I’m swamped at the moment and so point to come conversations at omidyar.net that are relevant here:

• Facilitating Flow
• More than Software: Social Contracts, Operations and Governance
  

The idea is that incentive systems encourage flows of time, talent and treasure, depending on how they’re designed.  Incentive systems depending large degree on how we count up the points, be they dollars, frequent flyer points, college degrees, karate belts, etc.  Some points are tradeable, others not.  All have their own rules.  We can create whatever rules we want when creating a new point system.  It’s a good idea to think about the kinds of flows we want to encourage and how to create them.  Does a volunteer recognition breakfast encourage more volunteering?  If so, then it’s an effective incentive to encourage the flow we want.

• Do you want more choices about what you can do for a living?
• Do you want to feel part of a local community?
• Do you own a local business & want more customers?

Very cool stuff. Arthur and Gerry have been talking a lot about reputation currencies and lots of other types of systems to encourage flows, some that look like money and others that do not. Lots more to come in this area, as it develops.

Thanks, Doug!

I’m not sure if he’s serious or joking, but there are alternative currency systems where the money expires. This ensures flow, which is what’s necessary for a currency to be an effective value exchange mechanism. This makes saving for a rainy day a bit difficult, so sometimes people design in a value storage currency as well. Good stuff, Doug. Thanks!