The legal structure specifies and organizes relations between the organization and other organizations (and institutions) in the ecosystem. For example, it determines how information and resources flows beyond the organizational membrane and in between organizations. It is dependent on social norms and laws, normally enforced by institutions, including the state. Thus, this structural dimension is focused outwards, and can be considered as an interface layer between the organization and its ecosystem.

The legal structure is part of the organizational structure. It must be considered at the same time with other structural elements such as culture and ethos methodologies, infrastructure because all these elements are interrelated and form a holistic system. In other words, it cannot be considered in abstraction of these other structural elements.

We must note that the OVN model is not yet codified by nation states, i.e. open networks and network-type socioeconomic activity are not specified in legal code, they are not regulated. As such, OVNs are not illegal entities, they are alegal, i.e. operate in absence of legal code. The 4th Sector initiative undertaken by Sensorica aims at working with governments to create a legal framework for OVNs and regulate network-type activity. This task is very difficult, as the 4th Sector develops outside of the market and beyond the reach of nation states (transnational). Nowadays, most nation states take an antagonist position with respect to 4th Sector entities and activities.

This page discusses possible legal structures for open value networks?

We gathered some ideas from a discussion took place on Google+ Open Value Network.

Main constraints

The OVN can take many forms, and serve many purposes. In order to operate in a commercial sense in most parts of the world, some formalization is required. Other approaches may stick with strictly peer-to-peer transactions and liability, avoiding many of these legal considerations. See also: What is a value network?

A global large-scale dynamics value network

advocated by Tibi for high tech innovation

Characteristics

a global organization, involving individuals from different countries that are submitted to different laws.
a very dynamic organization, operating at large scale, taking in large, as well as micro-contributions
rely on the NRP-CAS for redistribution of revenue
open / permissionless (access to processes of value creation and distribution)
transparent (access to information)
decentralized (bottom-up allocation of resources)
meritocratic

Legal framework

In Canada the non-registered association is used by Sensorica.

Affiliates form a non-registered association, which is constituted either by a written agreement, or by a verbal agreement, or by the intentions that emanate from practices.
External liability is absorbed by the Custodian, as all shared assets are legally owned and managed by it, or multiple Custodians. A Custodian is essentially a Trust.
Liability on the market side is absorbed by the Exchange firms, which act as interfaces with the market.

In the US the non-registered association is replaced with a general partnership.

A local, small scale value network

advocated by Steve, to be applied on local food systems, local food production and distribution.

An informal value system

advocated by Ben, for a transparent trust-based p2p "gift ecology" that avoids legal formalities

based around a shared database and accounting / evaluation system
may connect to other networks via common languages and maths
membership is collectively managed through demonstrated achievement and peer review
credit is based on trust, an individuals extrapolation of a peer's reputation data
currency is shared via gift / donation, with a record of related or reciprocal flows
ownership of assets and resources is independently arranged
collective branding is tied to the individuals who make use of it

A global large-scale network that only allows control of production at the edges of the value flow

advocated by Apostolis X.

Allows control of production by workers-consumers (amount of control based on the percentage of work they do, or the percentage of commodities they consume)
Use of a universal template for the creation of multiple currencies that allows money to control production only on the edges. (Only the issuer of a currency(worker) and the consumer of a currency influences its price, not intermediaries)
Intermediaries(investors) invest on projects but do not take part in the decision making.
Use of Social contracts and algorithms that protect the network without the support of the Legal System.
Creation of a global non-profit organization that will protect the values of the network and which will provide a central currency exchange system.
All the properties of tibi's network with some possible changes, using the erp system as a tool of coordination and optionally as a tool of redistribution of revenue.

Legacy

See this topic on Sensorica's document.

Propositions

Some (Tiberius Brastaviceanu, add your name here) maintain that the OVN needs to stay informal, with legal structures at the periphery of the network. These legal structures are seen as service providers to the network, which means that they are part of the network as long as they provide an essential function with a sustainable level of satisfaction (for network affiliates). For example, the role of the Exchange firm is to act as an interfaced between the market and the OVN (to assume legal liability for products that the OVN produces to exchange on the market, conduct transactions, etc.). The Custodian is another legal entity that acts as a recipient for funds, and/or as a legal owner of material (lab space, equipment, ...) and/or immaterial assets (logo/brand, virtual infrastructure like websites, social media channels, etc.).

Sensorica has remained informal since its inception in early 2010. Tactus Scientific Inc. was created in very early as an Exchange firm. In 2014 a non-for-profit was created to mediate relations between the network and academic and governmental institutions.

NOTE: migrate content from Legal framework here.

Legal structure

Contents