equations.md (917B)
1 # Value Equation 2 3 As far as we know, the idea and name for value equations was invented by [Sensorica](http://www.sensorica.co/), a pioneering Open Value Network. 4 5 The idea is to have a published formula for distributing income to contributors to creating some deliverable that brings in some money. 6 7 This is a (simplified) very specific example taken from Sensorica: 8 9 Contributing to creating the output: 10 11 ![sensorica flow 1](https://raw.githubusercontent.com/valueflows/valueflows/master/release-doc-in-process/sens-flow-1.png) 12 13 Distributing income according to the value equation: 14 ![sensorica flow 2](https://raw.githubusercontent.com/valueflows/valueflows/master/release-doc-in-process/sens-flow-2.png) 15 16 Here's [a lot more detail about value equations](https://speakerdeck.com/mikorizal/10-nrp-value-equation-concepts-and-tutorial) as implemented in Sensorica's NRP software, one of the precursors to Value Flows.