Examples of Past looking value equation
This page presents examples of Past looking value equations implemented by different OVNs.
- Past looking applies to economic processes (ventures) that originate within the OVN, for which the deliverable is not clearly defined, that consume resources to create exchange value (market value) to be later exchanged on the market (as a product or service) for revenue. The % of total revenue for every contributor is calculated based on past contributions. The revenue is unknown at the beginning or during the process. Past looking value accounting schemes can be fluid equity-based or debt-based.
For products provided by the OVN
Product development is a very long and resource intensive endeavor. Since the level of commitment needed from affiliates is higher, some SENSORICA affiliates advocate an equity-based value accounting. In other words, contributions are evaluated and transferred into fluid equity. All the contributors have some fluid equity in the open venture (the project), which is a claim on revenue for the entire life of the product, whether they remain active affiliates of SENSORICA or move on to other activities not related with the network.
For services provided by an OVN
Unlike the development of products, services are easier and less resource intensive to establish than products. Since the level of commitment needed from affiliates is lower, compared to product development projects some SENSORICA affiliates advocate a debt-based value accounting. In other words, contributions for setting up the venture are evaluated and transferred into debt, that will be paid back from future exchanges (sales). The rationale here is to avoid long-term rent extraction from the service-based venture.