How It Works

Free Association operates on simple data points published by each participant. The system uses these to calculate optimal resource allocation automatically.

Core Data Points

1. Recognition Weights

Who contributes to your organizational goals?

Each entity allocates 100% of recognition among contributors.

Properties:

• Non-transferable (cannot be bought or sold)

• Dynamically adjustable as relationships evolve

• Can reflect direct operations or broader mission-aligned values

• Organized as a contribution tree

Example:

Humanitarian Organization A recognizes:
- Partner NGO B: 30%
- Local Community Group C: 25%
- Technical Infrastructure Provider D: 20%
- Aligned Advocacy Network E: 15%
- Emergency Response Partner F: 10%
Total: 100%

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2. Available Capacity

What resources can you offer?

Declare surplus resources available for allocation.

Resource Types:

• Funds

• Expertise

• Facilities

• Time

• Equipment

Filters:

• Time windows

• Geographic locations

• Resource type specifications

Example:

Foundation X declares:
- $500K/month operational funding
- Available: Next 6 months
- Filter: Healthcare and education sectors
- Location: Any

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3. Declared Needs

What resources do you require?

State specific resource requirements.

Properties:

• Real-time updates as needs evolve

• System caps allocations at declared needs

• Prevents resource accumulation

• Enables precise matching

Example:

Organization B declares:
- $200K/month operational funding
- $100K emergency medical supplies
- 40 hours/week technical expertise

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4. Mutual Recognition

Bidirectional acknowledgment of contributions

The system calculates mutual recognition between any two entities:

MR(Entity_A, Entity_B) = min(
    Recognition_A_gives_B,
    Recognition_B_gives_A
)

Why minimum?

• Ensures proportional reciprocity

• Prevents unilateral inflation

• Creates natural incentive for accurate recognition

Example:

Organization A recognizes B at 50%
Organization B recognizes A at 10%
→ Mutual Recognition = 10%

Self-Recognition: Valid for time-shifting resources within your own organization.

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5. Contribution Trees

Structured tracking of contribution types

Recognition organized as branches representing different contribution categories.

Structure:

• Each branch = contribution category (program areas, operational support, etc.)

• Points distributed among contributors within each branch

• Global recognition calculated from weighted contributions across all branches

Benefits:

• Granular tracking of different contribution types

• Maintains overall coherence

• Enables precise recognition patterns

Example:

Organization Structure:
├── Program Delivery (50% weight)
│   ├── Partner A: 60%
│   └── Partner B: 40%
├── Operational Support (30% weight)
│   ├── Provider C: 70%
│   └── Provider D: 30%
└── Mission Alignment (20% weight)
    ├── Ally E: 50%
    └── Ally F: 50%

Global Recognition Calculated:
Partner A = 0.5 × 0.6 = 30%
Provider C = 0.3 × 0.7 = 21%
Ally E = 0.2 × 0.5 = 10%
...etc

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Core Derivations

Total Recognition (100%): Each participant has a fixed "budget" of recognition to distribute. This forces prioritization and trade-offs. Recognition is non-transferable and dynamically adjustable.

Mutual Recognition (MR): Calculated as the lower of the recognition percentages that two entities assign to each other. This creates perfect reciprocity in proportion. A one-sided relationship (where A recognizes B highly, but B recognizes A little) is valued at the lower amount, discouraging free-riding and encouraging mutual engagement and support.

When we recognize each other, we have mutual-recognition of mutual-value and can choose to allocate our capacities to each-other in precise proportion to how mutually-fulfilling we are to each other.

The system naturally promotes accurate recognition through mathematical necessity:

Entities define their goals/priorities subjectively, but achieving them depends on objective access to capacities and partnerships.

FOR ANY PARTICIPANT:

GIVEN:

• Total Recognition = 100%

• Capacities distributed ∝ (Mutual)-Recognition

• Goals require access to specific capacities/partnerships

THEN:

↑ Recognition allocated to non-beneficial partners

**∴ ∝ ↓ Recognition available for beneficial partners [budget constraint]**  

**∴ ↓ Mutual-Recognition with beneficial partners**  

**∴ ↓ Access to needed capacities [proportional allocation]**  

**∴ ↓ Goal Achievement**  

**∴ Natural incentive to correct recognition allocation**

Key Implication: The system creates natural incentives for accurate recognition. Inflating or misattributing recognition only decreases connection to beneficial partners and capacities. Entities that maintain accurate recognition patterns receive better-aligned capacities and achieve better outcomes.

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Resource Types

Mission-Aligned Values

Contributions toward organizational mission and values.

Key Property: No shared definitions required. Each entity determines what constitutes meaningful contribution to their goals.

Specific Resource Types

Concrete resources requiring common terminology:

• Funding

• Expertise

• Facilities

• Equipment

• Time

Key Property: Requires compatible specifications for matching.

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How Allocation Happens

Once all entities have published their data:

1. Filter for compatible resource specifications

2. Calculate mutual recognition between all pairs

3. Determine proportional shares based on recognition strength

4. Allocate resources (capped at declared needs)

5. Update remaining needs automatically

6. Recompute optimal allocation as network state changes (~100-200ms per update)

The entire process happens automatically. When state stabilizes, needs converge in O(log(1/ε)) rounds.

Recognition determines the split. Need size sets the cap. No meetings. No applications. No bureaucracy.

Next: The allocation algorithm →