ACP. Artificial Capital
... what kind of Capital (CAP) is tied to artificial things?
Not all capital is 'real' in that it can be touched in the physical world
Real capital degrades and requires continued investment. What about capital that does not degrade? This is artificial capital. Things like stocks and bonds are artificial capital.
Another way of saying this is that artificial capital is a 'contract' that has the potential to claim the right to the payment of cash or another asset.
Artificial capital does not need to be maintained. It can be an "immortal" instrument. As we have discussed with money, this is not an attractive quality for a thing to have without upkeep.
Artificial capital should be limited in life as well. We will discuss multiple methods on how this can be accomplished in later articles. To summarize here they are:
- Demurrage of Artificial Capital
- Corporate Death
- Taxation
- Diminishing value of future economic rents
Therefore:
Artificial Capital must be identifiable and must be forced to degrade or expire as all natural things do.
Artificial Capital can be controlled via Demurrage (DEM), Tax (TAX), Diminishing value of future economic rents (FSP), and Corporate Death (KIL). Artificial Capital can be tracked in the Public Ledger (PLG).