Written for Allo.Capital. You can find the original research blog post at research.allo.capital.
Gratitude to Kevin Owocki, Gregory Landua, and Exeunt for their early feedback.
TLDR
Capitalism’s core failure is its reduction of all value to money, ignoring ecological, social, and communal forms of value—leading to systemic crises.
Pluralistic capital allocation using blockchain tools (like hypercerts, tokens, quadratic funding) can recognize and incentivize diverse contributions beyond profit.
Post-capitalist models such as regenerative finance, Exit to Community, and movement-accountable investing aim to embed wealth in communities and ecosystems.
The goal is not to abolish markets, but to evolve them—toward coordination systems that prioritize human and planetary flourishing over narrow financial returns.
Introduction
When Karl Marx wrote Das Kapital in the 19th century, he provided more than just a critique of industrial capitalism—he offered a theoretical framework for understanding how capital functions as a social relation that shapes production, exchange, and ultimately human possibility itself. Marx revealed how capitalism reduces diverse forms of value to a single metric: exchange value, expressed through money. Today, as digital networks transform our economic landscape, Marx's insights remain surprisingly relevant.
The narrow optimization of contemporary capitalism—its relentless focus on financial returns—has generated unprecedented wealth alongside profound inequality and ecological devastation. While critics have long identified these problems, until recently we lacked the tools to fundamentally reimagine our systems of valuation and exchange. Onchain capital allocation presents an opportunity for blockchain technologies and cryptoeconomic systems to offer something genuinely new: the possibility of economic infrastructure that can recognize, measure, and incentivize multiple forms of value simultaneously, beyond just financial returns. Blockchains provide a substrate capable of representing the complexity of a financial system designed for multi-capital optimization, but significant effort will be required to ensure those new systems outcompete legacy financial markets on their own terms (profit maximization) while simultaneously providing the scaffolding for regenerative markets.
This essay argues that by developing pluralistic capital allocation systems, we can transcend the limitations of narrow financial optimization while preserving the coordinative efficiency that markets provide. By expanding what we measure, value, and incentivize, we can build economic systems that optimize for human flourishing and ecological sustainability rather than extraction and accumulation.
The Contradictions and Inadequacies of Neoliberal and Neoclassical Economics
Marx's labor theory of value demonstrated how capitalism obscures the social relations underlying production, reducing diverse forms of concrete labor to abstract labor time. "The value of a commodity," he wrote, "represents human labor pure and simple, the expenditure of human labor in general." This abstraction process—reducing heterogeneous concrete labor to homogeneous abstract labor—parallels contemporary capitalism's reduction of multidimensional value to unidimensional financial metrics.
Neoliberal and neoclassical economic theories have not only failed to resolve this reductionism but have institutionalized it through academic, policy, and cultural frameworks. These dominant economic paradigms are systematically incapable of addressing our most pressing challenges for reasons embedded in their foundational assumptions:
Market fundamentalism. By elevating markets to near-theological status, neoliberalism assumes that price signals can efficiently allocate all resources if markets are sufficiently "free." Yet this ignores the inherent limitations of markets in valuing public goods, managing commons, and accounting for externalities. Climate change—what Nicholas Stern called "the greatest market failure the world has seen"—exemplifies how markets systematically undervalue shared resources and future generations.
Methodological individualism. By modeling economic behavior solely through individual utility maximization, neoclassical economics erases the fundamentally social nature of value creation. This methodological commitment renders invisible the communal practices, care networks, and social infrastructures that enable economic activity in the first place. The result is what political economist Karl Polanyi called the "disembedding" of economic relations from social relations.
Growth imperative. The structural requirement for continuous economic growth—measured through GDP—creates a system that must continuously expand or collapse. This imperative drives resource extraction beyond planetary boundaries while failing to distinguish between beneficial and harmful forms of economic activity. As ecological economist Herman Daly observed, we have moved from an "empty world" to a "full world" where further material growth often reduces rather than enhances wellbeing.
State capture. While neoliberals often position markets against state power, in practice neoliberalism has led to the capture of state institutions by market actors—what political scientist Sheldon Wolin termed "inverted totalitarianism." Attempts to regulate markets or protect commons through state action are systematically undermined by asymmetries of power and influence, leading to what economist Daron Acemoglu calls "extractive institutions."
