Yurii Ratushyn, Serhii Polenok
GEOECONOMICS OF THE DIGITAL SOCIETY:
Models, Rights, and Global Security

Summary
CONTENTS
INTRODUCTION
· From the Authors: Geo-economics as the next stage in the evolution of digital
civilization.
· Glossary.
· From Geopolitical Conflicts to Geo-economic Interaction.
· The Digital Society as a New Form of Economic Order.
· The Digital Institutional Platform (DIP) and Digital Polycentric Institutes
(DPI) — the foundation of the new economic architecture.
· Mission of the Book: to end perpetual wars and to formulate the principles of
digital stability, profit, and peace.
CHAPTER I. FOUNDATIONS OF THE GEO-ECONOMY OF THE DIGITAL SOCIETY
Mathematical
Model 1:
Model of Neurovalue Productivity (NVP)
NVP = f(Ei, Is, Ap, Ct)
CHAPTER II. METHODS OF ECONOMIC MANAGEMENT IN THE DIGITAL SOCIETY
Mathematical
Model 2:
NeuroValue Flow Model
dV/dt = α × E + β × I − γ × L
CHAPTER III. ECONOMIC STABILITY AND RESILIENCE OF THE DIGITAL SYSTEM
Mathematical
Model 3:
Digital Stability Equation
S = k₁ × (F − R)² + k₂ × (J − E)²
→ minimum
CHAPTER IV. MATHEMATICAL MODELS OF THE GEOECONOMICS OF THE DIGITAL SOCIETY
CHAPTER V. PROFIT, PROFITABILITY, AND NEW FINANCIAL SYSTEMS
Mathematical
Model 5:
Profitability Model of a Polycentric Economy
Rp = (Σ_i (V_i × C_i)) / (T + M)
CHAPTER VI. TAXATION, TARIFFS, PREFERENCES, IMMUNITIES, AND GUARANTEES
Mathematical
Model 6:
Digital Institutional Platform Fiscal Model (Digital Fiscal Neutrality)
T_nat = f(D, V_r, P_l)
CHAPTER VII. LAW OF THE DIGITAL SOCIETY
CHAPTER VIII. GLOBAL SECURITY AND INSTITUTIONAL STABILITY
Mathematical
Model 8:
Institutional Model of Global Stability
B = ∫₀ᵀ (S_i × C_p − R_c) dt → max
CHAPTER IX. GEOECONOMIC STRATEGIES FOR SUSTAINABLE DEVELOPMENT
Mathematical
Model 9:
World Balance Model
Gs = ∑₁ⁿ (P_i − C_i) − D_geo → 0
CHAPTER X. PASSIVE INCOME AND ECONOMIC DISTRIBUTION IN THE DIGITAL SOCIETY
Personal
Data as a Digital Person’s Asset
Digital persons generate value through their personal data.
The sovereignty of the digital person guarantees the right to control and
monetize data via polycentric institutes.
Passive
Income Mechanisms and Digital Contracts
Passive income is formed in the form of digital currency or cross-signals.
Polycentric digital contracts ensure automatic income accrual without
intermediaries.
Integration with decentralized financial platforms (DeFi) allows profit from
staking, liquidity provision, and other financial instruments.
Rewards
for Participation in Subplatforms and Joint Projects
Digital persons receive income for activity in neuroprojects, crowdfunding
platforms, digital labor platforms, and collective investment projects.
Use of gamification and rating systems stimulates active participation and
enhances social capital.
Global
Digital Dividends and Fair Profit Distribution
The share of digital persons in global digital income is determined by
participation in international subplatforms and DIP ecosystems.
Profits from advertising, services, and technologies are distributed fairly
according to principles of economic equality.
Principles
of Sustainability and Development of the Digital Economy
Social passive income is an inalienable right of a sovereign digital person,
regardless of nationality or place of residence.
Development of DIP technologies (neurochains, digital contracts, security)
ensures the stability and growth of the digital economy.
Regulation is carried out through distributed financial subplatforms, ensuring
equal access to income, active participation, and ethical legitimacy.
CHAPTER XI. CIVIC PASSIVE INCOME (CPI)
CONCLUSIONS
Abstract
The book Geo-Economics of the Digital Society: Models, Law, and Global Security explores contemporary challenges and opportunities in the interaction of economic, technological, and geopolitical processes in the digital era. It offers a systemic analysis of the development of the digital economy, polycentric institutions, digital law, and global security mechanisms, emphasizing the interconnection between economic activity, resource management, and strategic stability.
The book was developed based on a knowledge base created by the authors in the ChatGPT environment at https://chatgpt.com/c/6871f69c-08f4-8010-9f05-0596e998eb5f, which allowed integration of the most up-to-date analytical data, conceptual models, international practices, and a priori approaches in the fields of digital society, geo-economics, and global security.
