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UPLIFT EXPEDITION: The Philo as a Means of Stimulating Microenterprise at omidyar.net
Posted to: Uplift Expeditions by Sue Braiden (CCAL30) (2046), Fri, 05 Aug 2005 08:33:51 PDT
Edited: Sat, 06 Aug 2005 12:11:13 PDT
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Comments: 194 by 32 members
Viewed: 2576 times by 101 members
Challenge
Is it possible to create an alternative currency that will act as an incentive for member participation in better world building activities at omidyar.net? Can a pilot project stimulate microenterprise?
While there are lots of really great discourses on alternative currencies in various groups around omidyar.net, I want to bring this particular dicussion into the "Uplift Expeditions" group in order to "test drive" it.
What's an Uplift Expedition?
Last year I shared some thinking about "Uplift Expeditions", and how they might be applied here at omidyar.net. Here's what I mean when I use this term ...
To learn about the ways that time-limited "expeditions" might be used to quickly gather natural allies and resources together to produce a knowledge product about a specific uplift opportunity. To share these knowledge products with both the omidyar.net community, and the broader global community, to further broaden the discourse about "what works" and help scale that innovation up.
I've shared more details about this over here:
http://www.omidyar.net/group/expeditions/news/0/
In a nutshell, when an opportunity for some form of uplift is discovered, and it's one that might give us some insight into not only how to do it here, but how what we learn might help do something like this again, somewhere else, you invite folks to engage in a time-limited project, with the intention of documenting and sharing it during and after.
Invitation to Join the "Philo Pilot" Uplift Expedition
This particular uplift expedition is designed to explore the opportunities that may exist in creating an alternative currency to stimulate better world building activities at omidyar.net, and the ways in which this might create cascades of uplift outside of this community.
I'm inviting other members to join me in a 6-month pilot project, using Tom Munnecke's example of the "philo" as a test currency. The intention is to stimulate the creation of better world building products and services, and to create incentives for doing that. If it works, it may provide a more long-term incentive for community members to engage, innovate and invest themselves in the omidyar.net community.
Current Constraints
While the reputation system at omidyar.net functions as a means of investing one's own reputation into other people, and into "thinking" and "doing" that exists in the form of discussions and workspaces, there is currently no way to translate that into a real world economy.
Tools like DropCash Campaigns and Fridge Magnets have helped bubble uplift opportunities up into broader view, and to capture support in the form of funding, resources and allies. It's been suggested that the DropCash tool be used to help stimulate the production of member-driven products and services, such as workshops and related knowledge products, but we don't seem to be at a tipping point yet where people are compelled to engage in this way on a larger scale.
There appears to be a growing frustration in the community when it comes to individuals recognizing the value of their contributions, and feeling a sense of an unbalanced return.
What kind of breakthrough innovation might help to change these perceptions and realities in a way that might real spark engagement a cascade of better world building, and celebrate/reward member innovation?
Uplift Opportunity
Examples of How this is Working Well in Other Places Now
Philip Rosedale has created a pioneering, fully-immersible community called "Second Life". Part of the attraction is the vibrant, inworld economy that members are invited to participate in, and how this translates into a "real world economy". Second Life's economy is based on an alternative currency called "Linden Dollars".
People earn a small stipend for simply logging in and participating in the community each week. "Premium members" (those who are paying a small monthly fee to participate in a deeper way) are paid a larger stipend each week.
Other members earn Linden dollars by creating events which garner revenue based on something called "dwell" (a stipend pay to a user by the system based on the amount of activity their locales generate), and sometimes by charging fees for member participation in these events (for instance, entry into a jazz club where members are collaborating on a live music event played in diverse real world locales but mixed together as a performance in this virtual one).
