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Three of the most exciting projects to come out of EA in recent years are, in a vague sense, CEA spinouts:
* Kairos is directly a spinout of CEA and now handles most support for university AI safety groups. Basically everyone I've found who knows them is really excited about what they do
* NEST is an opinionated ideas-fi...
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My Notes on Certificates of Impact
Introduction & purpose of post
This post contains some notes that I wrote after ~ 1 week of reading about Certificates of Impact as part of my work as a Research Scholar at the Future of Humanity Institute, and a bit of time after that thinking and talking about the idea here and there.
In this post, I
I’m sharing this here in case it’s useful - the intended audience is people who are curious about what Certificates of Impact are, and (to some extent) people who are thinking seriously about Certificates of Impact.
Note that, since I haven’t invested much time thinking about Certificates of Impact, my understanding of this area is fairly shallow. I’ve tried to include appropriate caveats in the text to reflect this, but I might not have always succeeded, so please bear this in mind.
What Certificates of Impact are
Within this document, I’m using Certificates of Impact to refer to the general idea about creating a market in altruistic impact. I think that the general idea is also referred to as Impact Certificates, Tradeable Altruistic Impact, and Impact Purchases.
Certificates of Impact is an idea that's been floating around in the Effective Altruism community for some time. Paul Christiano and Katja Grace ran an experiment with Certificates of Impact about 5 years ago. I've seen various EA forum posts about Certificates of Impact too (see the final section of this post for some links).
By a market in altruistic impact, I mean something like the following: we imagine a future where there are people who want to donate to charity, and there are people who are doing high impact projects, and rather than them making the effort to seek each other out, they connect through this market. In the market, the individuals or organisations doing the projects issue Certificates of Impact, and donors buy them. And maybe as a donor you don't need to try so hard to find the best project, you just buy some certificates from some marketplace; and as someone doing a high impact project, you don't have to work so hard to connect to donors, because you find that there are profit seeking organisations that are willing to buy your certificates, and that's your source of funding.
Note both that the above is quite vague, and also there are probably some aspects you could change and still have something that could fall under Certificates of Impact.
A semi-concrete proposal
There are lots of varieties of Certificates of Impact-type systems that could be tried. To make things easier, from now on in this document I’ll assess a concrete proposal called Certificates of Impact with Dedication (idea due to Owen Cotton-Barratt):
A market is created / exists where someone can issue a Certificate for work they believe to be altruistically impactful. We call this person the Issuer. There is a statute of limitations on issuing Certificates of two years (i.e. Certificates can’t be issued for work more than two years old). The Certificate is assessed by a Validator who confirms that the work specified on the Certificate has in fact been done. The Issuer then sells the Certificate in the market, maybe via an auction mechanism. Note that the Certificate can refer to some percentage of the project, so for example it might represent 40% of the altruistic impact of a project, while the Issuer keeps the other 60%. The Certificate is traded on the secondary market by professional traders and then bought by an Ultimate Buyer who is the ultimate consumer of the Certificate. The Ultimate Buyer then Dedicates the Certificate, possibly to themselves so that they get the credit for the altruistic impact.
Whoever the certificate gets Dedicated to is the one who gets the credit for the counterfactual altruistic impact of the project that the certificate refers to. And once a certificate has been Dedicated it can't be traded anymore, so Dedication is its end point. Importantly (in my view), if you don't have a Dedication mechanism it's not clear whether people who own Certificates of Impact have bought them so that they can resell them at a profit, or because they want to have altruistic impact.
Brainstorm-style lists of ways Certificates of Impact might go well or badly
In this section, I list ways Certificates of Impact might go well or badly, or why it might or might not work. Generally, I’ve tried to err on the side of including things even where I consider them to be very speculative.
Note that my opinions, where I give them, are pretty unstable: I can easily imagine myself changing my mind on reflection or after seeing new arguments.
How good might this be?
Let’s imagine that a well-functioning Certificates of Impact with Dedication system exists with a large number of active participants including profit-seeking intermediaries. I list the ways this could be good below.
Here is a summary of the possible benefits. For each one, I’ve put my opinion regarding how likely it is in brackets.
Here’s more detail
How feasible is this?
I list below considerations for thinking about how feasible it is to get to a state where this is big and being used by lots of people (whether it is actually achieving the desired outcomes of improved efficiency etc or not).
How bad might this be?
I list below the ways a large (but maybe not well-functioning) market in Certificates of Impact with Dedication could fail to have a positive impact, or even be net negative.
Here is a summary of the possible issues / harms. For each one, I’ve put my opinion regarding how likely it is and/or how bad it might be in brackets.
Here’s more detail
Other thoughts
Relevant resources
FWIW I think you should make this a top level post.
Kind of surprised that this post doesn't link at all to Paul's post on altruistic equity: https://forum.effectivealtruism.org/posts/r7vmtHZKuosJZ3Xq5/altruistic-equity-allocation