These limitations create several irreconcilable contradictions in contemporary capitalism:
The metabolic rift. As environmental sociologist John Bellamy Foster has argued, drawing on Marx's concept of "metabolic interaction," capitalism disrupts the relationship between human society and the broader natural world. The relentless drive for profit leads to ecological extraction that outpaces regeneration, creating deficits that threaten the very foundation of economic activity. Climate change represents the most urgent manifestation of this contradiction.
The social reproduction crisis. Feminist economists like Silvia Federici and Nancy Folbre have shown how capitalism systematically undervalues reproductive labor—the work of caring, nurturing, and maintaining human life. This creates what Folbre calls "the invisible heart" of the economy, where the very labor that reproduces the workforce is devalued and often uncompensated. The resulting care deficit falls disproportionately on women and marginalized communities and the lack of valuation for reproductive labor can be causally connected to skyrocketing medical expenses, inadequate and institutionalized care practices, as well as hyper-individualization and social disconnection.
The knowledge commons enclosure. As scholars like Yochai Benkler and Elinor Ostrom have documented, our intellectual property regimes increasingly enclose knowledge that would be more productive as a commons. Information—non-rivalrous by nature—is artificially made scarce, limiting innovation and access particularly for disadvantaged communities.
The coordination failure. Our economic systems lack what cybernetics pioneer Stafford Beer called "requisite variety"—the capacity to address complex challenges that span multiple domains and require coordinated action across different temporal and spatial scales. Climate change, inequality, and social cohesion all represent coordination problems that markets alone cannot solve.
These contradictions emerge not from inadequate implementation of market principles but from the axiomatic foundations of capitalist valuation itself. The price mechanism, while effective at coordinating certain forms of economic activity, systematically fails to incorporate values that resist commodification or quantification through established metrics.
The neoclassical economic framework that dominates policy discussions compounds this problem. By defining value through revealed preferences in markets, it presents value as given rather than socially constructed. When economists invoke Friedrich Hayek's knowledge problem—the impossibility of centralizing dispersed information—they often ignore how market mechanisms themselves systematically devalue non-market forms of social and ecological reproduction.
What we need is neither unfettered markets nor hegemonic state control, but a new economic theory of value—a regenerative cryptoeconomic framework that leverages decentralized technologies to create pluralistic economic structures. Such structures would enable communities to define, measure, and exchange diverse forms of value without relying on either corrupted state power or extractive market mechanisms. By creating economic infrastructure that can recognize and incentivize contributions to social cohesion, ecological health, and human flourishing, we can build systems that generate and equitably distribute real value rather than extracting and concentrating financial wealth.
Cybernetic Political Economy: Networks, Feedback, and Value
The emergence of cybernetics—defined by Norbert Wiener as "the science of control and communication in the animal and the machine"—offers powerful tools for reimagining economic coordination. Cybernetic thinking emphasizes feedback loops, information flows, and emergent behavior within complex systems. Applied to economics, it suggests alternatives to both centralized planning and market fundamentalism.
Stafford Beer's Viable System Model demonstrated how organizations could achieve "requisite variety" through nested feedback loops and regulatory mechanisms that balance autonomy and control. Similarly, Elinor Ostrom's Nobel Prize-winning work on common pool resources showed how complex resource problems could be managed through polycentric governance—multiple, overlapping decision centers with appropriate rule systems for different types of goods and services.
These approaches suggest the possibility of "recursive value systems"—frameworks that can:
Recognize heterogeneous forms of value creation
Establish feedback mechanisms that detect externalities and adjust incentives accordingly
Enable nested governance structures appropriate to different types of goods and services
Incorporate plural value metrics while maintaining allocative efficiency
Blockchain technologies provide the computational infrastructure for implementing such systems through:
Cryptographic verification. Establishing trust in outcomes without requiring trust in specific institutions, enabling decentralized coordination across traditional boundaries.
Programmable incentives. Creating conditional rewards tied to verifiable outcomes, allowing for complex incentive structures beyond simple price signals.
State transitions. Recording changes in complex systems with cryptographic certainty, creating common knowledge about system states.
Composable protocols. Building interoperable systems that recognize different value metrics while enabling translation between them.
This infrastructure represents what sociologists Susan Leigh Star and Geoffrey Bowker might call "boundary infrastructure"—technical systems that enable coordination across domains with different values and practices. Rather than imposing a single metric of value, these systems allow for the coexistence and interoperation of multiple value frameworks.