One of the most interesting ways that Linden dollars change hands is through the innovation of it's members, as they come up with creative new inworld products and services to offer. Sometimes these products exist only in cyberspace (for instance a member might create a line of clothing that people can purchase for their avatars, or designer houses that they can erect on their land, or a-life pets with which they can interact). Some people have found innovative ways of creating a Second Life store front, instead of a brick and mortar one in the real world, to offer real products and services. For instance, one member allows you to place orders in Second Life for real cookies that will be shipped to your door, and to pay for them in Linden dollars. Why would anyone trade something with a real, hard dollar cost for virtual dollars? Because these Linden dollars can be bought and sold on a virtual stock exchange for real U.S. dollars in return.
$1,000 Linden dollars are worth approximately $4.00 USD when traded at places like GamingOpenMarket.com. The is a web site that functions very much as a real world stock exchange does, with members offering blocks of 1,000 Linden dollars for sale at a rate they choose, or buying blocks from members who have them for sale. Like a real world market, it self corrects. When someone tries to flood the market with cheap blocks, there is a group of members who generally swoop in and buy them up to prevent the market from being undervalued. At GamingOpenMarket, trading is supported by "PayPal". When you buy a block of Linden dollars, your PayPal account is charged for that sale, in addition to the standard PayPal fee charged. When you sell a block, the money is deposited into your GamingOpenMarket.com account, and you can withdraw it at any time, minus a small transaction fee that is levied by GamingOpenMarket.com for each sale.
How Might this Innovation be Applied at omidyar.net?
So how might the lessons learned from this particular kind of alternative currency be applied here at omidyar.net?
Is it possible that we can look at the activities of "better world building" as a microenterprise? Is it possible that having a virtual currency, such as the Linden dollar, might stimulate a higher level of engagement, greater investment in activities, and a cascade of uplift for both real world organizations and for community members?
Tom Munnecke often talks about the idea of using an alternative currency called "The Philo" to stimulate philanthropic activities. What might happen if some of us were to invest in creating an initial block of "philos" to stimulate a test economy to fund activities in omidyar.net? What would happen if these philos were made available to a group of members as part of a pilot project? What would happen if we invited people to think about the kinds of better world "products" and "services" that they might offer here as part of that project? Would it encourage "co-opetition"? Would it stimulate a new burst of activities? How might that nurture uplift opportunities? Could philos be invested into uplift scholarships? Could they be earned through services like workshops? Might they lead to the creation of "knowledge products" that helped capture what's working in real world ways and synthesizing that as kickstart kits that help community champions in other places replicate this innovation and scale it up?
Next Steps
Brainstorming Around the "How"
It might be helpful to invite Philip Rosedale of Linden Labs, the original architect of the Second Life project and it's economy, to join us here for a little brainstorming around what he's learned, and how we might apply that to a "Philo Pilot Project" here at omidyar.net.
It may also be helpful to invite Tom Merrall, the president of Gaming Open Market, (and perhaps past President, Jamie Hale) to join us to talk about the possibility of using his existing system to create a time-limited pilot project around the philo.
Each of these gentleman would bring with them a valuable perspective about what it takes to set up an alternative currency, the inherent risks, and the best opportunities to innovate.
I've had chats with both of them in the past, and I find them to be not only tremendous innovators, but very approachable, engaged and energetic individuals. I'm comfortable with reaching out to both of them personally to ask them if they'd be willing to do a bit of brainstorming with us on this here.
An Initial Member Investment to Stimulate Activity
Perhaps we could set up a DropCash campaign with a $5,000 limit and invite people who wished to partner on the creation of an initial set of blocks of philos to invest. This could be used to create an immediate real world value for these philos, which could then be distributed to members participating in the uplift expedition to reinvest into member projects as they see fit.
As part of this experiment, we might invite the entire omidyar.net community to simply innovate, as Philip Rosedale and the folks at Linden Labs did with Second Life. Rather than presuming to know what kinds of products and activities may be seen to have the most value, we can take the same leap of faith that Philp and his team did and let individual members figure that out.
The Need for Boundaries
I suggest establishing a 6 month pilot project, in which people can invest these philos into whatever products and services result, and during which time philos can be traded through a virtual stock exchange, like Gaming Open Market, up until the end of the pilot project. By creating a time-limited pilot, it may help create a sense of urgency, and stimulate a more active and immediate engagement.
