Free Association

Free Association: A Digital Public Infrastructure for Resource Coordination

Free Association is a mathematically-proven coordination infrastructure that enables organizations, communities, and individuals to allocate resources efficiently based on mutual recognition of contributions—without centralized control, bureaucratic overhead, or market exclusion.

The Core Problem: Traditional resource coordination relies on markets (which exclude those without purchasing power), charity (which creates dependency), or bureaucracy (which is slow and inflexible). None of these mechanisms are adequate for the speed and scale of challenges we face—from climate adaptation to humanitarian response.

The Solution: A fourth type of economic relationship based on mutual recognition—where entities acknowledge each other's contributions toward shared goals and allocate resources accordingly. This creates a self-organizing coordination system that is:

• Fast: Allocations converge in seconds, not months

• Fair: Mathematically guaranteed proportional distribution

• Efficient: Resources flow directly based on declared needs and mutual recognition

• Decentralized: No central authority controls outcomes or data

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How the System Works

The infrastructure operates on three simple data points published by each participant:

1. Recognition Weights - Who contributes to your organizational goals?

• Each entity allocates 100% of recognition among contributors

• Non-transferable and dynamically adjustable as relationships evolve

• Recognition can reflect contributions to direct operations or broader mission-aligned values

• Organized as a contribution tree tracking different types of support

2. Available Capacity - What resources can you offer?

• Declare surplus resources (funds, expertise, facilities, time)

• Specify filters (time windows, locations, resource types)

• Update dynamically as circumstances change

3. Declared Needs - What resources do you require?

• State specific resource requirements

• Update in real-time as needs evolve

• System caps allocations at actual declared needs (preventing accumulation)

4. Mutual Recognition - Bidirectional acknowledgment of contributions

• Calculated as the minimum of reciprocal recognition percentages

• Example: If Organization A recognizes B at 50% and B recognizes A at 10%, their mutual recognition is 10%

• Taking the minimum ensures proportional reciprocity

• Self-recognition is valid for time-shifting resources within your own organization

5. Contribution Trees - Structured tracking of contribution types

• Each branch represents a category (program areas, operational support, etc.)

• Points distributed among contributors within each branch

• Global recognition calculated from weighted contributions across all branches

• Enables granular tracking while maintaining overall coherence

Resource Types:

• Mission-aligned values: Contributions toward organizational mission and values (no shared definitions required)

• Specific resource types: Concrete resources requiring common terminology (funding, expertise, facilities)

• System handles both intangible mission contributions and tangible resource coordination

The Allocation Algorithm

Two-Tier Priority System:

Tier 1 - Mutual Recognition Priority: Entities with mutual recognition receive first priority based on:

• Strength of mutual recognition

• Declared resource needs

• Compatible resource specifications (time, location, type)

Tier 2 - Unilateral Recognition: Remaining capacity flows to entities you recognize (even without mutual recognition)

• Enables support for new partners building recognition networks

• Maintains incentives for genuine contribution

Allocation Process:

1. Filter for compatible resource specifications

2. Calculate proportional shares based on mutual recognition

3. Recognition determines the split; need size sets the cap

4. Allocations capped at declared needs (no accumulation beyond stated requirements)

Dynamic Updates:

• Remaining need = max(0, Declared Need - Total Received)

• Adaptive damping prevents allocation oscillation

• Each resource type tracks independently

• System converges to stable equilibrium in 5-10 calculation rounds

Mathematical Foundations

The system's fairness and efficiency are guaranteed by these formal properties:

Recognition Distribution:
- Total Recognition per Entity = 100%
- Recognition allocated among contributors as percentages

Mutual Recognition Calculation:
MR(Entity_A, Entity_B) = min(
    Recognition_A_gives_B,
    Recognition_B_gives_A
)

Proportional Share Calculation:
Share(Recipient, Provider) = 
    MR(Recipient, Provider) / Σ MR(Provider, All_Compatible_Recipients)

Active Need (with oscillation prevention):
Active_Need = Declared_Need × Damping_Factor
    where Damping_Factor ∈ {0.5, 0.8, 1.0}

Raw Allocation:
Raw_Allocation(Recipient, Provider) = 
    Provider_Capacity × Share(Recipient, Provider)

Final Allocation (capped at need):
Final_Allocation(Recipient, Provider) = min(
    Raw_Allocation(Recipient, Provider),
    Declared_Need(Recipient)
)

Need Update (next cycle):
Remaining_Need = max(0, Declared_Need - Total_Received)

Key Properties:

• Strategy-proof: Honest reporting is the optimal strategy

• Proportional fairness: Allocations strictly proportional to mutual recognition

• Fast convergence: System reaches stable equilibrium in 5-10 rounds

• Non-accumulative: No entity receives more than declared needs