Technical Foundations of Pluralistic Capital Allocation
The implementation of pluralistic value systems requires technical infrastructure that transcends the limitations of traditional financial instruments and accounting systems. Four key innovations merit specific exploration:
Tokenization: Pluralistic Units of Value
At its core, tokenization represents the conversion of value and ownership rights into discrete, programmable digital assets. While much attention has focused on tokenizing traditional financial assets like securities, the true revolutionary potential lies in tokenizing previously non-financialized forms of value.
Tokenization enables several crucial capabilities for pluralistic capital allocation:
Discrete representation of diverse forms of value. Any form of capital—natural, social, cultural, intellectual—can be represented as discrete digital units. This creates commensurability without requiring total homogenization. For example, a regenerative agriculture project might issue distinct tokens representing carbon sequestration, biodiversity enhancement, and water purification, each with its own measurement system and governance rules.
Fractional ownership and governance. By dividing rights into small units, tokenization enables broader participation in ownership and governance of assets previously accessible only to large institutional investors or the wealthy. A community forest could issue tokens representing stewardship rights that are accessible to local residents regardless of financial means.
Programmable rights and responsibilities. Smart contracts can encode specific rights, restrictions, and responsibilities associated with different types of value. For instance, a community housing token might include both ownership rights and commitments to maintaining affordability, automatically enforcing community agreements without requiring trust in centralized authorities.
Composability across value domains. Different tokens can interact through programmable interfaces, enabling complex systems that recognize and reward multiple forms of value creation simultaneously. A local currency might automatically provide rewards when combined with tokens representing volunteer hours or ecological restoration activities.
Traditional financial instruments qualify value primarily through price; tokenization enables qualification through multiple dimensions simultaneously.
For example, the tokenization of carbon removal creates units that represent not just tons of CO2 sequestered but be bundled with tokenized representations of co-benefits (like biodiversity) and community impacts. These attributes can be priced, traded, and governed distinctly rather than being flattened into a single metric.
Such markets can better recognize and reward the unique characteristics of different forms of value creation rather than reducing everything to interchangeable units.
Critically, tokenization opens a design space for economic systems that transcend the monistic unit of exchange value in traditional economies. Rather than creating a single digital currency to replace fiat money—replicating its reductionist approach—tokenization enables a pluralistic ecosystem of value representations that can interact while maintaining their distinctive qualities.
Hypercerts and the Representation of Heterogeneous Value
Hypercerts offer a formal framework for representing positive externalities—beneficial outcomes not captured by market prices— in the form of discrete non-fungible digital assets. Unlike traditional ESG (Environmental, Social, Governance) metrics that reduce impact to risk factors for financial returns, Hypercerts define a formal grammar for making claims about causal relationships between actions and outcomes.
For example, a carbon removal project could issue a Hypercert representing the verifiable capture of atmospheric carbon. This claim can be independently verified, decomposed into smaller units, combined with other claims, and traded without requiring its reduction to a single financial metric. The value of the Hypercert emerges from the social consensus around the importance of carbon removal rather than from its financial return alone.
This approach parallels what philosophers Amartya Sen and Martha Nussbaum achieved through the capabilities approach—creating frameworks that recognize plural forms of value without requiring their commensurability under a single metric. The critical innovation lies in making these claims tradable without requiring their reduction to financial equivalents.
Zero-Knowledge Verification and Privacy-Preserving Impact
Cryptographic zero-knowledge proofs enable verification of claims without revealing underlying data. This allows for the verification of impacts without compromising privacy or creating new forms of surveillance.
For instance, labor conditions in supply chains can be verified without exposing individual worker data. A company could prove that all workers in its supply chain earn living wages without revealing specific salary information, addressing what technologist Jaron Lanier identified as the asymmetric relationship between data providers and platform controllers.
Quadratic Funding and Democratic Resource Allocation
Building on the work of economist Glen Weyl and Ethereum founder Vitalik Buterin, quadratic funding mechanisms incorporate preference intensity and address coordination problems inherent in public goods provision. By matching individual contributions according to the number of contributors rather than contribution amounts, these systems give communities greater influence over resource allocation.