As members "earn" philos, they can decide for themselves if they will simply cash them in and keep the profit in return for the services they've offered (microenterprise), or reinvest them all or in part into other member products and services. In addition to individual members creating products and services to earn philos, we can hope that this will also provide an incentive for organizations to engage and bring their special knowledge and resources to the table, which may in turn spawn another level of uplift.
As with any pilot project, there is the element of risk. The initial investment may not pay off. This is why I suggest a capped, time-limited period for this to take root. We can continually assess how viable the pilot project seems to be, and what kind of adjustments might need to be made in order for a more permanent "philo" economy to be cultivated successfully if this works.
First Step?
I invite you to join me in this expedition by first sharing your own thoughts on this below. How might what I'm proposing be made better? What kinds of things am I not thinking about yet? Are there risks that need to be considered? What would success look like so we'd know if it was worth cultivating more long term?
What say you, better world scout and fellow explorer?
Are you ready to outfit for this adventure?
;^)
Comments page 1
By Michael Maranda (CCAL30) (3908), Fri, 05 Aug 2005 09:37:51 PDT
Comment feedback score: 0
Reporting for duty.
topBy Page Trygstad (465), Fri, 05 Aug 2005 09:44:34 PDT
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I understand and will engage in further exploration of this with you and others.
By Cynthia Gentry (CCAL30) (1914), Fri, 05 Aug 2005 09:48:58 PDT
Comment feedback score: 0
Hey, girl.
Gonna be out of pocket for a couple of days getting some due diligence work done for a guy who may invest in Art Heals. Will try to wrap my feeble brain around this when I get through.
By Rose Vines (906), Fri, 05 Aug 2005 10:05:06 PDT
Comment feedback score: 1 (*)
Sue, did you see the brief reports from the Chicago conference which directly relate to Onet currencies. One was simply a conversation between Ted Ernst and me about Onet Help Dollars; the other was a session led by Mickki Langston on Using Reputation Currencies on Onet.
Different ideas, but clear links.
By Sue Braiden (CCAL30) (2046), Fri, 05 Aug 2005 10:29:18 PDT
Comment feedback score: 0
No, and thanks! Will check this out ...
(the downside of not being able to attend, and not keeping up with all of the stuff that folks have been sharing since they got back)
By David Rosenberg (CCAL30) (454), Fri, 05 Aug 2005 10:29:59 PDT
Comment feedback score: 0
this is way out of my comfort zone in terms of knowledge.
therefore, i am reporting for duty to play and explore as the philo intern.
By Sue Braiden (CCAL30) (2046), Fri, 05 Aug 2005 10:35:47 PDT
Comment feedback score: 0
LOL!!! The point of an exploration is to dig in and discover more about something you might not know much about but that seems like a good hunch. Glad a number of you are willing to kick the tires on this one a bit more in spite of many of us not knowing exactly how, or where this might go.
Cynthia, good luck with ArtHeals. I hope this pans out!
Any questions based on the thinking I shared above?
Does it make sense to create a small investment pool to kick this off with? I don't know if it addresses the context of whatever was discussed at the conference, or any action items they may have come away with, but heading over to check that out.
By Evonne Heyning (CCAL30) (2442), Fri, 05 Aug 2005 10:43:06 PDT
Comment feedback score: 0
Sue, I hope to get back to Second Life next month to start playing with you again. Best wishes on this....more to come.
By Sue Braiden (CCAL30) (2046), Fri, 05 Aug 2005 10:52:26 PDT
Comment feedback score: 3 (* * *)
From the Walk-by discussion: Onet Help Dollars workspace:
Between Rose (coming from Connecting Africa discussion) and Ted (coming from alternative currencies discussion): We already have one "currency" on Onet, in the form of feedback points. Can only be spent in very specific ways. How about other currencies, such as "Help dollars"? Say, for example, an Onet Guide gets "paid" Help dollars for their service -- perhaps based on the feedback received from their "client". Then, those Help dollars could be spent for some other Onet service: perhaps another member can show them how to set up their first blog on their own web site.
