The Capitalist
Who: The capitalist spends cash on assets that she thinks will either be worth the same or more when she sells them, or that produce rent payments.
What will our system look like to the capitalist? The public ledger is a place where the capitalist can record her ownership of real capital, artificial capital, and loans to debtors. This helps the capitalist secure her assets.
What about artificial capital? We discussed earlier that artificial capital is not natural. Things that do not die and fade away seem to go against natural law and lead to problems of imbalance and inequality. Our system address the idea of artificial capital in corporations by implementing to the diminishing value of economic rents. A corporation will eventually have so many prefs owned in its account that it will be unattractive for new market participants to do business with that entity. As a result corporations will eventually die. So while the artificial capital in that business may not fade, the underlying asset will.
Real capital tends to degrade on its own and require investment to maintain its value.
Ultimately, capital will continue to concentrate without some release valve. For this we propose a heavy capital tax as a part of the Legacy process. This allows a capitalist the fruits of her labor during her lifetime, but distributes the proceeds back to society at the end of her life.
Ultimately the burden on the capitalist is increased. Some of the economic rents that would be paid to the capitalist will now be distributed via demurrage. In addition the the companies that the capitalist is investing in will have a shorter shelf life and she will need to be proactive in timing the selling of an asset.
This new system is 'less fair' to the capitalist than the current system. This by design as we feel the capitalist has an unnatural advantage under non-hypercatallaxy.
The upside for the capitalist is a massive reduction in risk for the capitalist. Currently, when a capitalist invests in a company 100% of the capital is at risk. Under hypercatallaxy, as the invested in company spends the invested money it will begin to accumulate prefs. These prefs will find their way into profitable parts of the economy and even if the business is a complete bust, it is likely that some capital will eventually be returned to the investors in the form of predistributed economic rents from some tangential industry that they helped thrive.
We believe this trade off will increase the possibility scope of what capitalists will be willing to pursue. This will tap as of yet unaddressed human ingenuity and productivity. I believe that this will lead to increased productivity and profitability of humanity.