For example, a community development fund using quadratic matching would prioritize projects with broad support rather than those favored by a few wealthy donors. This exemplifies what Elinor Ostrom termed "institutional diversity"—creating governance and funding mechanisms appropriate to different types of goods and services rather than applying market mechanisms universally.
By incorporating these technical innovations, blockchain-based systems can implement what philosopher of technology Andrew Feenberg terms "democratic rationalization"—technical designs that incorporate a broader range of values than narrow market efficiency.
From Exchange Value to Real Value
The concept of "real value" draws on philosopher John McMurtry's distinction between the "money sequence of value" and the "life sequence of value." While the former prioritizes money as both means and end, the latter recognizes money as a means toward life-valuable ends. Real value optimizes for what McMurtry terms "life requirements"—the conditions necessary for human flourishing and ecological sustainability.
This framework incorporates insights from multiple disciplines:
Ecological economics. Economist Herman Daly's distinction between growth (quantitative increase) and development (qualitative improvement) helps us understand the difference between economic activity that depletes natural capital and activity that enhances well-being without exceeding ecological limits.
Feminist economics. Nancy Folbre's analysis of care work highlights how our current economic systems systematically undervalue the labor that reproduces and maintains human life. A real value framework would recognize care as fundamental rather than peripheral to economic value.
Commons theory. David Bollier and Silke Helfrich's work on "commoning" demonstrates how value emerges through collective governance of shared resources rather than private ownership and exchange alone. Real value includes the benefits of well-governed commons.
Capabilities approach. Amartya Sen's focus on "substantive freedoms" rather than commodity possession reorients economic development toward enhancing people's capacity to live lives they have reason to value.
By synthesizing these perspectives, we can develop valuation frameworks that recognize what sociologist André Gorz termed "the wealth of networks"—forms of value created through cooperation, mutual aid, and ecological regeneration rather than extraction and enclosure.
In practical terms, optimizing for real value means designing economic systems that:
Recognize environmental regeneration as wealth creation rather than cost
Value care work as productive rather than consumptive
Treat knowledge sharing as value-generating rather than value-depleting
Measure success through enhanced capabilities rather than asset accumulation
These shifts require not just different metrics but different mechanisms for allocating capital and coordinating economic activity.
Evolving Capital Allocation Praxis: Systemic Impact Investing, Post-Capitalist Philanthropy and the Measurement of Heterogeneous Value
The abstract frameworks outlined above find their initial practical expression in evolved forms of impact investing—approaches that intentionally seek social and environmental returns alongside financial ones. Traditional investing asks a single question: "What is the financial return?" Impact investing expands this to ask: "What positive changes does this investment create in the world, and for whom?"
The measurement of heterogeneous forms of value is not merely aspirational—it is already happening in increasingly sophisticated ways:
Impact measurement frameworks. Tools like the Ecological Benefits Framework (EBF) provide structured approaches to assessing ecological and social impact across different domains. When combined with verification technologies like those described above, these frameworks enable credible impact claims that investors and communities can trust.
Blended finance structures. Innovative financial vehicles combine different types of capital with different return expectations. For example, catalytic capital—investment that accepts higher risk or lower return to catalyze positive impact—can de-risk more conventional investment, creating layered capital stacks that serve multiple objectives simultaneously.
Outcomes-based financing. Mechanisms like Social Impact Bonds and Environmental Impact Bonds tie financial returns directly to verified outcomes. For instance, an environmental impact bond might pay investors based on measured reductions in stormwater runoff, creating direct financial incentives for ecological restoration.
Community-driven metrics. Locally-defined indicators allow communities to articulate what they value rather than having metrics imposed from outside. For example, the Happiness Index in Bhutan and community wellbeing indicators in indigenous communities provide alternatives to GDP as measures of success.
These approaches demonstrate that pluralistic value assessment isn't merely theoretical—it can drive concrete investment decisions and create verifiable returns beyond the financial. The key innovation lies in recognizing that non-financial returns aren't merely "feel-good" additions but can be measured, verified, and incentivized with precision.
The Ontology of Value: Beyond Returns to Theories of Change
A further evolution of the core logic of impact investing requires a transition from merely the measurement of outcomes towards a fundamental reconsideration of value itself. Drawing from Donella Meadows' pioneering work in systems thinking, truly transformative impact investing recognizes that interventions must address not just symptoms but leverage points within complex adaptive systems. As Meadows argued, "People who manage to intervene in systems at the level of paradigm hit a leverage point that totally transforms systems."
