LoopCost

LoopCost is a draft formula for comparing material or product transfer scenarios. It combines a stated base price with illustrative export and import penalties and a distance input. It is a lab model whose parameters and results require local validation; it does not guarantee locality, price, or cost outcomes.

Lab-only status. Lab-only: exploratory documentation and demo evidence; not a public deployment or compliance claim.

The formula

LoopCost is a computed value, not a standalone schema. It is calculated at routing time from three components:

Base price
An illustrative transfer-price input in a draft LoopCoin field, supplied by a lab scenario.
Export penalty
A configurable lab input that a scenario may derive from a draft LoopSignal value; the policy meaning and effect require local validation.
Import penalty
A configurable lab input that may model receiving-node preferences; it does not predict demand or route selection.
Distance cost
An illustrative per-kilometre input for lab scenarios; it may influence comparisons but does not ensure trade behaviour.

Why this matters

Local-first hypothesis
Lab scenarios can model zero intra-node penalties. Actual local prices, decisions, and environmental outcomes depend on node policy and real-world conditions.
Policy exploration
Lab examples can associate penalties with locally chosen draft signal values. They do not demonstrate democratic approval, governance outcomes, or community control.
Overflow hypothesis
Scenarios can compare how changing penalties might affect an overflow-style exchange. They do not establish surplus handling, demand, or cross-node movement.
Inspectable calculation
The draft formula makes scenario inputs reviewable. Inspectability alone does not establish fairness, correctness, or settlement outcomes.

Relationship to other concepts

LoopSignal feeds penalties

Lab scenarios may calculate illustrative penalties from draft LoopSignalConfig values for a material category.

LoopSignal →

LoopCoin scenario fields

A lab scenario may denominate a calculated value in a draft LoopCoin field; no settlement or clearing operation is demonstrated.

LoopCoin →

Spec reference

The formal LoopCost formula and penalty derivation rules are defined in SPECIFICATION.md §4.

Protocol spec →

Current status

Specification

LoopCost formula and penalty rules are defined in the protocol spec (§4).

Read the spec

Status

Computed in lab demo flows. No public pilots or deployments yet.

Register interest

Lab demo

Lab examples may include a calculated LoopCost value alongside draft match and transfer payloads.

Lab demo →