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2. The Accounting Shift: From Assets to Trust

Traditional finance begins with Assets − Liabilities = Equity. CPP reframes this for a commitment economy:

  • Credit Access: How much the network is still willing to accept from you.
  • Outstanding Commitments (Debt): Your unfulfilled promises held by others.
  • Backing Capacity: Your real ability to honor those promises.

Commitment–Capacity Identity: Credit − Debt = Backing Capacity

This identity governs risk, limits, and safety across pools: unlimited issuance does not imply unlimited power - only accepted commitments matter.

Example: A transporter issues “100 rides” in vouchers. The network only accepts 40 rides worth at a time (credit access). If 15 rides are currently outstanding (debt), then backing capacity = 40 − 15 = 25 rides worth of additional safe acceptance.