Wed 1 Aug 2018 10:06AM

Turning Externalities into Internalities

BH Bob Haugen Public Seen by 133

This topic was suggested by @michelbauwens1 in this comment in the Introductions thread. I thought it was worth a thread of its own.

I copied the text from that comment here, unfortunately losing some of the formatting, but the meaning should be clear.

Title: Turning Externalities into Internalities

Subtitle: Is it possible to produce for human needs without externalities

Chapter 1: Introduction and Context

The emergence of post-subordinate autonomous workers: the role of labor mutuals and platform cooperatives in the commons economy (the blockchain economy as a tool for contributory cognitive labor)

** crypto economy as a re-balancing of power between labor and capital

** crypto economy as network-dominant economy beyond corporate and state power

** role of labour mutuals

Value in the Commons: a summary of previous findings (value sovereignty, transvestment stragegies, reverse cooptation of capital for the commons)

Evaluating the Emergence of the Crypto Economy from the point of view of the commons (mobilizing competency networks for common goals; towards commons-based DAO’s ?) so

** critique of market totalitarianism (leviathan, hobbes and gaia)

** crypto as sovereignity of the corporate class vs sovereignty of civil society (need to disentangle both) (five scenario’s of manski)

** distinguishing distrlbuted ledgers from the blockchain (explain ledgers and DLT’s), also in relation to trust

** rebalancing capital and labor for cognitive production: learning from the token economy

** transforming the token economy for the commons (in detail, what the shift entails, f.e. From competitive to cooperative games, from smart contracts, to ostrom contracts)

** two kinds of economics (Polany’s distinction)

** scaling trust (big brother to little brother)

** from govt and corporate, third party coordination to autonomous network coordination

The Role of Accounting in the Shift towards the Peer Production of Everything (accounting as mediation with the physical, bringing stigmergy to material production through open and shared supply chains, )
** history of ledgers ?

** explain 3 layer model

** explain functional governance transition

** local vs global (example from city graph 3.6)

Solving the Problem of Externalities: towards an externalities-free mode of production ? (how can externalities be normalized as internalities in predistributive social distribution and regenerative ecological production)
Chapter 2: Evolutions in Accounting

Accounting for contributions (positive social)
** predistribution within commons

** basic income in society

Maintaining acceptable social distribution, i.e. relative equality in the distribution of value (negative social)
** from redistribution to predistribution

** acceptable inequalities

** learning from the past (hunter-gatherers, ancient democracies, medieval communes)

Respecting the Doughnut (negative ecological): how to stay within planetary boundaries while providing for human needs

Thermo-dynamic Accounting or: biophysical accountability (positive ecological): accessing thermo-dynamic flows in open and shared supply chains

Chapter 3: The Emerging toolbox

Supply chain projects: Provenance, Oxchain, Open Motors, Wikifactory, Envianta ?

Distributed ledgers Holochain): going beyond extractive blockchains

** distributed ledgers as the open and shared supply chains

** tokens for valuing non-mercantile value

** generative finance: social and ecological

Ostrom Contracts ? (David Dao): smart contracts for commons-based DAOs

REA Accounting for Eco-systems (from corporate to ecosystemic open and shared supply chains)

Ethical current-sees? Monitoring flows and rewarding contributions: The Economic Space Agency: mutualizing investment, risk-taking and speculation (commons-based derivatives for financing future common production), Faircoin/Commoncoin + learning from labor allocation in intentional communities (Allen Butcher’s work)

Tokens for Regenerativity (Regen’’s Ecological State Protocols; circular financing of regenerative practices)

Impact Accounting through the Common Good Economy

Global Thresholds and Allocations for biophysical accountability (the Reporting 3.0 framework)

Large scale governance (Daostack’s holographic governance)

Designing Cooperative games instead of competitive games (RChain) ?

DAO’s for natural agents: the Terra0 project for augmented forests

? Trustlines Network ?


