The Donut Economy x 8 Forms of Capital

Abstract

In this post, I talk a bit about the world I want to see created by regen web3, using two frameworks which I discovered during research into GREENPILLED - how crypto can regenerative the world.

  1. DONUT Economy by Kate Raworth
  2. 8 forms of capital by Gregory Landua of Regen Netework

This post has absolutely nothing to do with tangible day to day Gitcoin governance, and everthing to do with theory. If Gitcoin is a generator function of innovation, this post is a taxonomy of what I think the DAO could point its innovation machine at.

Think of this post of it as mental floss, as a sequel to Pluralistic Civilizational Scale Infrastructure for Public Goods post I wrote a few months ago.

The Donut Economy x 8 Forms of Capital

The donut economy framework, developed by Kate Raworth, is a way of understanding sustainable development visually.

It combines the concept of planetary boundaries (the outer layer) with the concept of social boundaries (the inner layer).

In between the planetary boundaries & the social boundaries, there is a safe space for humanity - to consume “just enough” resources to meet social goals without crossing the planetary boundaries.

If we overshoot the planetary boundaries, we end up with problems with climate change, land conservation, air pollution, chemical pollution, ozone depletion, etc (the outer layer).

If we undershoot these boundaries, we end up with shortages in resources needed.

I’d like to invite Gitcoiners to checkout the Donut Economy - a very useful framework for understanding what a world that respects the public good on the material vector looks like.

My main takeaway from the donut economy is that markets for private good represent a pushing from the center outwards, and that supporters of the public goods exert a force from the outside inwards.

With just the right balance, humanity would live between the social foundation & the ceiling in a regenerative & distributive economy. :seedling:

The Donut Economy x 8 Forms of Capital

Upon further considering these ideas, and upon envisioning the world I think is the most solarpunk, I’d suggest an extension to the DONUT economy based on the 8 forms of capital by Gregory Landua - aimed at defining the boundaries across many types of capital.

After doing research for the Green Pill book, and talking to some very smart people, I believe that there is an opportunity to expand the idea of planetary boundaries (which is just focused on the material layer of the capital stack) to boundaries on all of the layers of types of capital.

One idea that came from Daniel Schmatenberger, was the idea that all of the existential threats to humanity were intertwined, such that any attempt to solve one of them would be naut without an attempt to solve the causes of them. This is what Daniel calls the third attractor.

This all leads me to search for a visual comprehension of exactly what we’re talking about. What would a 3 dimensional donut that creates a safe space for humanity on all 8 forms of capital look like?

I think it’d look like something like this.

On each of these vectors, I try to outline what happens if humanity fails to coordinate away from overconsumption, externalization of harm, if it does not plan for the public good.

NOTE - Not all types of capital form similar types of boundaries and not all are from overconsumption. Some, like spiritual capital or intellectual capital, cannot be overconsumed but more often suffer from an inverse problem of neglect & underinvestment (or sometimes, capture by private interests).

I am not certain that this is the best way to visualize the planetary “boundaries” of the 8 forms of capital. Not all types of capital form similar types of boundaries and not all are from overconsumption. Some, like spiritual capital, cannot be overconsumed but more often suffer from an inverse problem of neglect & underinvestment (or sometimes, capture by private interests).

Still, I find the combination of these two ideas to be fun mental floss. I find the taxonomy useful as we map out various ImpactDAOs in the space. There are web3 projects that are working to tokenize resources in all of these layers, which - in theory - if these projects do not externalize harm and if public goods are well supported in this world - could* allow decentralized cryptoeconomic markets to create the balance between the social needs at the center of the donut and the outer boundaries of different layers of capital.

The donut economy is a visualization of markets for private & public goods interplay. Private goods represent a pushing from the center outwards, and that supporters of the public goods exert a force from the outside inwards. With just the right balance across all 8 vectors, humanity would live between the social foundation & the ceiling in a regenerative & distributive economy.

First do not harm. I am also of the opinion that markets, if not set up properly, could not properly govern these resources, and would like to dedicate further resources to investigating which ImpactDAO’s impacts are truly positive sum. if the ecosystem can avoid negative or misaligned forms of coordination, then it should.

Feedback welcome.

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I really like this.
You could see the original donut as just opposite sides of two types of capital: Social and Natural.
Social Capital could have outer boundaries like bad vibes, and Natural Capital could have inner boundaries like biodiversity.
So perhaps each Capital donut has its own inner and outer boundaries.

btw, R3.0 has a great paper on multi-capitalism.

I love this. Wanted to share this Global Unity version of Doughnut Economics: It’s based on the Māori version, which places The Earth’s needs in the middle and human needs on the outside - the concept is a live feed of the Earth’s health on the inside, and outside, 7 billion people’s needs across all of Maslow’s hierarchy. All of this as the concept of the body of Homo Gaia (humanity and the earth as one), with heart being culture, community, and purpose, mind being education, sense-making, and governance. It’s meant to be the foundation of one of the Global Unity platforms, a purpose-based metaverse where we all play to regenerate the earth and work towards the maximal health, happiness, and fulfillment of everyone, everywhere.

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Also, Vincent Arena of Catalist has created this “periodic table of impact” which addresses some of the limitations of the SDGs. A great potential framework for making impact cartography easier to engage.

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Seems like a torus with differing radii. Or stellar orbits I’m thinking of. Too small an orbit and we crash into the planet/star/black hole. Too large and we fly off into deep space.

I love the :doughnut: donut :doughnut: mental model.

I’m reading stories of your life and others by Ted Chiang rn and the first short story has miners going up a gigantic megastructure Tower of Babylon (story) - Wikipedia and there was this line about how they afraid of going both in too deep or up too high.

That teamed w the donut model makes me feel like there is social pressure vs economic gravity going to far in vs too far out on the donut.

I love a just-right-bite as a mental analogy for a steady state equilibrium too lol

FYI i gave a talk about this exact subject at ETHAustin => 1-Gitcoin: Ethers Phoenix - YouTube

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