Capital Recycling

Problem

Institutional capital deployed once produces one round of outcomes. Capital that returns to the institution after a successful project can produce many.

Mechanism

A voluntary institution provides capital and non-capital resources to a project. If the project succeeds, an agreed share of project profit returns to the institution, which redeploys it as the next round of grants, contracts, and research.

Model

$$C_{n+1} = C_n \times r \times s$$

where $C_n$ is capital deployed in cycle $n$, $r$ is the institutional return share, and $s$ is the success rate of funded projects. The interactive form is the Capital Recycling Simulator; the formula record is CAPREC in the formula registry.

Assumptions and limits

• Assumes measurable project profit and enforceable agreements
• Assumes success rates estimated from too little data at alpha stage
• Does not model institutional overhead, fraud, or selection bias
• Compounding results are illustrative, never predictions

See The Voluntary 90/10 Model for the specific split. Public explanation: the homepage.

ISILP. Capital Recycling. The Intelligentism Specification, version 0.1.0-alpha (revised 2026-08-01). https://intelligentism.isilp.org/spec/economics/capital-recycling