contribution market system

![[contribution market system svg\]] The Contribution Market System revolutionizes how communities balance work and value. Imagine a system where your efforts - whether innovating internally or bringing in external resources - are fairly rewarded based on what the community genuinely needs. If you streamline a process that saves everyone time, you keep 20% of those savings. If you solve a major community challenge, you earn a bounty. If you prefer external work, your contributions adjust in value based on real community needs. The system naturally balances itself - when too many people choose one path, incentives automatically shift to maintain healthy participation. The beauty is its flexibility: you can contribute through direct labor, external income, or innovation, and the market dynamically values each based on current community needs. It's a system that rewards both individual initiative and community benefit, without creating permanent inequalities. #### Contribution Market System Overview labor rate ($/hr) = total community labor needed / total funding needed ##### Individuals Contribute With Mix of - Innovation Dividends: 20% of verified task time reductions - Qualified labor: hours spent within systems doing tasks at or below their skill level - Problem Bounties: Rewards for solving defined community challenges - External Income ##### Annual Planning - set hourly contribution expectation e.g. 20 hours - Community audits previous year's usage of resources and production results - systems propose annual resource needs, buffers on these numbers (creating slush hrs/$ fund for system to easily utilize), production goals - Sets external income floor rate e.g. the boundaries labor/funding rate the market can adjust to 10 - 100 $/hour ##### Quarterly - System contributors specify labor/funding needs - Members allocate preferred contributions (mix of hrs/system, $) - Members are allowed to contribute more than obligatory hrs and will be paid the labor rate - labor/funding gap revealed and the market applies premiums to any unfilled needs - this premium applies to both the hours needed to contribute to meet contribution and the labor rate received if surpassing contribution. - example: bakery needs labor and - if there is a system wide funding gap, the value labor rate lows so the value of external contributions is worth more hours - members vote and rates are adjusted until all needs are met ##### Market Forces - individuals will follow their incentives to work less, earn more money, and follow their passions - areas of low labor supply will drive innovation and automation due to market incentives, innovation structure, and the non-enjoyability of the work - labor will be most valued in systems most in need of that labor | Labor/Money Need | High Money Need | Low Money Need | | ------------------- | ----------------------------------------------------------------------------- | ------------------------------------------------------- | | **High Labor Need** | **AUSTERITY** Reduce system outputs Find efficiencies | **SELF-SUFFICIENCY** low $/hr | | **Low Labor Need** | **EXTERNAL FOCUS** Members shift to external work Bring in needed funds | **ABUNDANCE** Flexible choices Community thriving | ##### Key Questions: - How prevent labor credit inflation from innovation rewards? - Should accumulated hours - expire to maintain active participation? - be inheritable? - allow lending (w/ w/out interest)? ### Example ### Initial Conditions - 700 total contributors - Base commitment: 20 hrs/week/person (260 hrs/quarter) - Total quarterly labor pool: 182,000 hours | System | Labor Hours | Funding Needed | | ---------------- | ----------- | -------------- | | Forest Garden | 3000 | $95k | | Orchards | 1400 | $55k | | Fish Farm | 800 | $35k | | Mono Crops | 1200 | $50k | | Bakery | 2000 | $45k | | Food Processing | 4000 | $85k | | Medical Facility | 1200 | $215k | | Dental Care | 400 | $58k | | Pool Complex | 300 | $65k | | Ice Rink | 200 | $12k | | Water | 1400 | $55k | | Transportation | 2000 | $180k | | Tech Support | 1800 | $125k | | building | 4000 | $320k | | Early Learning | 3000 | $55k | | Elementary | 4000 | $85k | | Secondary | 2000 | $70k | | Elder Care | 4000 | $150k | | total | 36,700 | $1,755,000 | labor rate = 1755000/36700 = $/48hour Total Annual: - Labor Hours: ~690,000 | System | Labor Need | Funding Need | Initial Surplus Labor Rate | | ---------------- | ---------- | ------------ | -------------------------- | | Medical Facility | 20,000 hrs | $200,000 | $25/hr | | Food Production | 40,000 hrs | $150,000 | $18/hr | | Bakery | 10,000 hrs | $50,000 | $20/hr | | Total Needs | 70,000 hrs | $400,000 | - | Initial Exchange Rate: $400,000/70,000 hrs = ~$5.70/hr base rate ### First Preference Round Results | System | Labor Pledged | Funding Pledged | Gap | |------------------|---------------|-----------------|------------------| | Medical Facility | 15,000 hrs | $150,000 | -5,000 hrs, -$50k| | Food Production | 45,000 hrs | $100,000 | +5,000 hrs, -$50k| | Bakery | 5,000 hrs | $30,000 | -5,000 hrs, -$20k| | Total | 65,000 hrs | $280,000 | -5,000 hrs, -$120k| ### Rate Adjustments | System | Labor Gap % | New Labor Multiplier | New Surplus Rate | | ---------------- | ----------- | -------------------- | ---------------- | | Medical Facility | -25% | 1.75x | $43.75/hr | | Food Production | +12.5% | 1.0x (surplus) | $18/hr | | Bakery | -50% | 2.0x | $40/hr | New Base Exchange Rate: ($400,000-$280,000)/(70,000 hrs) = ~$7.15/hr ### Second Round Results | System | Labor Pledged | Funding Pledged | Remaining Gap | |------------------|---------------|-----------------|------------------| | Medical Facility | 18,000 hrs | $175,000 | -2,000 hrs, -$25k| | Food Production | 42,000 hrs | $125,000 | +2,000 hrs, -$25k| | Bakery | 8,000 hrs | $40,000 | -2,000 hrs, -$10k| | Total | 68,000 hrs | $340,000 | -2,000 hrs, -$60k| Would you like me to continue with more rounds or explore how individual contributors might adjust their positions based on these changing values? | Vote Phase | | Bakery Need: 800 hrs | Medical Need: 2000 hrs | Food Production Need: 3000 hrs | | --------------- | ------------------------------------------------------------------- | --------------------------------------- | -------------------------------------- | ---------------------------------------- | | **First Vote** | $300k committed (-$200k gap) | 1200 hrs pledged (+400 surplus) | 1000 hrs pledged (-1000 deficit) | 2000 hrs pledged (-1000 deficit) | | **Adjustments** | Base: $20/hr → $26/hr (40% funding gap) | No premium (over-subscribed) | 2x premium (50% gap) | 1.5x premium (33% gap) | | **Second Vote** | contributors can adjust financial contributions based on incentives | Members shift away due to no premium | Members attracted by 2x hours value | Members attracted by 1.5x hours value |