Individual chapters are dedicated to:
· Models of digital economy dynamics and crisis scenarios;
· Legal mechanisms of the digital society and digital property;
· Management of sustainable development and climate adaptation projects;
· Issues of taxation, tariffs, preferences, guarantees, and immunities in digital and infrastructure projects of the Hub prior to their transfer to state authorities.
The publication is intended for researchers and practitioners in the fields of geo-economics, international relations, digital and infrastructure project management, as well as a broad audience interested in the future of digital civilization and global economic interaction.
The book in the reader’s hands continues and logically develops the ideas presented in Geopolitics of the Digital Society, which laid the philosophical and civilizational foundation for a new world order based on the principles of freedom, equality, and justice. While the geopolitics of the digital society addresses the question of how humanity can achieve peace through rethinking the structure of power and security, the geo-economics of the digital society demonstrates how this world can be sustained by reproducing stability through a new logic of economic activity.
The current era, transitioning from industrialism to a digital neuro-institutional system, is shaping not only a new technological but also a new socio-economic architecture. At its center is the digital person — an autonomous carrier of value, rights, and responsibilities, integrated into the Digital Institutional Platform (DIP) and polycentric institutions (PCIs). In this system, economic action ceases to be merely an exchange of resources — it becomes a replication of energy, information, and trust, forming neurovalue as a new form of capital.
We are entering an age in which the economy transforms into a system of mutual reinforcement among digital actors rather than a field of competition over scarce resources. This is the key to stability — the transition from market struggle to neuroeconomic cooperation, from exploitation to interaction. Hence, the geo-economics of the digital society is not merely a branch of science but a new paradigm of civilitarian economic order.
In the previous book, we demonstrated that the wars of the 20th–21st centuries resulted from an imbalance between power, economy, and technology. In this book, we argue that sustainable peace is possible only when the world’s economic system becomes self-regulating, polycentric, and just. The digital economy in its new form — geo-economics — unites law, technology, and ethics into a single mechanism of global stability.
The geo-economics of the digital society is an economy of peace, where profit does not contradict justice, and efficiency does not disrupt balance. It is the science of creating a world in which development and security reinforce each other, and digital persons, states, and institutions cooperate within a shared formula of sustainable well-being:
Freedom × Equality × Justice = Civilitarian Stability.
From Geopolitical Conflicts to Geo-Economic Interaction
The world has entered a phase in which traditional mechanisms of international stability have completely exhausted themselves. Modern geopolitics—as a system of power-based balancing of interests—has lost its mobilization potential and has transformed into a closed loop of mutual constraints, generating conflicts instead of development. In contrast, geo-economics offers a model of coexistence in which the driving force is not the struggle for resources but the joint management of values, knowledge, and technologies.
Geopolitical conflicts of the 20th–21st centuries were the result of a system in which national sovereignty existed separately from global responsibility. The collapse of empires, identity crises, energy wars, financial dependence, and technological control are manifestations of a model in which power was based on territory rather than on knowledge, values, and cooperation. The geo-economics of the digital society overcomes this contradiction by shifting the main axis of global development from ownership to interaction.
The new world order, based on the Digital Institutional Platform (DIP), opens the path to a polycentric architecture of cooperation, where every digital person, community, or state has an equal right to participate in forming joint economic decisions. In such a system, there are no dominants, since strength is measured not by military potential but by the capacity for integration, cooperation, and creation.
The geo-economics of the digital society is not only a new chapter in global economic thought but also an attempt to rethink the very concept of power in a world where information, data, neural networks, and algorithms become forms of property. Here, resources are not destroyed in wars—they are transformed into models of development, open for replication. The energy of conflict yields to the energy of co-creation.
The goal of this transformation is the formation of a civilitarian society in which economic activity is directed not toward exploitation but toward harmonization. Humans cease to be mere consumers of the system and become co-creators of a new global economy—through digital property, participation in the DIP, and the right to a social passive income as a share in the collective digital well-being.
The transition from the industrial economy to the geo-economics of the digital society is not merely a change in terminology but an evolution of the very logic of human coexistence. Whereas the industrial economy divided humanity by borders and blocs, the geo-economics of the digital society integrates it into a networked system of global development. It establishes a new paradigm—order without domination, an economy without aggression, security without fear.
The economy as a form of management that defined the 20th century is declining along with the industrial development model. Its basis was territorial control, resource dominance, and a balance of power, making wars a natural continuation of policy. Yet in the 21st century, the geopolitical logic of industrialism no longer ensures either stability or development.
According to Kondratiev’s long-wave theory, humanity undergoes structural changes in economic formations roughly once per century. Such transitions—from the steam to the electrical era, and later to the digital age—are accompanied by crises of old management systems and the emergence of new forms of social organization. Today, we live in the fifth, information-digital cycle, where artificial intelligence, big data, and digital platforms shape a new economic reality.