What Ted's written above is one example of how something like "philos" might be used to reward engagement.
Regarding Mikki's workspace Using reputation currencies on omidyar.net: this is a great example of how we can use current omidyar.net tools (like polls and voting) to allocate existing funding and resources. Where is this funding coming from? The money still has to come from somewhere.
What I am suggesting in the "philo" project is the "how", or at least "where" the initial funding might come from for the two projects being explored above.
Lots of people think that being here at omidyar.net means that the money should implicitly come from the Omidyar Network. I don't agree. I'm suggesting that we recognize our own power to launch a currency. I am willing to invest some of my own money in doing so, because I believe it's a risk worth taking. If people are already engaging without the incentives of funding, imagine what might be possible if we create a simple means of stimulating an economy here?
I look to another example: The Bright Idea Society, which was a web site designed to attract thinkers, and compensate them for their ideas. An airline company posed a challenge: how do we make people more comfortable in limited space? An appliance company posed a challenge: how do we make a better washer? There were two levels of participation there. Anyone in the community could post an idea, and receive compensation for it based on the number of feedback points that other community members invested into it. People were paid real money for this based on venture capitalists that saw the potential of creating a place where the generation of "idea capital" was rewarded. That's not unlike what we are doing here, although instead of working to find ways of creating more comfortable airplanes, or better washers, we're working to find ways of building the capacity of real world communities to not only survive, but to thrive. I mentioned there was a second way people participated at BIX, and this was in a "think tank". It was by invitation only. The general community created a good incubator in which you could observe the kind of innovation the people were capable of, and this led to some community members being sponsored to participate in the think tank. People in this group were available for companies to draw on as a virtual consulting firm, with a more robust level of compensation. They were people who had already proven their ability to think quickly and to innovate.
It's just another model of rewarding engagement and innovation.
My choice to take a personal risk by investing from my own pocket into an initial pool here is how I want to demonstrate that I believe this community has the capacity to do great things, and that these things can gain better traction if we find a way of also meeting the needs of the members of this community so that they can invest without it being at their own peril.
I'm willing to take that risk. I'm wondering if there might be other people in the community that are willing to invest in this project too? $5, $500 ... doesn't matter. The notion of being OUR OWN launchpad is what I'm asking people to consider. While some folks are waiting for money to be injected into the community, I'm asking that we consider doing this ourselves.
By Rose Vines (906), Fri, 05 Aug 2005 10:53:21 PDT
Comment feedback score: 1 (*)
Sue: The discussions I was a part of at the conference focussed on non-monetary currencies (that is, not based on an investment pool of "real" money). For example, the Help Dollars would be something you receive for doing work here on Onet, and you could spend them on work done for you on Onet.
The example Ted and I thought of: As an Onet Guide you might receive a payment for your guiding service, the amount of the payment based on the feedback received from those you guide. You could then use the Help Dollars you've received to, say, get someone else on Onet to help structure your workspace, or show you how to set up an audio blog on your own site.
The Help Dollars would only be usable on Onet (or, at least, between Onetters), making this a local currency. One of the advantages of a local currency, is it keeps activity/energy/work within a community. Once you convert your currency to an external monetary unit, the energy flows out of the community.
(The session led by Mickki tied all this much more closely to feedback points, and it was more about replacing the existing points system with something more useful.)
By Rose Vines (906), Fri, 05 Aug 2005 10:54:32 PDT
Comment feedback score: 0
Looks like we posted at the same time, Sue, so excuse any repetition.
By Sue Braiden (CCAL30) (2046), Fri, 05 Aug 2005 11:01:45 PDT
Comment feedback score: 1 (*)
To better explain why I think our "reputation" system and our "economy" should be two different but complimentary functions, I'll draw another example from what I've already seen at work ...
