Automatic Compensation System in Infocracy: Revolutionizing How We Think About Income

8 min readMar 28, 2025

In a world where the nature of work is changing and the boundaries between employment, entrepreneurship, and creativity are blurring, we need a new approach to compensation. The Automatic Compensation System in Infocracy offers precisely such a solution — revolutionary, fair, and adapted to the realities of the modern world.

What is the Automatic Compensation System?

Imagine a world where every constructive contribution you make to society generates a steady stream of income — from ideas and knowledge shared to tools provided. This system works like an automated royalty mechanism, where a single activity can generate revenue for years to come.

In the traditional economy, most of us have one main source of income — a job, our own business, or a contract. In Infocracy, every citizen can have dozens or even hundreds of small but constant income streams resulting from their previous activities and contributions to society’s development.

How Does It Work in Practice? The Example of John Kowalski

Let’s meet John Kowalski, a carpenter with 20 years of experience. In the traditional system, John only earns money when he fulfills furniture orders. In the infocratic system, his income looks completely different.

John makes furniture in a Production Hall, using the machines available there. For each piece of furniture, he receives about 80% of its value — this is his primary income from work. But that’s just the beginning.

Three years ago, John developed an innovative system for joining wooden elements without using nails or glue. He shared his idea as an Infocratic Patent in the Knowledge Tree. Now, whenever anyone in the world uses this method, John automatically receives a small fee — say 0.1% of the product’s value. With thousands of carpenters using his solution worldwide, this creates a significant, steady stream of income.

John also noticed that the Production Hall lacked a specialized planer. He built one and made it available to all Hall users. Every time someone uses this machine, the system automatically transfers a small portion of the profit from the manufactured product to John — say 0.2%.

Seeing potential in young carpenters, John also conducts workshops, passing on his skills. The system records whom he taught and which specific techniques. When his students use these skills in their work, John receives a micropayment — say 0.3% from each product, but only when they used exactly the skills he taught them.

John is also active in his local community. When he proposed improving traffic organization on his street, and the idea was accepted in a vote and implemented, the system awarded him a small share of the savings generated by this solution for the next 3 years.

To summarize, John’s income consists of:

80% of the value of furniture he personally makes
Micropayments from each use of his Infocratic Patent
Micropayments from each use of the machine he built
Micropayments from products made by his students
A share in the benefits from his community-implemented idea

With each year, these additional income streams grow, creating an increasingly financially stable situation.

Key Participants in the Automatic Compensation System

1. Innovators and Creators of Infocratic Patents

These are people who create and share innovations, discoveries, and technical solutions in the Knowledge Tree. Unlike the traditional patent system, where the patent owner can forbid others from using their solution, in Infocracy, anyone can use an Infocratic Patent, but the creator automatically receives a micropayment for each application.

Example: Maria developed a new water purification method. Instead of starting a company and implementing her idea herself, she added it to the Knowledge Tree as an Infocratic Patent. Now, whenever any water treatment plant in the world uses her method, Maria automatically receives a small portion of the profits — say 0.5% each time. With global application, even such a small percentage creates significant income.

2. Teachers and Mentors

People who transfer knowledge and skills to others are rewarded by the system, receiving a portion of the profits from each product made by their students, but only when they used the skills passed on to them.

Example: Professor Nowak is an expert in quantum physics. He conducts lectures and workshops, passing his knowledge to students. When his former student, now working in a Laboratory Hall, uses this knowledge to create a new measuring device, Professor Nowak automatically receives a small portion of the profits from each device produced — say 0.3%. Interestingly, he receives this fee only from devices that actually use the specific aspects of quantum physics he taught.

3. Infrastructure Providers

People who create and share machines, tools, or production spaces receive automatic micropayments from each product made with their help.

Example: Andrew is an engineer who designed and built an advanced 3D printer. Instead of producing and selling copies of his device, he made it available in the local Production Hall. Now, whenever anyone uses his printer to create a product, Andrew automatically receives a small portion of the profit — say 0.4%. With intensive use of the printer by many contractors, this creates a steady, significant stream of income.

4. Participants in Decision-Making Processes

People actively participating in social decision-making that leads to the implementation of beneficial solutions receive a share in the generated profits or savings.

Example: A group of residents, including Caroline, proposed a new waste management system in their district. After implementation, the system turned out to generate significant savings. Part of these savings is automatically divided among all who supported this solution, proportional to the weight of their vote (dependent on their knowledge level in IPI). As an expert in waste management, Caroline’s vote had a high weight, which translates into a higher share in the savings for the next 3 years.

