Loomio
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 ?

MB

Michel Bauwens Thu 2 Aug 2018 3:40PM

will discuss with alex, my co-writer, he's arriving in chiangmai tomorrow,

Michel

M

mike_hales Fri 3 Aug 2018 8:29PM

Just finding my way into OpenApps, pardon me if this is a dumb question . . In @bobhaugen github list of VF-compatible apps I notice CoBudget is not present. I get it that Loomio may be escluded - s social media (?) app, not value system? - but why would CoBudget be absent?

BH

Bob Haugen Fri 3 Aug 2018 10:01PM

Two answers:
1. I am not finished and will list more apps, and
2. CoBudget preceded the OpenApps initiative and while I love it and consider to be part of the picture, am not sure how VF-compatible it is and would want to ask the people who are working on it if they minded it being included in any case.
We try not to make too many rash claims.

MB

Michel Bauwens Sat 4 Aug 2018 7:22AM

not sure again if this is the proper place, but Bob, this is for you ...

first of all, see this article, that shows successfull blockchain trials for supply chains, https://which-50.com/commbank-and-logistics-giants-complete-blockchain-trade-from-regional-victoria-to-germany/?

and what it all means in terms of industrial structures see the article quoted below,

but in fact, I don't think their analysis goes far enough, because in the ethereum networks, corporates are already subsumed to a eco-system consisting not just of companies, but of a multitude of other players, including lots of single individuals:

QUOTE

Blockchain-Based Corporate V-Networks

= "V-form networks consist of a number of fully independent companies that effectively operate as one vertically integrated company through blockchain technology". 1

Contents

[hide ( https://wiki.p2pfoundation.net/Blockchain-Based_Corporate_V-Networks# )]

Contextual Citation[edit ( https://wiki.p2pfoundation.net/index.php?title=Blockchain-Based_Corporate_V-Networks&action=edit&section=1 )]

"A blockchain economy will have more, smaller firms linked together by protocols. ... It’s worth pointing out that these networks are inherently global, and any regulatory questions global as well."

  • Chris Berg, Sinclair Davidson and Jason Potts 2

Description[edit ( https://wiki.p2pfoundation.net/index.php?title=Blockchain-Based_Corporate_V-Networks&action=edit&section=2 )]

"The Nobel laureate Oliver Williamson distinguishes between U-form companies and M-form companies.

Traditional U-form companies are unitary — their units are divided by business process (for instance, accounting, human resources, component manufacturing, assembly) and are not treated as separate cost centres.

M-form companies are multidivisional — their units are self-contained divisions that report profits and losses to an umbrella central body. They’re fully owned by a parent company, but they tend to have their own business services (accounting and human resources departments, for instance) and even market relationships.

But now we see a new corporate form — the V-form network — made possible because thanks to the application of distributed ledger technology to supply chain problems.

These V-form networks consist of a number of fully independent companies that effectively operate as one vertically integrated company through blockchain technology, coordinated and supplied by a third party.

This is a big change to the nature of the firm. We can already see V-form networks in the real world. They date as far back as January. It is surprising the economics community haven’t noticed them yet.

...

Blockchains can work to coordinate supply chains without the need for either (traditional) vertical integration or regulation. The vertical integration is outsourced to a distributed ledger. The blockchain provides the managerial service that coordinates each ‘unit’ (that is, firm) in the supply chain.

Regulators in any country can deal any firm in the supply chain as if it was a small unit of a larger, global company.

Each firm in the supply chain get the benefits of vertical integration through a network rather than a hierarchy.

...

In the V-form network, the blockchain’s token establishes the consortium, and incentivizes cooperative behaviour.

The token also serves to move rents around the network. In this way, the blockchain provides a market mechanism to solve the sort of bargaining problems described by another Nobel laureate, Ronald Coase, that may occur as the network operates.

Outsourced vertical integration could be applied to many industries that are now integrated. Energy firms that currently integrate the exploration, production, generation, and retail of electricity might be better decomposed, with blockchains and tokens taking the place of head offices. The token economy, rather than energy regulators, could make decisions about the distribution of rents around the network." (https://medium.com/cryptoeconomics-australia/outsourcing-vertical-integration-introducing-the-v-form-network-78e1aa93a814)

Example[edit ( https://wiki.p2pfoundation.net/index.php?title=Blockchain-Based_Corporate_V-Networks&action=edit&section=3 )]

The IBM and Maersk TradeTech[edit ( https://wiki.p2pfoundation.net/index.php?title=Blockchain-Based_Corporate_V-Networks&action=edit&section=4 )]

Chris Berg, Sinclair Davidson and Jason Potts:

"Two weeks into 2018, IBM and the shipping giant Maersk announced a joint venture to develop a digital supply chain management system on their Hyperledger blockchain platform. Hyperledger is a private blockchain which requires permission to access.

In a previous Cryptoeconomics piece, we described how international trade is an information problem. As goods are shipped around the world, they are accompanied by information — really stacks of paperwork — that describe their provenance, destinations, regulatory and tax liabilities and so on.

In the IBM-Maersk system, each firm and bureaucracy in the supply chain — producers, shippers, port authorities, regulators, importers, retailers — will access and update a shared blockchain ledger containing all the information needed by each organisation.

And each organisation would have access to that information everywhere, ensuring complete visibility on where goods are in the world and which economic and regulatory hurdles they next need to overcome." (https://medium.com/cryptoeconomics-australia/outsourcing-vertical-integration-introducing-the-v-form-network-78e1aa93a814)

M

mike_hales Sat 4 Aug 2018 8:12AM

And so . . . it begins

MB

Michel Bauwens Sat 4 Aug 2018 8:43AM

getting good responses from your page already

BH

Bob Haugen Sat 4 Aug 2018 12:53PM

Examples pls? Might help as I continue to list and then describe more apps.
Want to put the apps for coordination of production in the swim explicitly, so other people don't miss that is and has always been our major focus.
It's just that all those other apps are necessary and often precursors.
Want me to keep that P2PF page in sync?

MB

Michel Bauwens Sat 4 Aug 2018 5:58PM

I can't see what this is referring to in terms of examples ?

Alex, our co-researcher has arrived, and we begin working officially this Monday, we will then specify our expectations about your contributions, but essentially it is to describe what you know about the technologies being prepared for effective coordination of production within an ecosystem

BH

Bob Haugen Sat 4 Aug 2018 7:04PM

I can't see what this is referring to in terms of examples ?

I meant,

getting good responses from your page already

Which page did you mean?

Responses can be useful if they tell what people got something out of, vs maybe what they didn't...

BH

Bob Haugen Sat 4 Aug 2018 7:08PM

we will then specify our expectations about your contributions, but essentially it is to describe what you know about the technologies being prepared for effective coordination of production within an ecosystem

As I mentioned, the apps we are specifying will cover more than coordination of production, but I am happy to focus on that aspect for your paper.

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