# Full Text: Biofirm Development with First Principles First and the Active Inference Institute at the Applied Active Inference Symposium 2024 > Extracted from `BIOFIBIOFIRM_v2.pptx` --- ## Slide 1 ACTIVE INFERENCE BIOFIRM HOMEOSTATIC AGENTS FOR BIOREGIONAL & REGENERATIVE FINANCE ACTIVE INFERENCE INSTITUTE FIRST PRINCIPLES FIRST NOVEMBER 14, 2024 ## Slide 2 WHAT IS NEEDED FOR A NEW SCIENCE-BASED ECONOMY BASED UPON ENHANCING LIFE, NATURE AND EQUALITY? ## Slide 3 WHAT IS NOT NEEDED Commodification of Nature and People Total Fungibility of All Asset Classes Unbounded Concentration : Wealth, information, and power Maximization of Private Utility Extractive Value Metrics : With negative externalities Zero-Sum, Winner-Takes-All Incentives Lack of Transparency, Accountability, and Collective Purpose ## Slide 4 WHAT IS NEEDED - BIOMIMETIC FIRMS AND ECONOMY No Negative Externalities Non-Zero-Sum Incentives Value Recognition : Aligned with biocapacity, diversity, and resilience Agency : Empowering nature, species, and people Homeostatic Fungibility : Among various asset types Scale & Domain-Free Metrics : Scientific and adaptable Transparency, Explainability, Accountability Scalable Learning and Adaptation : Automatable processes Decentralized Governance : Nested and autonomous systems ## Slide 5 ALIGNMENT WITH ELINOR OSTROM’S WORK ON GOVERNANCE OF THE COMMONS CLEARLY DEFINED BOUNDARIES Rights to withdraw resources and the boundaries of the Common Pool Resource (CPR) must be clearly specified. CONGRUENCE WITH LOCAL CONDITIONS Appropriation rules, including time, place, technology, and quantity, align with local labor, materials, and economic factors. COLLECTIVE-CHOICE ARRANGEMENTS Individuals impacted by operational rules can actively participate in modifying those rules. MONITORING Monitors who audit CPR conditions and user behavior are accountable to or are the appropriators themselves. GRADUATED SANCTIONS Violators of operational rules face sanctions proportional to the severity and context of the offense, imposed by peers or accountable officials. CONFLICT-RESOLUTION MECHANISMS Appropriators and officials have access to low-cost, local venues for resolving conflicts efficiently. RECOGNITION OF ORGANIZATIONAL RIGHTS Appropriators' rights to create institutions are respected and not challenged by external authorities. NESTED ENTERPRISES For larger systems, activities such as appropriation, monitoring, enforcement, and governance are managed through multiple layers of nested organizations ## Slide 6 OSTROM’S SOCIAL-ECOLOGICAL SYSTEM A coherent system of biophysical and social factors that regularly interact in a resilient, sustained manner Defined across multiple spatial, temporal, and organizational scales, often hierarchically linked Comprises critical resources (natural, socio-economic, cultural) regulated by interconnected ecological and social systems A dynamic, complex system characterized by continuous adaptation ## Slide 7 TEHANU – GIVING AGENCY AND VALUE TO NATURE AND SPECIES “Animals, trees, and countless other species are essential to the global economy. Our world cannot truly prosper if only humans benefit from its resources. We build infrastructure that supports a circular flow of money and data between humans and other species, ensuring mutual flourishing. Tehanu exists with the belief that for these species to thrive, they must actively participate in our economy.” ## Slide 8 GIVING AGENCY TO NATURE: REGEN NETWORKS AND ECOLOGICAL INSTITUTIONS ## Slide 9 BIOREGIONAL HUB STRATEGY VISION AND PRINCIPLES Align with living systems principles and Indigenous wisdom Serve the Bioregional Regeneration Strategy realization Emphasize inclusive, participatory governance representing the bioregion CORE COMMITMENTS Address power imbalances; ensure transparency and empowered participation Treat growth and returns as a means, not an end STRATEGIC APPROACHES Leverage an integrated capital structure for organizing, weaving, and activation Raise funds from purpose-aligned investors and funders KEY ACTIONS Provide aggregation and matchmaking services Implement an integrated approach to sensing and MRV (Monitoring, Reporting, and Verification) Invest in impactful storytelling ## Slide 10 BIOMFIRM MEETS BIOFI OPERATIONAL AND ASPIRATIONAL CRITERIA First Principle- based grounded in the scientific method & Bayesian Statistics-Markov blanket Computationally tractable scale and domain-free metrics for sensing MRVs Open-source kernel of biofirm – based upon homeostatic –biomimetic principles of self-organization, self-healing, self-modeling, nested alignment around shared goals and outcomes Highly automated functions and competencies through learning interfacing with LLMs Scalable through secure edge networks to enable value exchange among diverse biofirms Poly-centric governance and “nested enterprise” through shared outcomes & telos Cooperative incentives and value allocation – FEP & Shapley Value Autonomous and decentralized governance and value recognition and allocation. Gives agency to Nature, species and individuals to Intrinsic governance and security by initial design and telos. Principled means on interfacing biomimetic economy with current Fiat economy Provides a principled basis for valuing ” nature- based “currencies and assets ## Slide 11 LET’S MAKE IT REAL john@fp1.ai www.fp1.ai --- *Extraction method: pptx_xml*