Retirement in the Automatic Compensation System

One of the most revolutionary features of the system is how it transforms the concept of retirement. In the traditional pension system, we work for several decades, paying contributions that are supposed to provide us with income in old age. The system is based on redistribution — the younger generation finances the pensions of the older one.

In Infocracy, the concept of retirement undergoes a fundamental change. Instead of saving for old age, you build a network of connections generating micropayments throughout your life:

Example: Let’s return to John Kowalski from our first example. When John reaches the age of 65, he decides to limit his personal furniture production. However, his income doesn’t drop dramatically because over the years he has built an extensive network of micropayment sources:

His Infocratic Patent for the wood joining system is used by carpenters worldwide, generating steady income.
The machines he built and shared in Production Halls are still being used, bringing him regular micropayments.
Dozens of carpenters he trained over the years still use the skills he passed on, generating income for him.
Solutions he proposed that were implemented by the community still bring him a share in the savings.

All these income streams create a natural “retirement” — income that flows regardless of whether John is actively working. Moreover, the more John shared his knowledge, skills, and ideas throughout his life, the greater his retirement income.

This system creates natural justice — people who made the greatest contribution to society’s development automatically receive the largest “pensions” in the form of the sum of all micropayments.

Comprehensive Example: Production of an Innovative Piece of Furniture

Let’s see how the system works in practice with the example of producing an innovative ergonomic chair:

Order: A customer orders a chair through the Infornation Portal.
Contractor: The “Precision” Carpentry run by Martha undertakes the realization. Martha will receive about 80% of the chair’s price as basic compensation for her work.
Infocratic Patent: The chair design is based on an Infocratic Patent created by Thomas. The system automatically transfers to him 5% of the 20% pool allocated to all co-creators (i.e., 1% of the total price).
Machines Used: For production, Martha uses a specialized milling machine shared in the Production Hall by Adam and a laser measurement system created by Joanna. Adam and Joanna automatically receive 3% and 4% of the co-creators’ pool respectively (0.6% and 0.8% of the total price).
Materials: Wood and fabrics are available in the Production Hall’s resources, which were previously ordered and are constantly maintained in stock. Martha doesn’t have to invest her own money in raw materials before starting work — she uses the Hall’s resources. The cost of materials used will be automatically deducted from her compensation after the chair is sold. This is a key feature of the system — the contractor doesn’t need their own capital to start production.
Skills Transferred: Martha uses upholstery techniques taught to her by Master Stefan. The system automatically identifies this and awards Stefan 2% of the co-creators’ pool (0.4% of the total price).
Improvements: Two years ago, Martha added an improvement to the adjustment mechanism to Thomas’s original patent. For this, she receives an additional 1% of the co-creators’ pool (0.2% of the total price).
Production Hall: A small part — 1% of the co-creators’ pool (0.2% of the total price) — goes to the Production Hall for its maintenance and development.

This entire complex process of profit sharing happens automatically, without the need to sign contracts or negotiate. The system itself identifies all process participants and allocates them the appropriate portion of profits.

Advantages of the Automatic Compensation System

Fair Profit Distribution — everyone who contributed to the product’s creation receives a proportional share of the profits.
Motivation to Share Knowledge — the more knowledge and skills you pass on to others, the more income you generate.
Incentive for Innovation — every idea, patent, or improvement can become a source of steady income.
Natural Pensions — your contribution to society’s development automatically creates a network of micropayments that act as a pension system.
Elimination of Bureaucracy — there’s no need to submit applications for royalties or licenses — the system automatically identifies each person’s contribution.
Distribution Instead of Wealth Concentration — instead of concentrating profits in the hands of capital owners, the system distributes them among all who contributed to creating value.

Summary

The Automatic Compensation System in Infocracy represents a fundamental change in thinking about work, compensation, and retirement. Instead of one main source of income, we build a network of micropayments that flow to us every time our knowledge, skills, or innovations are used by others.

This system naturally promotes knowledge sharing, collaboration, and innovation. It eliminates the artificial division between the work period and retirement, creating a smooth transition where professional activity can be gradually reduced while income from micropayments maintains financial stability.

It’s a vision of an economy where every constructive contribution is appreciated and rewarded, and the most valuable capital becomes knowledge, skills, and the ability to create solutions serving the entire society.