Open Source Social Capital
Open Source Social Capital (OSSC) is a form of capital constituted by the combination of open source knowhow, open source hardware tools, and software that is used in conjunction with collaborative development processes and crowd funding to provide startup capital that is until present (2021) typically provided by Financial Capital. OSSC is a form of capital based on a socializing process, rather than a typically alienating process - that comes out of the collaborative techniques used. Truly open collaboration is invoked between agents from many different organizations - motivated primarily by the efficiency that arises from eliminating all forms of Competitive Waste.
The concept of open source social capital is created here to mark a distinction between the institution of money and OSSC. Enterprise does not need money - it needs the things that money can buy. OSSC proceeds to collect those necessary resources directly, with less dependence on official money systems, which carry with them certain prejudices as to the principles of how business is done. By avoiding dependence on official money systems, OSSC can create new rules of how economics can be run. Financial capital relies on using money as an adhesion contract, and OSSC aims to change the rules of the game by setting new principles that don't rely on modern monetary theory that includes Fractinal Reserve Banking, Limited Liability, the standard corporation as a legal form (see The Corporation), Initial Public Offering, and other legal fictions which until this point in human history (2021) tend to concentrate power in some people at the expense of others. We envision a world of abundance where inequality exists but is more fluid: where social mobility allows any individual free choice as to how much authentic, ethical power they gain - and protects those seeking authentic power from those who gained their power unethically.
How It Works
As of end of 2020, the general formula that OSE headquarters is testing is:
- Pre-sell a product of large economic significance. This is similar to Revenue Financing, but without a third party.
- Involve customers and outsiders in a large, collaborative development event to produce valuable information and prototypes - while raising revenue through an experience economy model. This part provides a large amount of value towards an associated information product, while supporting a dedicated prototyping effort as a part. This is the Extreme Enterprise event.
- Involve a collaborative incentive challenge to assist in product delivery. Thie intent is a highly efficient way to generate workable design.
- Train the producers: entrepreneurs and technicians to produce the product of interest, such that product delivery can be achieved at lower cost than relying on a limited quantity of existing specialists.
- Fulfill orders, enlisting the newly trained producers as well as enlisting upskillable, existing professionals to fulfill orders
- Involve open source knowhow, open source machines development, and open source software development to fulfill the goals and to increase participation
- Train people for both DIY and enterprise-based production - so that the product is accessible to both prosumers and consumers - thereby enlarging the potential market while lowering product cost.
OSE Case - 2021
In 2021, OSE is experimenting with Extreme Enterprise as a practical route of open source social capital that can fund startup enterprise at levels comparable to those provided by venture capital or other Financial Capital institutions. The essential distinction with respect to funding is that OSSC is lean and efficient, while the capital efficiency of other sources is lower. Further, standard financial capital mechanisms are not designed for Distributed Market Substitution, so they are not a good fit for OSE. We are testing the Extreme Enterprise model with the Seed Eco-Home v2.