This systems-oriented approach shifts impact investing from a transactional frame ("what returns will this generate?") to a transformational one ("how does this intervention shift the underlying dynamics of the system?"). Such investing requires articulating robust theories of change—coherent explanations of how specific actions create desired outcomes through causal pathways within complex systems.
Effective theories of change in impact investing:
Identify system boundaries and interactions - Recognizing that interventions affect not just target populations but networks of relationships and feedback loops
Locate leverage points - Finding places within systems where small shifts can produce large changes, what Meadows called "places to intervene in a system"
Account for time delays and feedback - Understanding that effects may be non-linear and emerge long after interventions
Recognize emergence and self-organization - Acknowledging that systems have properties that cannot be reduced to their components
For example, rather than simply measuring the number of affordable housing units created, a systems-oriented impact investor might examine how their capital affects the broader dynamics of housing markets, including displacement pressures, community stability, wealth-building pathways for historically marginalized groups, and infrastructure development patterns.
Post-Capitalist Philanthropy and Systemic Investing
Looking beyond even the most innovative evolutions of impact investment, we discover the emerging field of what might be termed "post-capitalist philanthropy"—approaches that direct capital not toward ameliorating problems within existing systems but toward creating structural conditions for new economic arrangements. This approach recognizes what decolonial theorist Arturo Escobar terms "pluriversal design"—creating conditions for multiple economic models to coexist rather than imposing a single universal framework.
Post-capitalist philanthropy manifests through several emerging practices:
Non-extractive finance networks like the Boston Ujima Project and the Buen Vivir Fund create funding mechanisms that ensure communities retain control over assets rather than losing autonomy to investor demands. These models invert traditional power dynamics by making capital providers accountable to communities rather than vice versa.
Systemic investing approaches like Transform Finance explicitly target the underlying structures that create inequality rather than addressing their symptoms. These investors ask not "What social problem does this venture solve?" but "How does this intervention change the rules of the game that create social problems in the first place?"
Reparative capital flows acknowledge historical extraction and seek to repair rather than perpetuate harm. As articulated by scholars like Catherine Berman and Rodney Foxworth, these approaches recognize that financial returns often represent historical extraction from communities of color and indigenous peoples, requiring intentional reparative allocation.
Movement-accountable investing recognizes social movements as drivers of systemic change and allocates capital in service to movement strategies rather than imposing investor priorities. Organizations like the Chorus Foundation demonstrate this approach by funding movement infrastructure rather than specific programmatic outcomes.
Self-Definition in Impact Measurement: From Imposition to Co-Creation
Traditional impact measurement typically imposes external frameworks on communities, reflecting what anthropologist James Scott termed "seeing like a state"—rendering complex social realities legible to distant authorities. In contrast, emerging approaches emphasize what scholars Eve Tuck and K. Wayne Yang call "refusal"—communities' right to define impact on their own terms.
This shift from imposed to co-created metrics involves:
Community-defined indicators that emerge from participatory processes rather than expert determination. Projects like the Common Impact Data Standard demonstrate how communities can articulate success criteria rooted in lived experience while leveraging the legibility of interoperable digital data standards.
Cultural value frameworks that recognize what anthropologist Arjun Appadurai terms "the capacity to aspire"—culturally specific visions of the future that may not translate into universal metrics. Indigenous evaluation frameworks, for instance, often emphasize relationships to land and multi-generational well-being in ways that conventional social impact metrics cannot capture.
Power-aware evaluation that explicitly examines how measurement processes themselves distribute or concentrate power. As articulated by evaluator Vidhya Shanker, this approach asks "who defines problems, who defines success, who measures, and who benefits from measurement."
Narrative sovereignty that ensures communities control their own stories rather than becoming extractive data points for impact investors. Initiatives like the Open Future Coalition and Culture Hack Labs show how communities can build capacity to articulate their own narratives of change rather than having stories imposed upon them.
These approaches transform impact measurement from a tool of accountability to funders into a process of collective meaning-making and knowledge generation. They recognize what philosopher Miranda Fricker calls "epistemic justice"—ensuring that those most affected by investments have the authority to define what constitutes valuable change.
