Every formula published anywhere in this project is defined once, here. Specification chapters, formula cards, and interactive calculators all read from this registry, so a figure on the site and a figure in the specification cannot drift apart.
NVC
Net Value Created
ResearchRecords what a transaction produced, net of what it consumed and what it imposed on others.
NVC = VP - VC + E - R
net value created = value produced − verified costs + positive externalities − risks
Variables
VP — Value produced (currency)VC — Verified costs (currency)E — Positive externalities (currency)R — Risks and negative externalities (currency)
Assumptions
- Value produced, externalities, and risks are estimated rather than observed.
- Estimates are comparable only when produced by the same disclosed method.
- Components are additive; interaction effects are not modelled.
Limitations
- Externality estimates are the weakest input and dominate disagreement.
- No independent verification exists at alpha stage.
Example — A $500 purchase producing $6,000 of buyer value against $300 of cost and $200 of risk gives NVC = $5,500.
TVR
Total Value Received
ResearchSums the value each party to a transaction actually received.
TVR_{recv} = V_{buyer} + V_{seller}total value received = buyer value + seller value
Variables
V_buyer — Value received by the buyer (currency)V_seller — Value received by the seller (currency)
Assumptions
- Both parties report on the same disclosed method and time horizon.
Limitations
- Self-reported at alpha stage; no third-party verification.
Example — $6,000 buyer value plus $1,500 seller value gives $7,500 received.
SURPLUS
Value Surplus
ResearchShows how much value a transaction produced beyond the amount exchanged.
S = TVR_{recv} - Psurplus = total value received − price
Variables
TVR_recv — Total value received (currency)P — Transaction price (currency)
Assumptions
- Price is the complete settlement amount, including fees.
Limitations
- A large surplus may reflect an optimistic value estimate rather than a good transaction.
Example — $7,500 received on a $500 price gives a $7,000 surplus.
EFF
Value Efficiency
ResearchExpresses value received per unit of price so transactions of different sizes can be compared.
\eta = \frac{TVR_{recv}}{P}value efficiency = total value received ÷ price
Variables
TVR_recv — Total value received (currency)P — Transaction price (currency)
Assumptions
- Price is greater than zero.
- Value horizon is stated and identical across compared transactions.
Limitations
- Highly sensitive to the hourly rate used to value time saved.
Example — $7,500 received on a $500 price gives η = 15.
IVS
Intelligent Value Score
ResearchMaps value efficiency onto a bounded comparative scale for transactions and projects.
IVS = \frac{100}{1 + e^{-k(\eta - \eta_0)}}a bounded 0–100 indicator derived from value efficiency
Variables
\eta — Value efficiency (ratio)\eta_0 — Reference efficiency (ratio)k — Curve steepness (dimensionless)
Assumptions
- Reference efficiency and steepness are published and versioned.
Limitations
- Must never be applied to a person, used as a credit gate, or used to determine rights.
- Bounded output can imply more precision than the inputs support.
Example — With η = 15, η₀ = 5 and k = 0.2, IVS ≈ 88.
PPI
Purchasing-Power Index
ResearchDefines stability as the purchasing power of a published basket rather than an exchange rate.
PPI_t = \frac{\sum_i w_i p_{i,t}}{\sum_i w_i p_{i,0}}weighted basket price now ÷ weighted basket price in the base period
Variables
w_i — Published weight of basket item i (dimensionless)p_{i,t} — Price of item i at period t (currency)p_{i,0} — Price of item i in the base period (currency)
Assumptions
- Basket composition, weights, and sources are published before use and versioned on change.
Limitations
- A basket that can be quietly reweighted is a mechanism for hiding inflation.
Example — A basket costing 104 against a base of 100 gives PPI = 1.04.
CAPREC
Capital Recycling
DraftModels how returned project capital funds subsequent institutional deployment.
C_{n+1} = C_n \times r \times snext-cycle capital = deployed capital × institutional return share × success rate
Variables
C_n — Capital deployed in cycle n (currency)r — Institutional return share (ratio)s — Success rate of funded projects (ratio)
Assumptions
- Project profit is measurable and agreements are enforceable.
- Success rates are stable across cycles.
Limitations
- Extremely sensitive to the success rate; small errors compound.
- Institutional overhead, fraud, and selection bias are unmodelled.
