📊 Theoretical Value

Theoretical Value is the value that would be realized if effort accumulated without loss across time, agents, and iterations.

Graph showing Theoretical Value as a linear 1:1 conversion of effort to value.
Theoretical Value (TV = X = Y) represents the upper bound of value generation under perfect continuity.

The Relationship

Actual Value (AV) = Theoretical Value (TV) − Reconstruction Cost (RC)

Invisible Opportunity Cost is the "grey area" between what could have been created and what actually remains after paying the tax of fragmentation.

System Role in PKOS

PKOS defines the target state: moving systems closer to their Theoretical Value by minimizing loss. It shifts the metric from "how much is produced" to "how much of what is produced persists and compounds."

Value is not created at the moment of output—it is realized when effort survives long enough to compound.

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