In Second Life, the "reputation/rating" system is a separate function from the economy. Personal reputation and personal earning are not the same thing. Personal reputation is used as a means of demonstrating that the larger community has faith in this individual, that they've shown themselves to be good in one or more of three specific areas of engagement inworld:
- overall behaviour
- appearance
- building skills.
These are three yardsticks used there, and they wouldn't be the same ones here. In order to rate someone, it costs you $25 Linden for each category that you rate them. This provides an additional incentive for rating with meaning.
In addition to people, you can also rate objects that they've created. Here at omidyar.net, that would be the value of goods or services.
The ratings in Second Life are not a currency, however, they are a sign to consumers -- like a Better Business Bureau status if you will -- that this is a trusted member of the community, which can help people make better buying decisions.
I don't see our omidyar.net reputation points being the thing that we turn in for real dollars. I see them being what they are now -- a sign that members of the community think that a particular person is a trusted member of the community, and that particular ideas (comments, workspaces) have value. I don't see translating that in itself into a currency.
This is why I'm suggesting "the philo". I see it being apart from the reputation system, and like any new economy, requires an initial investment to get it started.
I'm suggesting that as community members that we're the ones who might make that investment. It will allow us to do what Mikki and others are saying once that currencies available to be used -- that we can direct it to supporting projects that lead to uplift, and to supporting people who are agents of that (for instance, our pseudo "uplift scholars" as they prepare to head to Sudan).
By Sue Braiden (CCAL30) (2046), Fri, 05 Aug 2005 11:04:56 PDT
Comment feedback score: 0
Rose Vines said:
Looks like we posted at the same time, Sue, so excuse any repetition.
LOL!!! And I just did the same thing again ...
I think there's a simple difference between the two sets of projects. What's coming out of the conference is a "what" (here's what we can do with money that's already there), and what I'm suggesting here is a "how" (here's how we fund that initially). Mikki's workspace talks about the way we can use reputation to direct the flow of funding and resources to projects. I'm suggesting a way we might make money available to help stimulate that.
By barbara spalding (CCAL30) (1089), Fri, 05 Aug 2005 11:43:12 PDT
Comment feedback score: 0
I'm trying to understand. Sue, are you talking about doing something in a Second Life type environment? The long term goals are to find ways to benefit meatspace communities? We will put our money together and invest it in each others' projects? We earn philos and these are currencies that can be exchanged for real dollars? We are looking for ways to promote cooperation (co-etition, I think you said) as well as innovation?
BTW, I've never been to Second Life, but I have always thought it should be called Third Life cause I think most of us live in second life most of the time, if you get my meaning.
By ted ernst (CCAL30) (2630), Fri, 05 Aug 2005 11:46:56 PDT
Comment feedback score: 0
I'm here. I'm facinated. It's all coming together and it's all coming apart. Currencies were a huge undercurrent at the conference. Mickki convened several sessions. She and Arthur Brock are the ones among us most immersed in the world of currencies. I've invited them to this topic. Mickki's point of view is that reputation systems are currencies, because they influence behaviour. And that it's a really good idea to have a tapestry of different currencies targeted to different needs of a community. There's absolutely no reason why working on the philo can't go on at the same time as working on the reputation currency. Very cool.
By Norbert Mayer-Wittmann (aka nmw wuz here) (396), Fri, 05 Aug 2005 13:32:28 PDT
Comment feedback score: 0
I'm here.
I expect Mikki and others who are more immersed in virtual mula will show up soon?
...
just a moment -- I'll be back (will someone put on some tea while I go do some errands?)
oh, wait -- are there any mimeoed sheets (I always hate missing an opportunity to smell the fresh ink -- even if it doesn't smell so good, I think it's neat-o when something special like that happens) no? ok -- I'll be back soon...
Don't blow anything up without me! :D
nmw
By Michael Maranda (CCAL30) (3908), Fri, 05 Aug 2005 13:33:52 PDT
Edited: Fri, 05 Aug 2005 13:34:37 PDT
Comment feedback score: 0
I wasnt part of the gemstone discussion, but that appeared fascinating, and if not viable for inclusion in the current (above) proposed exploration or experiment, I think it that idea is likewise worthy of an experiment here. (But if it is amenable to being part of what is proposed, I do endorse that.)
