Healthy Organizational Structures

Commitment Pooling Offers a Way Out of Employment and Share-based Ownership

In a world where traditional employment and shareholding structures often limit flexibility and foster dependency, the Commitment Pool offers an innovative alternative. This model fosters mutual service offerings via formalized commitments within curated marketplaces, drawing on our shared heritage and redefining the way we think about work and ownership.

The Commitment Pool Cooperative Model: Shifting Frames

The concept of Commitment Pools, developed through observing indigenous practices and implemented by the Grassroots Economics Foundation, challenges traditional economic relationships by shifting from hierarchical employment and ownership to mutual service provisions. These pools begin with individuals expressing their services as formalized commitments, termed "community asset vouchers." These vouchers not only represent a commitment to provide services but also ensure that these services are valued and respected by their recipients - fostering a culture of mutual respect and fairness.

Community asset vouchers differ significantly from traditional employment or shareholder agreements. Unlike an employment relationship where the balance of power often leans towards the employer or share holders, vouchers (formalized commitments) establish a clear and reciprocal relationship between service providers and recipients. This setup ensures that each participant is both a fair contributor and a recipient, emphasizing respect and mutual benefit over hierarchical structures.

From Organizations to Commons

One of the unique aspects of Commitment Pools is their structure as a commons rather than a formal organization. These pools curate a variety of services that are necessary for product development, including labor, thereby creating a comprehensive ecosystem of service exchange. Participants in the pool have drawing rights to resources within the pool, which include digital assets like cUSD, based on their contributions and needs.

This structure is radically different from traditional corporate shareholding or decentralized autonomous organizations (DAOs). Unlike these models, which often focus on profit maximization and can involve speculative investment, Commitment Pools prioritize sustainable service exchange and community well-being. They operate on principles of reciprocity and mutual aid, drawing on the ancestral wisdom of rotational labor associations which have historically sustained communities through shared efforts and resources.

A Business to Commons Transformation

Consider a business transitioning into a Commitment Pooling model. In this scenario, each employee becomes an independent contractor, and is allocated drawing rights from a common pool - where they can contribute (on their own terms) their specialized services. As revenue is generated through the sale of vouchers in the pool, members can exchange their commitments (via their drawing rights) for any assets within the pool, further driving the cycle of mutual service and benefit.

This transformation allows former employees, now contractors, to engage directly with the value they create, exchanging services with one another and drawing from the pool's resources without the intermediation of traditional employment contracts. This setup not only enhances individual agency but also strengthens the community by pooling resources and capabilities in a fair and structured yet flexible manner.

Step 1: Express and formalize commitments for deliver products (goods and services.) You can do this as a business as each person that contributes to your businesses products can also do it for their own services. https://sarafu.network offers a free service for publishing and utilizing your formalized commitments as Community Asset Vouchers.

Step 2: Curate these vouchers into a Commitment Pool (example). Establish which assets are allowed into the pool and which vouchers are allowed to have drawing rights in the pool and how much. i.e. You might decide that USD are allowed into the pool and each contractor’s vouchers are added giving them a drawing right from the pool of up to $1000 USD. The business may put their own vouchers in the pool (loyalty points, gift cards, tickets, subcriptions etc.) - allowing the public to buy them by placing USD into the pool and removing the vouchers. Note any of the allowed contractors have a drawing right to place their vouchers as well into the pool to remove a drawing right of USD. Note importantly that exchange between assets in the pool will work even when there are no USD in it (building resilience). Also note that Pools can be collectively managed and connected together to form federated networks of exchange. If you are interested in setting up a pool - contact my or the folks at Grassroots Economics (info@grassecon.org) and a team of Grassroots Economists can help you.

Step 3: Broaden and diversify your pool. Invite people (like those along your supply chain) to contribute their Vouchers into the pool (giving them drawing rights) in exchange for the assets in the pool - this is a way of establishing credit in a network of mutual service providers.

Encouraging a Shift in Business Culture

Businesses around the world can view Commitment Pools not merely as a novel economic model but as a viable alternative to traditional structures that create dependency and often suppress creative and economic potential. By adopting this model, businesses can help create a poly-centric mutual service industry where value and services are exchanged equitably, fostering a culture of cooperation and mutual respect.

This approach not only alleviates the limitations imposed by conventional employment and ownership models but also promotes a sustainable and inclusive economic environment that values every contributor's service equally. It represents a significant shift towards a more collaborative and equitable economic system, encouraging businesses to rethink how they organize, value, and compensate labor in a rapidly evolving world.