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Reward for Healing - Regarding Profits in Recursive Capitalism
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First of all, this is Recursive Capitalism in a nutshell: Take any problem - any problem imaginable - and Recursive Capitalism let's you say "If I don't solve this problem I don't get anything. If I do solve it - I get rewarded to the degree which I solve it and people deem it a problem of relevance". That is Recursive Capitalism. And that - is what the world has been lacking. It is an expansion pack for the world economy as we've known it.

I Oscar Herrgard, the founder of Tell, maintain this page personally. In order to stress this point, it is a bit separate from the rest of the info pages. Before you start reading, remember that this is merely a very brief touching of the subject of Recursive Capitalism. To give the subject the justice it deserves, one must go into a great deal of more depth.

In the concrete sense, regarding both wider Recursive Capitalism and Tell per se: Any human with a Tell Account will profit to the degree humanity agrees is right. Anyone who builds and maintains the infrastructure of a DRC will profit, also to the degree humanity thinks is right. And anyone who partakes in any form of climate mitigation or transition to a more sustainable operation of society, will also be eligible to profit due to the protectorate [climate] fund. To already existing businesses there is suddenly a new revenue stream to be had, and entirely new businesses may be enabled. That is Recursive Capitalism in action. In short, it all amounts to Reward For Healing, rather than for damaging and undermining. That is the core of Recursive Capitalism and why it is so needed: We have to stop profiting from breakdown, and start profiting from buildup.

Part One - A concise beginning

The problem in the world, is not that people have been profiting. It is that [some, but too many] people have been profiting from causing damage, hardship, stress and pollution [of many forms], while simultaneously people have not profited [sufficiently, or at all] from healing, aiding and improving. We have to stop profiting from breakdown, and start profiting from buildup.

The problem if I am eating too much fast food is not that there are neurological reward mechanisms in my mind. Abolishing dopamine or endorphins would not be a good solution to eating too much fast food. The problem is rather that the reward rewards the wrong thing, the unhealthy things rather than the things that truly would make one more healthy and stable. In that scenario, breakdown is rewarded, while buildup is not. If however, the neurological reward mechanisms instead start rewarding the truly beneficial and healthy actions, that is the only self sustainable solution there is and ever will be.

Part Two - In some more detail

The thing about the economic system of the last decades [to some degree actually centuries], in regards to both governments and corporations, is not that it is partially corrupt because people profit, but because many [though not all] people profit for things that do not add real value to the world, meaning in more or less unethical ways - for things, and via mechanisms that cause breakdown, and also via mechanisms who are but manipulation with smoke and mirrors [that in particularly refers to the application of merit of debt currency], mechanisms that undermine rather than benefit the world. Many profit in more ethical ways, but too much profit is still made for things that do not add actual value, and in detrimental ways. In a sound economy, when people provide solutions and pathways for reducing hardship and generating lift for society, then it is moral to profit from doing so. But if you don't provide solutions for buildup - if you don't provide pathways for reducing hardship and elevating the world - but rather cause more damage and hardship than you reduce - then it is both irrational and unsound to profit. That is why parts of the system we have grown up in are corrupt, and in particular when it comes to merit of debt currency. People who do good, sometimes don't profit enough, and often don't profit at all. People who do bad [directly, or indirectly, sometimes even involuntarily], often profit significantly and sometimes greatly. That is the only thing Recursive Capitalism is about fixing: Enabling an anti fragile and pluarlistic system [i.e. as part of the free market] where people profit to the degree they are doing good work, even in those cases where no Capitalism 1.0 business model could enable them getting revenue from that work.

Part Three - The general problem

Our world is full of problems, of bad stuff that causes damage. Yet causing all that damage is something many spend very much energy and time on doing. People work diligently on it. Pumping up millions of barrels of oil is very hard. Chopping down forests larger than France, is backbreaking. Causing vast carbon dioxide emissions, or even building nuclear weapons, is not easy. Manufacturing certain chemicals whose impact is net negative [but of course many chemicals also have a net positive impact, and some actors handle even dangerous chemicals responsibly], takes time and energy. So why do people go to the trouble of doing those very hard and demanding things, instead of lying in the hammock reading books and drinking soda all day long? One word; Profit.

As soon as humans can profit from something, businesses emerge like mushrooms, in that given sector. When something is unprofitable however, there is a desert of inaction.

