Open Value Networks

Open Value Networks (OVNs) are decentralized, collaborative organizational models designed to support commons-based peer production (CBPP). They enable individuals and organizations to co-create value in an open, transparent environment while fairly distributing benefits according to contributions. Unlike traditional corporations, OVNs are not defined by formal legal incorporation but emerge from collective activity and shared purpose.

Definition and Core Principles

The model originated from the practices of Sensorica, an open-source hardware community founded in Montreal in 2011, and was influenced by earlier concepts like Verna Allee’s value networks. OVNs operate as self-organizing, emergent systems without predefined hierarchies, evolving through collaboration and mutual agreement. They share philosophical underpinnings with stewardship models that emphasize caretaker mindsets for responsible resource management.

Key Characteristics

OVNs are built on three foundational principles:

• Open Membership: Anyone can join or leave without formal barriers, enabling permissionless participation
• Transparency: All processes, contributions, and decision-making are visible to participants, fostering trust and accountability
• Variety of Contributions: Participants contribute diverse inputs—time, skills, tools, knowledge, financial resources—which are all accounted for

This openness allows small, distributed groups to collaborate effectively, bypass traditional intermediaries, and compete with larger, capital-intensive firms by pooling resources and knowledge. The approach aligns with bioregional principles of organizing by natural boundaries and ecological constraints.

Governance and Structure

OVNs function across multiple levels: project, open-enterprise, network, and global. Each level operates with decentralized governance:

Multi-Level Organization

• Project Level: Teams self-organize around specific goals using collaborative tools
• Open-Enterprise Level: Coordinates multiple projects, managing shared resources and strategy
• Network Level: Governs common assets and protocols, such as the Network Resource Planning (NRP) and Contribution Accounting System (CAS)
• Global Level: Addresses inter-network collaboration and long-term sustainability

Decision-Making

Decision-making is distributed, often using consensus or reputation-based voting systems, ensuring no single entity controls the network. This approach aligns with cosmo-localist principles of combining global knowledge with local implementation.

Economic Model and Value Distribution

The OVN model introduces a contribution accounting system that tracks both quantitative and qualitative inputs. This system uses a value equation—a democratic, customizable algorithm—to determine how revenue is distributed among contributors.

Beyond Gift Economies

Benefits are returned in proportion to contribution, moving beyond gift economies like Wikipedia by enabling tangible rewards without relying on traditional employment or equity structures. This allows participants to engage with minimal financial investment, reducing barriers to innovation.

Revenue Generation

OVNs can generate income through product sales, services, or licensing, with profits shared transparently via a common ledger. This approach provides a practical implementation of Valueflows principles for resource accounting and distribution and relates to REA accounting concepts for economic resource modeling.

Examples and Real-World Applications

Pioneering Implementations

• Sensorica: The pioneering OVN, founded in Montreal in 2011, focused on open-source scientific instrumentation and the development of the OVN framework itself. With over 3,000 logged contributions, Sensorica represents one of the most mature implementations of OVN principles.
• Bitcoin and Ethereum: Cited as proto-OVNs due to their open, permissionless participation and value creation through mining and development. These cryptocurrency systems demonstrate distributed value creation mechanisms that OVNs can build upon.
• ValNet: An open-source platform being developed to implement OVN accounting and governance digitally

Application Domains

These examples demonstrate how OVNs can operate in technology, manufacturing, and digital infrastructure, with potential applications in education, healthcare, and sustainability. The model shows particular promise for fourth sector enterprises that blend social mission with market-based approaches, and aligns with principles of circular bioregional economics.

Comparison with Other Models

OVNs differ from traditional firms, cooperatives, and DAOs in fundamental ways:

Feature	OVN	Traditional Firm	Cooperative	DAO
Membership	Open, permissionless	Restricted	Member-owned	Token-based
Governance	Distributed, emergent	Hierarchical	Democratic	Smart contract-based
Value Capture	Shared via contribution accounting	Captured by shareholders	Shared among members	Distributed via tokens
Legal Status	De facto association	Incorporated	Incorporated	Often unincorporated

Unique Advantages

OVNs uniquely combine the flexibility of open collaboration with robust mechanisms for value recognition and distribution. They represent a practical bridge between informal peer production and sustainable economic organization.

Technical Infrastructure

Digital Support Systems

OVNs leverage digital platforms for coordination and accounting:

• Network Resource Planning (NRP): Manages shared resources and project coordination
• Contribution Accounting System (CAS): Tracks and values diverse contributions
• Common Ledger: Provides transparent financial management
• Collaborative Tools: Enable distributed teamwork and decision-making

Integration with Decentralized Technologies

Many OVNs incorporate agent-centric architectures and peer-to-peer technologies to support their distributed governance models. This creates natural alignment with network state concepts of digital-native organization.

Relationship to Other Concepts

Connected Models

• Commons-Based Peer Production: The theoretical foundation for OVN collaboration
• Open Source Ecosystems: Software communities that pioneered many OVN principles
• Platform Cooperativism: Worker-owned platform alternatives to gig economy
• Decentralized Autonomous Organizations (DAOs): Blockchain-based governance experiments, many built on Ethereum and similar platforms
• Local-first accountability: Community-focused responsibility systems that complement OVN transparency principles
• Cognicism: AI-augmented framework for collective belief tracking and decision-making that could enhance OVN governance systems

Theoretical Context

OVNs represent a practical step toward a post-capitalist, peer-driven economy—scalable, ethical, and adaptive to complex global challenges. They offer a concrete implementation of many principles discussed in alternative economic and governance literature, particularly in relation to Holochain’s agent-centric architecture and other distributed systems.

Implementation Considerations

Key Success Factors

• Clear Contribution Metrics: Transparent systems for tracking and valuing diverse inputs
• Effective Governance: Decision-making processes that balance efficiency with inclusivity
• Sustainable Economics: Revenue models that support ongoing operations without compromising values
• Cultural Alignment: Shared understanding of collaboration principles and value distribution

Common Challenges

• Coordination Complexity: Managing distributed teams without traditional hierarchy
• Value Assessment: Determining fair compensation for diverse contribution types
• Scale Management: Maintaining effective collaboration as networks grow
• Legal Integration: Navigating existing legal frameworks designed for traditional organizations

Resources for Learning More

The OVN Wiki serves as the primary knowledge repository, documenting real-world implementations and evolving theory. Additional resources include:

• Academic papers on commons-based peer production
• Talks by Tiberius Brastaviceanu (Sensorica founder)
• Initiatives by the P2P Foundation
• Case studies of successful OVN implementations
• Technical documentation for OVN support platforms

Future Directions

As digital collaboration tools and decentralized technologies continue to evolve, OVNs are positioned to become increasingly viable alternatives to traditional organizational forms. They offer a pathway toward more equitable, sustainable, and collaborative economic systems that can address complex global challenges while providing meaningful livelihoods for participants.

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This document represents a synthesis of current OVN theory and practice, drawing from multiple sources and real-world implementations.