Almost anything one owns and uses for personal or investment purposes is a capital asset. If one uses quantifiable tokenized influence to acquire or make new asset investments, then influence indeed should qualify as a capital asset.
Based on our experiment using tokenized influence as a means of funding projects, we formulated a hypothesis that set out to investigate if influence can indeed be treated as a new asset class. During our investigation, we discovered that apparently “Influence Capital” might just not only qualify as a new asset class, but could well be a much bigger deal than we originally thought.
Testing The “Influence Capital” Hypothesis
To test the “Influence Capital” hypothesis, it is broken down into its following five elements, and each is evaluated against the evidence collected from our ongoing ZeroCash Pre-Alpha experiment:
- An autonomous, decentralized network of computer nodes using consensus based asset staking ledger technology (blockchain): We used Steemit.com platform deploying Steem blockchain as asset staking technology and Steem tokens as the asset.
- creates a new large asset class of human capital — Influence: This is a question we finally answer after analyzing the three subsequent elements.
- that is harvested from ownership of tangible or intangible assets owned by individuals or legal entities: Steem tokens were the intangible assets owned and staked by @sharonomics to initiate an experiment in early 2018. Content creation and curation activities generated new assets, which were either Steem tokens or Steem Dollars, which were pledged to fund @prosperist DEX.
- that can be tokenized for sharing, delegating, leasing, mortgaging, without actually ceding the custody or compromising the ownership of the underlying asset or subjecting it to any kind of risk: The new assets were generated merely by delegating the influence accrued from the assets owned and staked without actually ceding custody and ownership of the original assets secured in their wallets, or risking them in any way.
- can be converted to any fiat currency of choice: While the original assets remained safe and secure in owners’ wallets the new assets (Steem and Steem Dollar tokens) harvested from the delegated influence were capable of being liquidated to any desired currency in any cryptocurrency exchange.
In the final analysis, the question framed within the hypothesis (the second element of the hypothesis) is answered using the infrastructure elaborated in the first element, and the steps validated in third, fourth and fifth elements of the hypothesis. The answer clearly is, the influence accrued from the assets (Steem tokens) staked and delegated by the wallet owners generated new assets as incentives or rewards for participation, which is further explained herein.
In the ZeroCash pre-alpha experiment, participants did not spend their Steem assets to acquire new assets (Steem tokens or Xteem tokens), but only used the tokenized influence emanating from their Steem holdings securely staked in their own personal wallets. Yet they earned new assets equivalent to a return ranging between 30–40% APR depending upon market conditions (e.g 39% APR on February 24th 2019).
It therefore ensues that they used their tokenized influence to invest in new project tokens.
Almost anything one owns and uses for personal or investment purposes is a capital asset. In the present case it was obviously the influence capital that they owned.
Is Influence Capital a sub-class of Human Capital?
The remaining portion of the hypothesis question now is: does influence capital belong to a large asset class of human capital? We address that question in great detail in the next article, but briefly suggest here what’s obvious on the face of it.
Human capital, which includes several intangible attributes, is fast becoming a fairly established new asset class in prior art literature. Although Influence capital may not have been explicitly included as one of the many human attributes directly associated with human capital so far, but it indeed is indirectly implicated in connection with almost all of the other attributes of human capital. In other words, no matter what kind of asset one considers as human capital, it is inherently endowed with “influence”.
A recent research report values global human capital at $1,215 trillion, 2.33 times the value of total physical capital. That makes INFLUENCE CAPITAL a big enough discovery warranting further research into defining its place in the global assets landscape. We look into that landscape in our next article on Influence Capital. Please stay tuned.
If you like what you read, please do share your influence. Let’s just show you one simple way to do it.
This article was originally published on Medium
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