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PSC
A fourth capital class—alongside debt, equity, and grants—where capital cycles indefinitely through a networked pool, creating compound social value without liabilities or interest.
Perennial Social Capital (PSC) is capital deployed with zero interest, non-liability status, and soft repayability, where recovered principal is recycled indefinitely.Instead of a donated dollar being spent once, PSC beneficiaries return most of the capital to a shared regenerative pool when they are able. At an assumed 85% recycling rate over 30 cycles and a benefit coefficient of 1.7, $100,000 generates approximately 11.2× cumulative system value — against 1.7× for the same money as a one-shot grant. ⚠️ That is a model output under stated parameters: no realised recycling rate has been measured, here or anywhere.
1. Zero Interest
No cost of capital; repayments consist only of principal.
2. Non-Liability Status
Soft, mission-aligned obligations—not enforceable debt.
3. Perpetual Recycling
Returned principal re-enters the pool for redeployment.
4. Regenerative Structure
Social value compounds across cycles without capital depletion.
$100K spent once = 1.7× cumulative value. Capital depleted, requiring perpetual fundraising.
Creates balance sheet liabilities. Requires R ≥ 96% just to break even vs. grant benchmark.
Requires financial returns that often conflict with mission, leading to drift.
PSC is a fourth capital class: non-extractive, non-depletive capital that strengthens balance sheets while generating multi-cycle social value.
Capital deployed
Initial capital flows to the first beneficiary
Value created
Beneficiary uses capital to create value (education, housing, business)
Recycle to pool
When able, beneficiary returns 80-95% to the shared networked pool
Pool redeploys
Capital flows to new beneficiaries from the common pool (not bilateral)
System compounds
Corpus preserved indefinitely; SVM grows with each cycle
8.5–51×
System Value Multiplier (30yr)
11×
Modelled value at an assumed 85% over 30 cycles
80–95%
Assumed recycling rate — none has been measured
0%
Interest charged