Pool, Cap & Mutualize

How do we distribute finite resources in complex contexts?

Pool, Cap & Mutualize source

Things that get used up cannot be made available indefinitely to everyone. A sustainable distribution practice that partially links “giving” and “taking” (but doesn’t de-couple them) must combine the following three elements: pooling what is available, capping how much of it can be used and apportioning it in a spirit of solidarity. This means that everyone who can must contribute. What they receive, however, is not linked to the size of their contribution.

# Examples - Local exchange trading systems , especially when the exchange is freely negotiated and not tied to set amounts. - Social security systems to which people contribute over their lives, based on income, but whose later benefits are not precisely correlate with what they paid in. - Community-supported health insurance providers such as Artabana and Solidago , which which pool participant contributions but mutualize payouts are based on individual need.