent]] is considered a contributor, therefore an insider, like any other contributor, with the ability to influence the course of the [[venture]].
 =Legal issues=

← Older revision		Revision as of 07:29, 17 September 2026
Line 7:		Line 7:
	Individual [[contributions]] to [[ventures]] within the [[open value network]] (OVN) are transferred into ''fluid equity'' using a [[benefit redistribution algorithm]].		Individual [[contributions]] to [[ventures]] within the [[open value network]] (OVN) are transferred into ''fluid equity'' using a [[benefit redistribution algorithm]].

−	The term ''fluid equity'' is the conceptual/economic term, wich must be distinguished from ''contribution-derived participation'' or ''[[fluid participation attribution]]''	+	The term ''fluid equity'' is the conceptual/economic term, wich must be distinguished from ''[[contribution-derived participation]]'' or ''[[fluid participation attribution]]''

@@ Line 4: / Line 4: @@
-=========================
+=---------------------------------=
 Individual [[contributions]] to [[ventures]] within the [[open value network]] (OVN) are transferred into ''fluid equity'' using a [[benefit redistribution algorithm]].
-The term ''fluid equity'' is the conceptual/economic term, wich must be distinguished from ''contribution-derived participation'' or ''fluid participation rights''
+The term ''fluid equity'' is the conceptual/economic term, wich must be distinguished from ''contribution-derived participation'' or ''[[fluid participation attribution]]''

← Older revision		Revision as of 07:17, 17 September 2026
Line 1:		Line 1:
		+	: NOTE: This term will be retired and replaced with [[Fluid participation attributions]].
		+
		+
		+
		+
		+	=========================
	Individual [[contributions]] to [[ventures]] within the [[open value network]] (OVN) are transferred into ''fluid equity'' using a [[benefit redistribution algorithm]].		Individual [[contributions]] to [[ventures]] within the [[open value network]] (OVN) are transferred into ''fluid equity'' using a [[benefit redistribution algorithm]].

← Older revision		Revision as of 02:30, 17 September 2026
Line 209:		Line 209:


−	~~***~~	+
		+

@@ Line 212: / Line 212: @@
-==This suggests a very important design principle==
+'''This suggests a very important design principle'''
 We can divide OVN fluid equity into two layers:
@@ Line 310: / Line 310: @@
 This is an accounting relationship. But it becomes much more security-like if the system says: ''"Lynn owns a transferable 50% security representing a claim on future profits."'' Therefore: the legal significance lies less in the mathematical ratio than in what rights the ratio legally represents.
 == A potentially powerful legal architecture ==

@@ Line 1: / Line 1: @@
 Individual [[contributions]] to [[ventures]] within the [[open value network]] (OVN) are transferred into ''fluid equity'' using a [[benefit redistribution algorithm]].
-'''''Fluid equity'' is a continuously computed record of contribution-based participation in an open organization, not a passive investment contract in which capital is entrusted to an issuer in expectation of profit generated by that issuer's managerial efforts.'''
 [[Contributions]] are NOT considered as "investment", since the contributor is part of the open [[venture]], with access to governance also provided as a [[benefit]] to contributors. Contributions can be of different types: time, financial, material (equipment, tools, consumables, space), social capital, etc.. Therefore, ''fluid equity'' is not to be considered a ''security'', in the traditional legal sense.
@@ Line 12: / Line 14: @@
 =Legal issues=
 ==Crowdfunding for equity==
 In some countries today, [[crowdfunding]] for [[equity]] is still illegal. Some people have raised the concern that [[ventures]] of an OVN may not be able to get micro-[[contributions]] in cash from people, because that would be considered ''crowdfunding for equity''. But the law applies to companies that are closed [[organizations]], which don't give access to internal processes to investors, but only some limited access to information. The OVN is an open [[organization]], meaning that it provides free access to innovation and production [[processes]], as well as to governance. The individual who [[contributes]] cash for a [[venture]] becomes an [[affiliate]], or a member of a non-registered association if you will, has access to all the [[processes]] that make up the [[venture]], and can influence all these [[processes]].

← Older revision		Revision as of 00:53, 17 September 2026
Line 24:		Line 24:
	'''Reasons against it''':		'''Reasons against it''':
	* Creating a secondary market for OVN ''fluid equity'' might drive those who are close to [[ventures]] to inflate the potential of the [[venture]], according to some exit strategy that they might have. Since OVN [[ventures]] are open, it would be much more difficult in the OVN context to inflate [[ventures]] than in the current economic context and markets.		* Creating a secondary market for OVN ''fluid equity'' might drive those who are close to [[ventures]] to inflate the potential of the [[venture]], according to some exit strategy that they might have. Since OVN [[ventures]] are open, it would be much more difficult in the OVN context to inflate [[ventures]] than in the current economic context and markets.
		+	* The legal risk of conflating ''fluid equity'' with a ''security'' becomes considerably higher if ''fluid equity;; is made transferable, marketed as an appreciating investment, or sold to passive contributors.

← Older revision		Revision as of 00:52, 17 September 2026
Line 1:		Line 1:
−	Individual [[contributions]] to [[ventures]] within the [[open value network]] (OVN) are transferred into ''fluid equity'' using a [[benefit redistribution algorithm]]. [[Contributions]] are NOT considered as "investment", since the contributor is part of the open [[venture]], with access to governance also provided as a [[benefit]] to contributors. Contributions can be of different types: time, financial, material (equipment, tools, consumables, space), social capital, etc.. Therefore, ''fluid equity'' is not to be considered a ''security'', in the traditional legal sense.	+	Individual [[contributions]] to [[ventures]] within the [[open value network]] (OVN) are transferred into ''fluid equity'' using a [[benefit redistribution algorithm]].
		+
		+
		+	'''''Fluid equity'' is a continuously computed record of contribution-based participation in an open organization, not a passive investment contract in which capital is entrusted to an issuer in expectation of profit generated by that issuer's managerial efforts.'''
		+
		+	[[Contributions]] are NOT considered as "investment", since the contributor is part of the open [[venture]], with access to governance also provided as a [[benefit]] to contributors. Contributions can be of different types: time, financial, material (equipment, tools, consumables, space), social capital, etc.. Therefore, ''fluid equity'' is not to be considered a ''security'', in the traditional legal sense.

	The ''fluid equity'' distribution for a particular [[venture]] is presented as a piechart. We call this form of equity "fluid" because within the context of one [[venture]] everyone's equity is continuously diluted as other [[affiliates]] contribute to the [[venture]].		The ''fluid equity'' distribution for a particular [[venture]] is presented as a piechart. We call this form of equity "fluid" because within the context of one [[venture]] everyone's equity is continuously diluted as other [[affiliates]] contribute to the [[venture]].