Recycling Rate (REA)

Definition

The fraction of deployed capital that returns to the system for redeployment. The regenerative threshold is R ≥ 0.8; below this, capital depletes faster than it regenerates.

Formula

C_{n+1} = C_n × R + γ_n

Example

An education PSC with R = 0.85 means 85% of deployed capital returns through graduate contributions. Over 30 cycles, this creates 26× more value than a single grant deployment.

Source

REA Section 3.1

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Related Terms from Regenerative Economic Architecture

Regenerative Economic Architecture (REA)

Four Structural Invariants (REA)R, γ, Δ, Λ

Capability Return (REA)γ (gamma)

Regenerative Compounding Formula

Capital Phase Space

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Regenerative Economic Architecture