A distributed economic measurement protocol for an ownership economy + seeking

A distributed economic measurement protocol for an ownership economy

Team member names
Dick Bryan

Short summary of your improvement idea
Protocol that supports coexisting multiple modes of measuring assets can enable openly-discussed and evolving perspectives on what constitutes ‘value creation’ in an economy.

What is the existing target protocol you are hoping to improve or enhance?
Asset definition and measuring ownership. There is widespread interest in asset ownership in a network, giving agents emerging ‘skin in the game’ (e.g. the “Ownership economy” thesis of Jesse Walden). But how are assets defined and their value measured? Standard economic and accounting conventions use narrow definitions: assets are measured by reference to expected profit. The function of money called ‘unit of account’ (UoA) embeds this calculus: an external third party (the state) defines both the money unit and the accounting structure to which it applies.
Defining assets through protocol – a code that structures economic communication and coordination and thus defines economic-organizational capacities – enables new standards of definition and measurement. Moreover, there could be multiple UoAs within a network (not a monologic): what constitutes ‘assets’ and how agents count (value) them can be determined by distributed processes that incorporate diverse views. We just have to throw off the presumed constraints of the externally given monologic, and possibilities will be revealed.

What is the core idea or insight about potential improvement you want to pursue?
How do you measure with multiple UoAs and prevent the propensity to collapse to a single unit, yet guarantee interoperability across the units? Answers lie in the specification of rights and obligations around asset ownership: holding asset ownership (‘stake’ or ‘shares’) in non-reducible UoAs, while lines of credit, collateralized by stake, have a shared UoA. The financial logic is that assets are measured in their unique attributes but fully-collateralized credit, thought as a derivative on those assets (financial exposure to those assets; an option in case of default) can be measured in a common UoA. (E.g., in weather derivative markets, rainfall and temperature must be measured in different units but their derivatives (futures and options) are measured in the same unit (dollars).)

What is your discovery methodology for investigating the current state of the target protocol?

  1. Comparative analysis of economic models that don’t collapse to money and relation to financial derivative logics, especially:
    A) Arrow & Debreu’s Theory of Value 1959
    B) Sraffa’s Production of Commodities by means of Commodities 1960
    C) Bryan & Rafferty’s Capitalism with Derivatives 2006
    D) Bryan, Lopez & Virtanen’s Protocols for Postcapitalist Expression 2023
  2. Modeling of a market that complies with the protocol proposal

In what form will you prototype your improvement idea?
A draft proposal (formal protocol model) with expert feedback.

How will you field-test your improvement idea?
A restricted pilot and workshop with experts on ‘money’ and clearing house protocols.

Who will be able to judge the quality of your output? Ideally name a few suitable judges.

Jacquline Mallett, Prof. Computer Science (University of Reykjavik); member, Supervisory Board of Iceland’s Central Bank. Works on modeling distributed systems.

Ethan Buchman, Co-founder Cosmos and Informal Systems, works on collaborative finance networks and redefining money.

Ethan Frey, co-founder CosmWasm.

Yanis Varoufakis, economist and political activist.

What is the success vision for your idea?
Widespread recognition that distributed, non-state tokens give possibilities for reimagining a socially-aware, environmental, communal-yet-scalable approach to economy.

How will you publish and evangelize your improvement idea?
Open source protocol model documentation in Postcapitalist Discourse and Liberatory Computing Library. Initial presentation at Finance and Society Conference, Sheffield, September. (Finance and society conference 2024 – Finance and Society Network)


Hi Dick,
I believe we are thinking along the same line. Would you like to join us ?

Hi team.Your internet of value analytics are really interesting. I’ve started reading about your IOV work/project/book , and the parallels of our agendas are striking, albeit that we go about it in different ways. There are not enough people/organizations taking economic theory, theories of value and ethical values into account, so we must build close contact to nurture this focus. Right now, we are doing things differently - my emphasis, within ECSA (Economic Space Agency https://economicspace.agency/ ), lies at the level of staking protocols and mechanisms to use stake markets to reveal approaches to value within a network. Thats a different focus/priority from what you are focussed on in this application. But compatibility between us should be explored and we must make it our purpose to draw closer.