Bob Haugen Wed 1 Aug 2018 10:55AM

This is the kind of topic that some of us think OAE was created for: software for transforming the economic system toward cooperation between all living things and their ecosystems. not just people.

As Michel mentioned, a lot of projects are working on parts of this complex problem. Will they remain isolated from each other? Or can they all meet and evolve together, taking the best ideas from each initiative, and become a replacement for extractive capitalism?

A suite of open apps that can all work together and adapt to different infrastructures might help, although the critical component is people on the ground organizing themselves..

@lynnfoster @ivan116 @luandrovieira @tiborkatelbach @mayel @ahdinosaur and I (and others who are not present in the OAE Loomio group) have been working on such a suite of apps since the start of this group 4 years ago. (It moves slowly and intermittently.)

I recently started to sketch out the full suite of required apps in the ValueFlows github group. Here is an overview. It's just a start, I expect other people here have started similar outlines. I'm focusing on apps for P2P economic networks to start with.

@tiborkatelbach and Communecter have started something similar, which we want to collaborate with, in their Pixel Humain group, for example, http://co.tools/ .

@jimwhitescarver and https://diglife.com/social-ledger/ have another approach to suites of cooperative software. As do some of the other newer OAE participants. Some of those approaches offer suites of existing open-source apps that were not originally created to be parts of suites and put some connecting tissue around them. That might be another way to evolve all of the projects Michel listed into a cooperative whole. Or probably both of those directions (creating apps meant to cooperate with each other, and putting cooperative frameworks around existing apps) can help each other.

I'm sure other people here can extend this set of ideas. And I am sure I forgot to mention people who should have been mentioned. Please forgive me and add yourself and your related work below.


Michel Bauwens Thu 2 Aug 2018 3:13PM

this is very useful dear Bob,

I think the matter you have been working on, I could be wrong, is the ability for everyone to communicate and organize seamlessly with non-closed tools,

in our project, we want to go one step further, i.e. actually coordinating the production of products and services,

paradoxically, it's the libertarians who are furthest in this, but in their own sometimes a bit twisted ways (if you ask me ), but then, just as we transform the idea of netarchical private platforms in that of platform coops, so we can adapt and tweak ledger technologies to our common(s) needs,

this is what my study this summer addresses,



Bob Haugen Thu 2 Aug 2018 3:19PM

Goodness! We apparently don't communicate very well. Our main goal is always the coordination of production and distribution of goods and services. All else is chatter.


Michel Bauwens Thu 2 Aug 2018 3:21PM

hmmm . well I don't follow the discussions on open apps very well but it seemed to be about secure scutlebut and related communication software, but I am happy that I was wrong in this impression


Bob Haugen Thu 2 Aug 2018 3:24PM

Where did we go wrong? Where did we lose that thread of the ongoing conversation?
We're looking at three different infrastructures: holochain, ActivityPub, and scuttlebutt, but those are infrastructure for economic coordination, not just chatter.
Although they also carry chatter, and we think the social and economic networks need to be seamlessly integrated, because a lot of the chatter is about economic activities.


Bob Haugen Thu 2 Aug 2018 3:29PM

If you look at the current list of apps-to-be-developed, with more to come, they already include recipes for production and planning for production and distribution.
I'll get into execution of plans next, and then coordination, which requires coordination signals as well as reactive replanning with humans in the loop


Michel Bauwens Thu 2 Aug 2018 3:30PM

yes, this integration makes a lot of sense and is necessary,


Michel Bauwens Thu 2 Aug 2018 3:31PM

can you resend that full list,

perhaps this kind of summary, 'what is being worked on', could be your ideal contribution for our report, since we discussed your contribution ?


Bob Haugen Thu 2 Aug 2018 3:33PM


Bob Haugen Thu 2 Aug 2018 3:38PM

Depending on timing for report, we're working with some other people on implementation plans. One implementation is already underway, but not yet with the planned infrastructures. So then you'd need to think about how much detail you want.

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