What Is Value Capture?

Value capture reclaims a portion of the benefits generated by public systems—land, data, ecosystems, infrastructure—and redirects them toward collective well-being instead of private rent-seeking.

Regenerative Fuel: Powering Public Value Architecture

At the heart of Public Value Architecture lies a self-reinforcing, regenerative economic engine. Rather than a one-way flow from creation to extraction, this model captures, enriches, and recirculates value through continuous feedback loops—aligning incentives, replenishing commons, and growing public prosperity over time.

The Regenerative Cycle (Bird’s-Eye View)

          Value Creation
           (innovation, labor, data)
                   ⬇️
        Regenerative Capture
     (fees, dividends, levies)
                   ⬇️
       Collective Reinvestment
   (public services, infrastructure,
      ecosystem restoration)
                   ⬇️
     Enhanced Commons & Capacity
   (healthier people, stronger
       ecosystems, digital public goods)
                   ⬇️
     New Waves of Value Creation
  

Core Mechanics & Stages

1. Value Generation
   Individuals, firms, and communities contribute labor, creativity, data, and natural resources to produce goods and services.
2. Regenerative Capture
   A calibrated portion of that created value is reclaimed via:
   • Land-value taxes on unimproved land to curb speculation;
   • Data dividends paid back to contributors;
   • Carbon fees and biodiversity credits that internalize ecological costs;
   • Platform levies that fund digital public goods.
3. Collective Reinvestment
   Captured funds flow into:
   • Universal dividends and care-credits that secure basic livelihood;
   • Social Wealth and Innovation Funds that underwrite research, green infrastructure, and community enterprises;
   • Digital commons—open-source software, public data platforms, and mesh networks.
4. Commons Enhancement
   Reinvestment strengthens social, natural, and digital commons—improving health, bridging digital divides, and regenerating ecosystems, which in turn create new sources of value.
5. Positive Feedback Loop
   A richer commons seeds the next wave of innovation and participation, amplifying the cycle rather than depleting it.

Key Principles of Regenerative Economics

• Circularity — Value is continuously recycled, not consumed once.
• Nested Flows — Local, regional, national, and global loops interlock, each replenishing the other.
• Equity — Everyone shares in the upside, preventing concentration of returns.
• Ecological Integrity — Natural capital is replenished and respected as a partner, not just an input.
• Transparency — Public ledgers and scorecards track every capture and reinvestment.

Digging Deeper: Low-Level Workings

• Dynamic Rate-Setting
  Algorithms adjust fees (e.g. congestion, carbon) in real time to balance demand, curb negative externalities, and optimize the volume of captured value.
• Trust-Based Data Stewardship
  Community-governed data trusts negotiate API licenses and dividends, ensuring participants receive a share when their data drives commercial gain.
• Outcome-Tied Distribution
  Funds flow only once predefined social or ecological metrics are met—aligning incentives for impact rather than just disbursement.
• Automated Commons Reinvestment
  Smart contracts route captured levies into digital wallets or treasuries earmarked for specific public goods (e.g. urban greening, open-source R&D).

The Regenerative Value Loop

    Commons & Infrastructure
              ⬇️
      Private Use & Creation
              ⬇️
       Capture Mechanisms
      (fees, levies, licenses)
              ⬇️
      Public Distribution
(dividends, services, reinvestment)
              ⬇️
    Strengthened Commons & Next Cycle
    

Capture Mechanisms

• Automation & Robotics Levies: Precise rates (e.g. €X per robot-hour), SME carve-outs, anti-offshoring safeguards, aligned transfer-pricing rules.
• Land & Location: land-value taxes, congestion fees, development levies.
• Digital & Data: platform usage fees, data dividends (% of revenue), API licenses.
• Ecological: carbon fees (€ per ton CO₂), biodiversity credits, resource royalties.
• Financial: transaction levies, wealth alignment, anti-speculation tools.
• Commons Licensing: use-rights for public infrastructure, open-access IP, shared datasets.

Distribution Mechanisms

• Universal Dividends & Participation Credits: Baseline per-capita UBI + tokenized credits for caregiving, volunteering, creativity, ecosystem stewardship—automated via smart contracts.
• Social Wealth Funds & Public Procurement: Citizen-governed funds take minority stakes in AI, clean-tech, platform firms; outcome-based contracts for housing, health, transit; mandatory reinvestment of returns.
• Public Services & Commons Reinvestment: health, housing, transit, education, digital public goods, green infrastructure.

Implementation Specifications

Key Formulas & Safeguards

Mechanism	Formula / Rate	Safeguards & Carve-Outs
Robot-Hour Tax	€20 / robot-hour	SME discount (50%), no offshoring credits
Data Dividend	5% of gross data revenue	Cap on small-business data use
Carbon Fee	€30 / ton CO₂	Gradual ramp over 5 years; frontier offsets
Land-Value Tax	2% of unimproved land value	First €100k exempt; rural leniency schedule
Participation Credits	€10 / volunteer-hour; tokenized	Max 200 credits / year

Multi-Level Capture & Distribution

Value Flows from Local to Global

Scale	Capture Example	Distribution Example
Local	Parking & congestion fees	Neighborhood dividends, public parks
Regional	Data-platform levies	Regional UBI pilots, transit subsidies
National	Carbon & land-value taxes	Basic income, universal healthcare
Global	Digital service taxes, IP fees	Climate finance, cross-border dividends

Principles for Ethical Capture

• Proportionality: aligned with benefit received
• Transparency: public ledgers & open reporting
• Non-Extractiveness: no rent-seeking intermediaries
• Intergenerational Equity: safeguard future commons
• Pluralism: recognize monetary and non-monetary value

Glossary of Terms

Carbon Pricing

A fee on greenhouse gas emissions to reflect ecological cost.

Commons Reinvestment

Redirecting public value into shared infrastructure and ecosystems.

Data Dividend

A payment reflecting the use of individuals’ data in profit-generating systems.

Land-Value Tax

A tax on the unimproved value of land to encourage productive use and reduce speculation.

Regenerative Capture

A mechanism for reclaiming value to fund future collective prosperity.

Smart-Contract Reinvestment

Using automated code to route funds directly into public-good treasuries.

Social Wealth Fund

Publicly owned investment fund channeling returns into dividends or services.

Universal Dividend

Unconditional public payment that shares in the value created by the commons.