Layer 2: Temporal Smoothing

Definition

The second functional layer providing patient capital that matches deployment timelines to mission requirements. Temporal smoothing eliminates the mismatch between short-term capital expectations and long-term social impact creation.

Formula

Example

Infrastructure requiring 20-year payback funded with 20-year patient capital has τ_smooth = 1.0 (perfect smoothing). The same project with 5-year commercial loans has τ_smooth = 0.25 (severe temporal mismatch).

Source

UACC Section 2.2