Implementing Pluralistic Capital Allocation Systems
The transition from theoretical frameworks to implemented systems requires attention to what sociologist Bruno Latour terms "translation"—the process by which abstract ideas become concrete sociotechnical arrangements. This translation process involves several interconnected components:
Ontological engineering. Developing formal taxonomies of value that can be computationally represented and operated upon. This involves collaborating with diverse communities to articulate the values they wish to see recognized and incentivized.
Mechanism design. Creating incentive structures that align individual actions with collective flourishing. This draws on game theory while recognizing that people respond to social and intrinsic motivations, not just financial ones.
Governance protocols. Establishing decision-making processes appropriate to different types of value creation. This incorporates insights from democratic theory and commons governance.
Integration interfaces. Building bridges between on-chain and off-chain systems to ensure real-world impacts. This involves developing verification systems that connect digital representations to material outcomes.
These components form what might be termed, following Yochai Benkler, a "commons-based peer production" system for capital allocation—one that enables distributed coordination without requiring reduction to a single value metric.
The implementation of these systems builds on what philosopher Manuel DeLanda, following Gilles Deleuze and Félix Guattari, terms "assemblage theory"—recognizing economic systems as emergent from heterogeneous components rather than expressions of underlying universal laws. This perspective allows for experimental implementation rather than awaiting comprehensive theoretical resolution of all conceptual tensions.
Global Impact Markets: Aggregating Contextual Attestations
The emergence of blockchain-based verification systems creates possibilities for what economist Mariana Mazzucato might term "markets shaping" rather than just market-taking—intentionally designing market infrastructures that recognize and reward public value creation. These systems can create what might be called "attestation markets" where contextual impact claims become globally tradable without losing their specific qualities.
Unlike traditional ESG indices that flatten impact into universal metrics, attestation markets maintain what philosopher Hans-Georg Gadamer called the "historically effected consciousness" of specific contexts. A carbon removal credit from an indigenous-managed forest in Brazil carries with it not just tons of CO2 sequestered but the specific cultural, ecological, and social contexts of its creation.
This approach enables:
Impact portability across jurisdictions while maintaining provenance and context. A regenerative agriculture project in Kenya can receive investment from anywhere in the world without having its impacts reduced to abstract universal metrics.
Value translation between different impact frameworks without requiring strict commensurability. Indigenous land stewardship practices can be recognized in their own terms while still making their benefits legible to distant supporters.
Nested verification where claims are validated at multiple scales simultaneously. Local communities can verify impacts according to their own criteria while broader scientific verification ensures global credibility.
Sovereignty preservation that allows communities to maintain authority over verification while accessing global markets. What indigenous scholar Kyle Whyte terms "collective continuance"—a community's capacity to adapt while maintaining its essential identity—becomes compatible with market participation rather than threatened by it.
These markets demonstrate what economic sociologist Michel Callon terms "market devices"—technical arrangements that enable new forms of exchange without predetermining what can be valued. Rather than replacing contextual determination of value with universal metrics, they enable contextual values to circulate globally while maintaining their distinctive qualities.
Beyond ESG: Voluntary Impact Markets for Systemic Change
Current ESG (Environmental, Social, Governance) frameworks predominantly serve risk mitigation rather than impact generation—helping investors avoid negative externalities rather than creating positive ones. Moreover, as legal scholar Brett Christophers argues, ESG often becomes a form of "value-grabbing" where social and environmental concerns are repackaged as financial value for investors rather than distributed to affected communities.
Voluntary impact markets transcend these limitations by:
Incentivizing additionality rather than rewarding business-as-usual with better labels. While ESG often recognizes existing practices, voluntary impact markets create incentives for new forms of value creation previously unrecognized by markets.
Enabling price discovery for previously non-marketized benefits. Rather than relying on arbitrary valuations of social and environmental impacts, these markets allow diverse participants to collectively determine the value of specific impacts through actual exchange.
Creating funding flows to early-stage transformation rather than established players. Unlike ESG indices that primarily direct capital to large corporations with resources for compliance, voluntary impact markets can route funding to community-scale innovators working on systemic solutions.
Bridging institutional and community capital through intermediaries that translate between different value frameworks. Organizations like Indigenous Commons demonstrate how capital can flow from institutional investors to community-controlled funds without imposing external priorities.
These markets represent what economic sociologist Karl Polanyi might recognize as re-embedding economic activity within social relations—creating exchange mechanisms that recognize the fundamentally social nature of value rather than treating it as an abstract property of commodities.
