Regenerative Compounding Formula

Definition

The core equation governing regenerative capital growth: capital at cycle n+1 equals capital at cycle n times the recycling rate plus the capability return. This formula shows how R and γ combine for exponential system value.

Formula

C_{n+1} = C_n × R + (γ - 1) × C_0

Example

Starting with $100K (C_0), R = 0.85, γ = 1.5: after cycle 1, capital = $100K × 0.85 + $50K = $135K. The system grows despite 15% not recycling.

Source

REA Section 4.1

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Related Terms from Regenerative Economic Architecture

Regenerative Economic Architecture (REA)

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

Recycling Rate (REA)R

Capability Return (REA)γ (gamma)

Capital Phase Space

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Regenerative Economic Architecture