When reporting for duty I should have been as circumspect as Mr. Rosenberg. :)
By Gina Del Vecchio (CCAL30) (871), Fri, 05 Aug 2005 13:38:19 PDT
Comment feedback score: 1 (*)
Excellent presentation of the idea, Sue. I'm on board.
To start with, we need to gather actual dollars, right? I've got my cash ready to drop, if we all agree that's within the next steps.
And, we don't need to participate in Second Life, right? I'm actually a member, but my laptop doesn't support the graphics, and since I'm almost always travelling with my laptop... (I'm due for a new 'puter soon; supporting SL is going to be one of the primary parameters. I need to see Carla's hair.)
This idea presents some really intersting possibilties about enhancing (or maybe just focusing) the value of rep scores in an online community.
Lots of things to think about. I'm going to go percolate (coffee and throughts) on this now.
By ted ernst (CCAL30) (2630), Fri, 05 Aug 2005 13:50:28 PDT
Comment feedback score: 0
Last I spoke with Mickki and Brandon, the plan was for her to finish her draft of how the stones/tumbles/gems would work, then impliment it as a test on the openonet overlay that Brandon's working on. He's on vacation this week (celebrating!) and she's at a currency conference, so I'd expect we'll see something (at least a status report) next week.
Seems tottally different from this idea. I think. :-)
By Soren Gordhamer (1423), Fri, 05 Aug 2005 14:01:56 PDT
Comment feedback score: 0
Wonderful to know this is happening, just what I was looking for. I will do what I can. Also, I know "leaders" on Onet are sometimes not encouraged, but I for one want to encourage those with the "vision ball" to run with it. Let me know what to do to help, Sue.
By Michael Maranda (CCAL30) (3908), Fri, 05 Aug 2005 14:17:56 PDT
Comment feedback score: 0
Is there a general write up of proposed mechanics? This is somthing that would operate in o-net context, but with a sytem parallel or group-governed mechanism, correct? what sorts of transactions would there be? How are they accounted, transacted? etc...
By Norbert Mayer-Wittmann (aka nmw wuz here) (396), Fri, 05 Aug 2005 14:40:23 PDT
Comment feedback score: 0
Positive Flip: Move ahead
Sue asked: What might spark engagement a cascade of better world building, and celebrate/reward member innovation?
Groceries.
This reminds me of omidyar.net Agenda -- a currency in heaven is all good and fine but as Jean said it doesn't pay the bills.
I think it's probably going to be a matter of intra-omidyar -- and/or I doubt that "real" transfers could be organized to every corner of the globe without paying through the nose. Are we talking about this? Or are we talking about cutting the 2nd, 3rd and other worlds loose?
Hmmm... complex.
In the precursor to that thread, Meron noted that philanthropy might involve community -- shared goals & objectives? Pulling together? Rubbing backs -- yours and mine?
Just a little whirlwind...
By David Braden (CCAL30) (1865), Fri, 05 Aug 2005 15:16:35 PDT
Comment feedback score: 0
Thank you for inviting me Sue. I am kind of tied up in designing another project with Larry Victor right now but I will add you to my watch list and keep track of your progress.
By Ray B-r-o-s-s-e-u-k (CCAL30) (1414), Fri, 05 Aug 2005 15:27:46 PDT
Comment feedback score: 1 (*)
Sue
I just read it twice, so it would sink in. I really appreciate your ability to get to the kernel of the issue.
I think that you are on to something here. If lots of people get on the bus and bring their tool boxes ie;( talents) with them, that between all of us we can fix anything that brakes along the journey and reach some beautiful place:)
I'm on board count me in.
Ray
By Luke Martin (1846), Fri, 05 Aug 2005 09:26:05 PDT
Comment feedback score: 0
I'm intrigued, Sue, though my experiences to date with money in an online community aren't particularly positive. But I'm open minded and curious, so I'm willing to tag along with you for a while.