So, imagine for a moment a world where we turn the tables around. Where you can profit from the opposite of causing damage. Where you can profit from helping the world, and from increasing the size of the Amazon rain forest. A world where you can profit from saving people. Where you can profit from housing the homeless. Even from reducing economic unfairness. Let us imagine that is real for a second. In such a world, what do you think would happen then to all those problems? Do you think the desert of inaction would remain? Of course not, for as we stated: 'As soon as humans can profit from something, businesses emerge like mushrooms, in that given sector.'

But it sounds like magic, right? Though, it is not magic. It is called Recursive Capitalism. That is why profits are not only necessary, but vital. The reason the world is broken, and that the doomsday clock is almost at midnight, is to a significant degree that so far you have not been able to profit from doing all those things that would heal our world. If you would have wanted to do them, you would have had to start a non-profit, and beg people for resources to fund it: You would have had no way of creating a self sustainable system. Thus, removing profit from Recursive Capitalism wouldn't make it better. It would kill the very solution, that ultimately will play an important role in saving us.

Saving the world can't be left to the arbitrary whims of donations and goodwill. Because destroying it is not. Saving the world must be self sustainable - self propelling - because the forces that destroy it are.

The great shame and hypocrisy of the last centuries is this: People have long thought it okay to be profit from harming the world, directly or indirectly, marginally or greatly. But saving the world, that "should not be rewarded", but "should be done for free". And then people ask themselves why the world is getting worse; why the doomsday clock is near midnight. This is they key to the future. This is a simple paragraph, but the historical significance of it can't be stressed enough. It is the pole star that our fall or vindication as a species revolves around.

Only those systems of nature ultimately survive that are self sustainable. That is what Recursive Capitalism is all about. And we are - every last one of us - parts of systems of nature. And so is everything we make. All our technology and products are but flagella extending from us.

At the end of the day, what Recursive Capitalism does is giving us - humanity - a web of rational reward mechanisms, that rewards those who solve problems that previously were unsolvable without the equivalent of "Royal/Governmental Decrees", in relation to how much they solve them and to how important people consider the issues to be. This means the aim is achieved in a free, pluralistic and self correcting manner.

Any guy or gal with or without a garage can partake in it. Anyone can profit from running a business that receives mintage from a DRC, and anyone who wishes can even build a DRC, for the purpose of solving any problem imaginable.

Part Four - The problem in greater detail

Recursive Capitalism is about pluralism and automatic self correction, an anti fragile system just like biological evolution, and [other faces of pluralism] free markets, and competition in systems of democracy and free speech. Recursive Capitalism is about opening up a new pathway for actors in a free world to solve previously unsolvable problems in a dynamic manner. This means: In a static system, which we all have grown up in, certain problems could only be solved if you asked the King/Queen/Government [i.e. the static - in that it's not anti fragile - power that controls the monopoly of violence] for his/her/its active support. But in Capitalism 2.0 [the sum of Capitalism 1.0 and Recursive Capitalism], any guy or gal in a garage can solve any problem without the equivalent of a "Royal/Governmental Decree". That is the gateway to an anti fragile system immeasurably more effective at problem solving. Just like when it comes to biological evolution such a development is in the end inevitable, and also as in biological evolution, such an adaptive and self sustaining system would not possible without calories.

That is why any actor in Recursive Capitalism is not a non-profit. They are for-profit for the same reason Apple, Tesla, Ford and Ben&Jerry's are for-profit. For the same reason Thomas Edison, William Shakespeare and Elvis Presley were for-profit.

We are lucky enough to be part of the dawn of a new era; The Recursive Era and the Era of Automation. I don't mean to imply these are the only things that define the coming decades, but the Recursive Era is one of the most important changes - since one of the most defining moments in the life of an organism [such as for instance humanity] is when it gains a rational and beneficial reward mechanism [or rather a web of them], i.e. the shift from gold/silver/fiat to anti fragile Recursive Value Ascription, meaning in short "Any DRC will gradually approach whatever value people consider solving the problem it solves, has". In this simile, the overarching reward mechanism that humanity gains, means the one constituted by the sum of all DRCs that exist. That is Recursive Capitalism.

