Asymmetric Accounting
Description
"I want to introduce the term "asymmetric accounting" to describe systems that record and track the provision of value rather than the volume of money transacted. Asymmetric accounting mechanisms are congruous with the reality that freely given advice or knowledge can be just as valuable as purchased knowledge. Such systems would not require a market price in order to recognize value creation and provision. In taking this broader view, asymmetric accounting reconciles our economic notions with the reality that value exists independent of whether its recipient is obligated or able to provide equal compensation." (http://onthespiral.com/my-story-about-the-future-of-money-asymmetric)
Discussion
"How would this accounting be accomplished? The challenge is to devise non-invasive mechanisms of value recognition. "Non-invasive" implies that these mechanisms should not create the expectation of reciprocation. Consider for example - How do you react when someone approaches you with a "free" offer at the entrance of a store or on a crowded commercial street? If you are anything like me, you quickly avoid these overtures altogether. You realize that the offer is not really free, that there is an implied expectation. Even if the initial token is free, the goal is to create an implicit obligation.
When money is our only accounting system and transactions are the only ubiquitous means of reciprocation, we are condemned to this state of affairs. We avoid generosity in order to avoid the obligation to reciprocate. Internet social platforms create new possibilities. Anyone can hit a Like button, or subscribe to a blog, or amplify a message. These actions record the recognition of value without requiring any exchange of scarce currency. Over time, accumulated statistics begin to delineate who has provided value in the past and who is likely to provide value in the future. These first experiments with social media will develop eventually into comprehensive tools that record the creation and provision of value in many forms.
These tools will reframe our notions of for-profit and non-profit, enabling more subtle distinctions that better describe new business models. The coarse distinction between for-profit and non-profit is only necessary when our notions of value preclude non-monetary value. "For-profit" becomes a misnomer when many businesses dedicate funds to charitable ventures while many others simply fail to generate monetary returns. Ultimately what we mean by "for-profit" is: Seeking symmetric exchange. Seeking to be compensated to a degree commensurate with the value of the products or services delivered and the costs of their production. When the monetary system assumes that all exchange is transactional and symmetric, then a new category, "non-profit", is required for ventures that don't fit this description. But, these distinctions are not as clear as legal distinctions would lead us to believe. Some ventures truly seek symmetric compensation while other ventures, to varying degrees, disproportionately benefit some stakeholders over others: Google is a for-profit corporation funded by investment and ongoing revenue, yet stills outputs far more value to users than it will ever gain in revenue (monetary input) Government institutions are non-profit yet, in many cases, deliver far less value in output than is allocated to them as monetary input Volunteer organizations generally consume very little monetary input and yet often create significant value as output Current accounting methods treat $1 million of Google employee salary as equal to $1 million of public employee salary, irrespective of the value produced by these disparate endeavors. Furthermore, volunteer organizations, to the extent that they avoid monetary transactions, are accounted for as if they provides no economic value at all.
Asymmetric mechanisms will remedy these anomalies, providing a more subtle and granular interpretation of value. As they become more comprehensive, our economic notions will become more consistent with reality and our markets, broadly conceived, will better encourage value creation in all its disparate forms." (http://onthespiral.com/my-story-about-the-future-of-money-asymmetric)