- Outputs are illustrative, never predictions.
Example — $100M deployed at r = 0.9 and s = 0.4 returns $36M for the next cycle.
RC
Reserve Coverage
ResearchStates whether a proposed unit of account can meet redemption under a published stress scenario.
RC = \frac{\text{Liquid reserves}}{\text{Redeemable liabilities under stress}}reserve coverage = liquid reserves ÷ redeemable liabilities under stress
Variables
Reserves — Liquid reserve assets (currency)Liabilities — Redeemable liabilities under the stress scenario (currency)
Assumptions
- Stress scenario, asset liquidity classifications, and redemption terms are published.
Limitations
- Correlated stress across reserve assets is not captured by a single ratio.
Example — $1.20 of liquid reserves per $1.00 of stressed liabilities gives RC = 1.2.
PROSP
Prosperity Function
ResearchCandidate formulation of system-wide prosperity beyond nominal output.
P = \sum_i w_i \cdot \frac{c_i}{c_i^{*}}prosperity = weighted sum of measured capability against reference levels
Variables
c_i — Measured capability in domain i (domain-specific)c_i^* — Published reference level for domain i (domain-specific)w_i — Published weight for domain i (dimensionless)
Assumptions
- Capability domains are separable.
- Weights are set by a disclosed, versioned procedure.
Limitations
- The weighting procedure is unresolved and is the framework's largest open problem.
- Distributional effects are not captured by the aggregate.
Example — Illustrative only; no validated weights exist at alpha stage.
DP
Distributable Profit
ResearchEstablishes what a Universal Beneficial Income system may distribute in a period, after every prior obligation is funded.
DP_t = \max(0,\; R_t - O_t - B_t - C_t - S_t)
distributable profit = qualifying revenue − operating cost − essential benefits − reinvestment − reserve funding
Variables
R_t — Qualifying system revenue in period t (currency)O_t — Verified operating cost (currency)B_t — Essential-benefit budget (food, housing, utilities) (currency)C_t — Required capital reinvestment (currency)S_t — Required reserve and stabilization funding (currency)
Assumptions
- Revenue is audited and attributable to the distributing system.
- Essential benefits are funded before any cash distribution.
- Distribution is never funded by borrowing.
Limitations
- Revenue at the scale the framework assumes has never been demonstrated.
- Cost categories overlap in practice and require an accounting standard that does not yet exist.
Example — Revenue of $1.8T against $300B operating, $420B benefits, $260B reinvestment, and $120B reserves gives DP = $700B.
DIV
Citizen Dividend
ResearchDivides the approved portion of distributable profit equally across every eligible citizen for the period.
D_t = \alpha \cdot \frac{DP_t}{N_t}citizen dividend = approved distribution share × distributable profit ÷ eligible citizens
Variables
D_t — Annual distribution per eligible citizen (currency)\alpha — Approved citizen-distribution percentage (0–1)DP_t — Distributable profit in period t (currency)N_t — Eligible citizens in period t (count)
Assumptions
- Every eligible citizen receives an identical amount.
- α is set publicly in advance and cannot be changed retroactively.
- The remaining (1 − α) is retained as productive capital.
Limitations
- An equal split ignores regional cost-of-living differences.
- The dividend varies with system performance and cannot be guaranteed as a fixed amount.
Example — α = 0.75 applied to $700B across 340M citizens gives about $1,544 per citizen per year.
PSR
Prosperity Stabilization Ratio
ResearchDetermines whether a distribution may be released at full rate, reduced, or suspended in favour of essential benefits.
PSR = \frac{\text{Liquid Reserves}}{\text{Projected 12-Month Core Obligations}}reserve ratio = liquid reserves ÷ the next twelve months of core obligations
Variables
PSR — Coverage of core obligations by liquid reserves (ratio)Liquid Reserves — Reserves callable within the period (currency)Core Obligations — Food, housing, utilities, account operations, and committed payments (currency)
Assumptions
- Core obligations can be projected twelve months ahead with acceptable error.
- Reserves are genuinely liquid and unencumbered.
Limitations
- A shock that moves revenue and obligations together degrades the ratio faster than it predicts.
- Threshold bands are conventions, not derived values.
Example — Reserves of $700B against $560B of projected core obligations gives PSR = 1.25 — adequate.