It is a peacful shift on par with the Industrial Revolution. It is a peaceful revolution that let's you aid the world in ways previously not possible. Without Recursive Capitalism you could only get revenue by [either due to the use of, or due the manufacturing of a product] stressing and damaging the world [to a lesser or greater degree]. You could only chop down trees for money. With it however, you can plant trees, and receive revenue for it. Now you can help the homeless and get revenue, or clean up waterways and get revenue. Your imagination [and the laws defined by the ReCap Equation] are the only limits. That is why the Recursive Revolution is so important. [Besides also being a new third pathway of revenue for any existing business; e.g. production, services or farming etc.] [To be precise, old fashioned Capitalism 1.0 has indeed been able to partially solve a great many problems for humans, but only to some degree, and only those problems that people upfront are willing to pay for, and not complex problems that people want to be solved, yet that are unsolvable by the means of a traditional Capitalism 1.0 business model. Only Recursive Capitalism can do that.]

Recursive Capitalism will thus have a central role in the future of our world, because it provides us with a mathematically defined form of automatic self correction in ways than Capitalism 1.0 alone never managed: We no longer have to wait for 'kings and governments' to save us [which would also absurd to do for the reason they are often the ones who cause the problems in the first place]. The peaceful Recursive Revolution is yet another proof of the power of pluralism and free competition. It is just like the victory of free markets over planned economies, and of democracy over autocracy - all over again. Anti fragile systems always win over static solutions in the end.

Part Five - The ReCap Equation

All of Recursive Capitalism can be explained with one equation. Here follows the declaration of the Recursive Capitalism Equation - The ReCap Equation. For a deeper explanation a book on Recursive Capitalism will be released on a later date, a book we for now refer to as NC. We might release a stand-alone article breaking down the ReCap Equation into more detail before then.

The Drive Value [0 <= V < 1] of any given Recursive Currency (i.e. any currency in history) is in a given moment in time: The process value [0 <= p < 1] (according to the acceptor average (the average opinion, in relation to the amount accepted, of those accepting the RC in trade) of the RC) of the mechanism in civilization which this RC rewards/drives this given iteration [1 <= n < ∞] (as part of the process value - 1 - of the whole economy), multiplied with the allocation accuracy [0 <= a < 1] (both direct and indirect), according to the acceptor average of the RC (i.e. how well [1] the perceived allocation corresponds with [2] the preferred allocation), times the incarnation speed [0 < i < 1] (the speed at which an acceptor population incarnates and adapts to its own thoughts and opinions regarding the RC, which includes among other things speed of self insight and frequency of interaction with the given RC), added with the Drive Value of the previous iteration (back in time) multiplied with 1 minus the incarnation speed.

ReCap Equation Full

And here follows the shorthand version [for the sake of quick reference] of the same Recursive Capitalism Equation, with the ReCap operator invented for the purpose of Recursive Capitalism.

ReCap Equation Shorthand

The Drive Value [V] of any given Recursive Currency is in a given moment in time the process value [p] times the allocation accuracy [a] ReCapped. V equals pa ReCapped. [If we divide the Drive Value by the apoptosis inflation rate, as decimal, we get the aggregate market value of all units of the given RC.]

Part Six - A firewall against corruption

Lastly, an aspect of the self correction of Recursive Capitalism that could also be worth mentioning is this:

The two dominant currency systems of the past were the stagnant/deflationary ones [mainly systems based on precious metals] and merit of debt systems [i.e. the fiat systems of the last half-century].

Both those systems not only constitute destructive reward mechanisms [in that they reward processes that do not inherently add value], but furthermore they increase unfairness by systematically rewarding having assets with the receiving of more value. In the deflationary system, those who have simply get more as the economy grows [even if their assets are liquid], whereas the less you have the less you get as the economy grows. In the merit of debt system, the creation of new currency is leverage that unproportionally befalls those who are already well off. The more assets you have, the more newly created merit of debt currency you can get, as leverage. The less you have, the more you fall behind since you don't get [as big, or any] part of the creation of new currency. [Of course this has implications in all areas of life, not least in terms of health.]

Of course credit [and the leverage it enables] will still exist - and will always have a great value for our economy - even when merit of debt currency does not exist, only then all credit must by definition be provided in the form of pre-existing currency.

In a healthy and free market, the only way to get rewarded is by solving problems and making improvements of the world via rational investments of both the immaterial and material. In stark contrast to such a healthy system; as both deflationary and merit of debt currencies [in different ways] reward having with getting more, they are economically toxic. Programmers refer to such phenomena as infinite loops.