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Thank you for going through our idea, looking forward to your thoughts as you finish up the chapters. Would love to read more about what you’re doing as well. Going through ECSA.

“staking protocols and mechanisms to use stake markets to reveal approaches to value within a network”, can you elaborate on this please in simple terms?

we try to capture value at an individual’s time log level. And we are focussed on sraffian theory of value (labour + market validation) to unlock value thus redistribution of value becomes equitable.

Can share our whitepaper with you, if you’re curious.

Thank you!
Quick Qn: About MosesSamPaul - Author of TheInternetOfValue which identity would you trust more?

Interesting that you are using Sraffian categories. I think i see how you are trying to measure. Only in the last couple of years have i come to realise how astute Sraffa’s framing is - that he describes what could be a capitalist or ‘early’ post-capitalist economy by reference to class, but without the traps of Marx. I won’t reply in detail right now, for i am deep in writing a paper about units of account . Indeed, it’s based heavily on lots of reading in the Sraffa archive, and esp Sraffa’s disagreements with Keynes. But you did ask for a simple statement about staking and value.
Here is the draft of a paper - a reply to a review of our book Protocols for Postcapitalist Expression. Both the review and my reply will soon appear in the Journal Finance and Society. Post an email address and I’ll forward.

Yes, Sraffian is best if we can quantify the person (credit score to wellbeing score) and the labour that has been exerted within the context of an organisation, in our case a skill based community (DAOcommons) and both these has to work within chunks of time that is captured and validated which is given by our value capture protocol at a transaction level.

Would love to read the review and the reply, kindly send them to theinternetofvalue.xyz@gmail.com

Thank you!

I’ve been spending time recently in the Sraffa archive, and working through the implications of Sraffa’s critique of Hayek: the issue of commodity rates of interest, and Sraffa’s refusal, despite Keynes’ requests, to collapse these commodity rates to money prices. Does this open the possibility of framing an economy with multiple units of account, where, for example, wellbeing would be measured in its own units. I note your focus on time units of measurement, but its not clear to me how that would work - how it wouldn’t succumb to Marx’s critique of Ricardian value . But it is an important framing for practical use. Personally, im contemplating that the universal unit of measure is a risk uniit - that i believe can apply across multiple units of account. More on that when i finish the analysis!!
All best,


We appreciate your deep dive into Sraffa’s work and its modern implications. You’re making my life easier! Your understanding/ reiteration of sraffa’s POV of avoiding the reductionist view of commodification aligns with both our philosophy of multi-dimensional value assessment.

Individual Risk as Wellbeing Score
At TheInternetOfValue, we’ve operationalized the concept of wellbeing as a quantifiable risk unit, meticulously measuring various aspects of human activity and their outcomes (see the below screenshots for detailed metrics and ratios).

Based on the above wellbeing protocol we arrive at a baseline wellbeing score for each individual and measure it daily and then validate it through a wellbeing focussed community.

Now, this takes care of the individual risk and if you’re curious how this will be managed at and org level then DAOcommons protocol is the solution.

Org / Community Risk - Risk -adjusted DVF

We measure the ‘value flow’ in the context of community interactions, which resonates with your notion of risk units at an org level and we use Risk-adjusted Dcisounted Value Flow method within the skill-based community to mitigate that.

More on the absolute param and ratios over here:

How do we envision this acting out?
A human stock market that powers community banking

This blog on community banking and the human stock market, outlines the integration of individual and communal wellbeing into a coherent economic model This exemplifies our dedication to a nuanced and comprehensive value assessment that respects the individual’s contribution within the broader community fabric.

We’re excited about the potential synergy between our frameworks and look forward to exploring this convergence further.

This conversation is just the beginning, and we look forward to developing a dialogue that could lead to an innovative partnership.