Examples of past-looking benefit distribution algorithm

This page presents examples of Past looking benefit distribution algorithm implemented by different OVNs.

Past looking applies to economic processes (ventures) that originate within the OVN, for which the deliverable is not clearly defined, that consume resources to create something valuable, which could be a product to be later exchanged on the market for revenue. The % of total revenue for every contributor is calculated based on past contributions. The revenue is unknown at the beginning or during the process. Past-looking contribution accounting schemes can be fluid equity-based or debt-based.

The past-looking scheme requires ledgers to record economic activity., and relies on validation as truth: what has been recorded has happened.

The future-looking scheme relies on a different type of validation, to know that what has been planned has been done.

For products provided by the OVN

Product development is a very long and resource intensive endeavour. Since the level of commitment needed from affiliates is higher, some Sensorica affiliates advocate an equity-based contribution accounting. In other words, contributions are evaluated and transferred into fluid equity. All the contributors have some fluid equity in the venture, which is a claim on revenue for the entire life of the product, whether they remain active affiliates of Sensorica or move on to other activities not related with the network.

For services provided by an OVN

Unlike the development of products, services are easier and less resource intensive to establish than products. Since the level of commitment needed from affiliates is lower, compared to product development ventures some Sensorica affiliates advocate a debt-based contribution accounting. In other words, contributions for setting up the venture are evaluated and transferred into debt, that will be paid back from future exchanges (sales). The rationale here is to avoid long-term rent extraction from the service-based venture.

Sensorica's 3D course venture

The 3D course was a service Sensorica affiliated provided in Montreal in the summer of 2014. Open the value accounting page for this project. Open the Value equation document