To be clear: Classical investing of course also means those who have the most, are best positioned to get more. However, that is not reward for having per se. It is rather reward for investing - if the investing is done well - and that is an entirely different thing. What we are talking of here - on the currency level - is rather something that goes beyond that. Deflationary currencies reward having [with getting more] - period - even without any investments at all. And merit of debt currencies offer "handicap" so to speak, for those who already have the most. You can compare it to a golf tournament where the worst player gets no handicap, whereas the best player get's the most handicap [i.e. gets most of the creation of new currency]. That is one of the most toxic reward mechanisms imaginable.

To make things even worse: Merit of debt currencies also raise asset prices [of for instance equity and real estate], without raising salaries nearly as much. This creates a squeeze of the great majority of people. And worst of all is that this squeeze is a negative feedback loop. The more people are squeezed, the less assets they can afford that would reduce the gap between them and the top, and the less assets they get; the less of the newly created credit/currency they also get [whether directly or indirectly].

With Recursive Capitalism however, in providing reward [defined by all humans together] for enabling a given DRC, and for combatting a given problem, we are actually also gifted an insurance policy that guards the fairness of the system against the two aforementioned dangers [merit of debt RCs and deflationary RCs]. A firewall against corruption is erected. A similar kind of shield of course exists in old fashioned Capitalism 1.0 as well, and is the reason why all companies fear angering their clients or customers.

In a currency ecosystem that is not anti fragile [i.e. with the absence of Recursive Capitalism], it is inevitable that currencies sooner or later become one of those things; either deflationary currencies like gold, or else merit of debt currencies.

History has taught us that: If an RC is enabled by actors [1] claiming to lack self interest, or [2] who receive their pay no matter what impact their system has on the world, or worst of all [3] who are also connected to the monopoly of violence, the seeds of corruption are planted in the system. Those factors [each to different degrees, do in different combinations] create corrosive incitement, set up parachutes and fallback routes for the enablers, and vastly increase deatachment regarding the consequences the system has for others. That is a recipe for an unfair system without accountability and transparency. In such a scenario humanity is at the mercy of the alleged altruism of those actors, and as it happens; all these three points describe the world we have grown up in. Even as such systems have a destructive impact on the world, cause unfairness to grow enormously, and as people and nature are made to suffer, the enabling actors get rewarded for it.

In the anti fragile and pluralistic system however - in Recursive Capitalism - we get a framework where any DRC enabler only gets a reward when, if and to the degree that they are doing a good job, and when they are transparent and accountable. And the size of that reward is automatically decided by everyone. That is the best booster rocket of fairness and shield against corruption known to man.

In conclusion this means that the reward for enabling any DRC is vital not only for the direct reasons [the direct work that a given DRC does], but also the indirect: It safeguards the upholding of a system that is fair, transparent and just - and that does not reward mere having, with getting more.

Part Seven - NC

As we have mentioned several times, for a truly in depth treatise on Recursive Capitalism, a book - for now referred to as NC - is going to be released. The discourse on this page is merely a scratching on the surface.

At the end of the day, any DRC enabler [such as Tell DRC Co.] is a business like any other; a grocery store, a cinema or an internet bookshop.

Recursive Capitalism means that you define a currency [1] for the purpose of mitigating or solving of a problem, and simultaneously [2] by the value of mitigating or solving that problem. With other words you recursively define a currency [thus a Recursive Currency] by the process the currency rewards. The currency drives a process based on how valuable it is, and how valuable it is is defined by the process it drives. There we have the recursive loop, and it is exactly what the ReCap Equation defines without words. [However, as we have said on other info pages, all currencies throughout history are by definition recursive currencies, including fiat currency and gold etc. The only thing is that those currencies have had very poor definitions, and were not implemented as part of a transparent and anti fragile system, and as a result they have been detrimental to the world.]

My dream is among other things to reduce economic unfairness and to restore Earth's nature and climate to its glory days, so I built a DRC for that purpose. Like any other founder and manager of an organization or a company, I hope my team will be rewarded only for what we do, if we do it well, and to the degree we do it well.

I am very excited about all the things we will now be able to do, to help turn this ship around. And I look forward to doing it alongside great people.

~ Oscar Herrgard, the founder of Tell DRC Co.