Ontological Engineering: Formalizing Theories of Change
The implementation of these pluralistic approaches requires what might be termed "ontological engineering"—the development of formal taxonomies and causal models that make diverse forms of value computationally tractable without reducing their complexity. This process involves:
Formalizing theories of change as computable causal graphs that can be verified, analyzed, and operated upon. Rather than static logic models, these become dynamic representations that can evolve based on evidence and learning.
Developing taxonomies of value that recognize both universal and context-specific dimensions. These taxonomies create what philosopher Susan Leigh Star called "boundary objects"—concepts flexible enough to adapt to local needs while robust enough to maintain identity across contexts.
Creating verification protocols appropriate to different types of claims. These range from scientific measurement to community attestation to algorithmic verification, creating what scholar Sheila Jasanoff terms "civic epistemologies"—culturally specific ways of creating public knowledge.
Designing translation mechanisms between different value frameworks. These allow, for instance, a corporate sustainability officer to understand and value indigenous land management practices without requiring those practices to be expressed in corporate terms.
This ontological engineering represents not just technical implementation but what philosopher of technology Andrew Feenberg calls "deep democratization"—extending democratic principles into the design of technical systems themselves. By creating infrastructure that can recognize diverse forms of value, it enables what political theorist Iris Marion Young termed "democratic inclusion"—ensuring that previously marginalized perspectives can participate in economic coordination.
Implications for Political Economy and Social Transformation
The development of pluralistic capital allocation systems has profound implications for political economy and social transformation:
Post-capitalist transition pathways. Rather than requiring revolutionary rupture or accepting capitalist realism's "no alternative" thesis, these systems create what sociologist Erik Olin Wright termed "real utopias"—concrete instantiations of alternative economic logics within existing systems. They offer evolutionary pathways toward more just and sustainable arrangements.
Non-binary governance. These systems transcend the state/market dichotomy through what Elinor Ostrom termed "polycentric governance"—multiple overlapping decision-making centers appropriate to different types of goods and services. Neither centralized planning nor market fundamentalism, but adaptive, context-sensitive coordination.
Technopolitical agency. By creating systems that enable democratic governance of economic infrastructure, these approaches address what philosopher of technology Langdon Winner termed "technological politics"—the ways in which technical systems embody specific forms of power and authority.
Epistemic justice. By incorporating diverse value frameworks, these systems address what philosopher Miranda Fricker identified as "hermeneutical justice"—ensuring that diverse communities have the conceptual resources to articulate their experiences and values within economic systems.
These implications suggest not a technological determinism but what Andrew Feenberg terms a "critical theory of technology"—recognizing how technical systems embody specific values while maintaining the possibility of democratic redesign.
Conclusion: Toward a Synthesis
Marx's dialectical method revealed how capitalism's internal contradictions generate both crisis tendencies and the conditions for their potential resolution. Following this methodology, we can understand blockchain-based cryptoeconomic systems not as techno-utopian solutions but as potential mediations of existing contradictions—creating what philosopher Ernst Bloch termed "concrete utopian" possibilities within the present.
The narrow optimization of traditional capitalism—its singular focus on financial returns—has delivered material abundance for some but at enormous cost to many and to our shared ecological foundation. By leveraging blockchain technologies and cryptoeconomic systems, we can build frameworks for capital allocation that transcend these limitations.
These systems can recognize the full spectrum of value creation, from environmental regeneration to social cohesion to knowledge commons to individual flourishing. The result will not be the end of markets but their evolution—from instruments of narrow financial optimization to vehicles for coordinating human activity toward genuinely valuable outcomes.
By developing technical systems grounded in empiricism that can recognize, measure, and incentivize diverse forms of value creation, we aim to contribute to the gradual transformation of economic institutions toward more just, sustainable, and flourishing arrangements.
The future of capital allocation lies not in the persistence of monistic valuation nor in its mere negation, but in a dialectical synthesis that preserves the coordinative efficiency of markets while transcending their reductionist value frameworks. By expanding what we measure, value, and incentivize, we can build economic systems that optimize not for narrow financial returns but for the flourishing of human and more-than-human communities across multiple generations.
casually dropping the greatest regenerative cryptoeconomics 101. thank you for your work. 🙏🏼❤️