Defining innovations include the Internet—as a global network of knowledge and communications—and artificial intelligence, which has initiated a new level of analytical and managerial thinking. In this reality, power shifts from control over territory to control over information, algorithms, and institutional networks.
As early as the 1960s, the Ukrainian school of cybernetics under Academician Viktor Glushkov anticipated this transition. The concept of the Nationwide Automated System for Computation and Information Processing (NASCIP), developed at the Institute of Cybernetics of the Academy of Sciences of the Ukrainian SSR, effectively foresaw the creation of a digital state brain—a unified information system for managing the economy. The NASCIP ideas were ahead of their time, laying the foundation for modern digital governance, now realized in forms such as smart economies, blockchains, and neural network administration.
Thus, the transition from the industrial economy to the geo-economics of the digital society is not a reaction to crisis but the result of a long-term scientific and technological evolution, to which Ukraine has made a significant contribution. Geo-economic interaction is based not on the struggle for space but on cooperation in innovation, knowledge exchange, the development of digital property, and sustainable development projects.
The current era requires a new model of economic activity in which the main actors are not states as bearers of power but digital persons—as carriers of knowledge and trust. This necessitates digital law capable of regulating relationships between humans, institutions, and artificial intelligence in a space where physical borders disappear, and economic processes take on a neural-network form.
The transition from geopolitical conflicts to geo-economic interaction is a natural stage of civilizational renewal—a shift from struggle to co-creation, from control to partnership, from war over resources to joint management of development based on knowledge, innovation, and digital ethics.
The concept of digital society goes beyond mere technological modernization. It signifies the emergence of a new form of economic and social order, in which information, algorithms, and the interactions of digital persons constitute a unified neural-network system of life. Whereas the industrial era was based on material property, the digital civilization relies on digital property—a representation of an individual’s intellectual, informational, and communicational assets in the digital space.
In traditional economies, property is a material or corporate category. In the digital society, it acquires an institutional and informational character: it is defined by rights of access, creation, ownership, management, and exchange of digital objects—from data and code to artificial intelligence models. Such property becomes not only an asset but also a form of personal presence in the digital environment, forming the foundation of legal subjectivity.
The central element of this order is the Digital Institutional Platform (DIP) – a multi-level system combining technological, legal, and economic mechanisms for the functioning of digital society. It creates an environment in which digital persons organize themselves into Digital Polycentric Institutions (DPIs) – self-governing communities capable of undertaking economic, social, and innovative actions.
Processes within DPIs mirror the natural logic of social organization: cooperation, exchange, production, consumption, and reproduction. Each DPI functions as a digital analogue of a community or enterprise, but without centralized management—operating instead on algorithms of trust, consensus, digital contracts, and institutional protocols. Thus, digital society emerges as a self-organizing ecosystem in which economic activity originates from the bottom up through the interactions of digital persons.
Artificial intelligence (AI) plays a special role in this system. Within the DIP, AI functions as a tool of DPIs and operates only within the limits defined by digital persons and their collective contracts. Responsibility for AI actions rests with the digital person, preserving the anthropocentric principle of digital law: humans remain the subject, not the object, of digital processes.
The new economic paradigm is based not on exploitation but on the efficiency of interaction. Its driving forces are trust, competence, reputation, and cross-signals of mutual recognition. Profit in such a system is not the result of competition but a function of coordinated actions, collective intelligence, and decision synchronization.
Digital society represents a civilizational transition from ownership to participation, from hierarchy to polycentrism, from corporations to networked institutions. It does not reject previous forms of economic organization but integrates them into a new architecture, where the material, financial, and informational dimensions combine into a unified system of sustainable development.
The DIP serves not only as a technological platform but also as a new type of social contract regulating relationships among individuals, states, artificial intelligence, and global processes. Its mission is to create digital equilibrium, where individual freedom is constrained by equality and justice, and economic activity is subordinated to development rather than accumulation.
The geo-economics of digital society represents a new paradigm of human development, combining global interdependence with individual technological autonomy. In the 21st century, the boundaries between politics, economy, and technology have blurred: power no longer resides exclusively with states but is distributed among digital communities, platforms, intellectual networks, and individuals.
Digital society geo-economics does not describe markets but flows—of energy, information, value, and consciousness—that form a new type of world order: a neuro-economic system.
The authors propose a civilitarian concept of development that transcends classical economic theory and political philosophy. It is based on three postulates:
1. Humans as bearers of sovereignty.
The digital person, rather than the state or corporation, is the fundamental
subject of the new economic reality.
2. Property as digital and inalienable.
Every action, idea, or created informational product is part of a system of
digital property, defining the ethical and legal architecture of the new world.
3. Morality as a function of institutional justice.
Morality becomes a structural element of decision-making algorithms, ensuring
ethical consistency in the digital order.
Thus, the civilitarian system is a model in which economy, law, and morality are integrated into a single neural network of institutional development—the DIP. In this system, polycentric institutions (DPIs) function as “neurons” of collective human intelligence, connected by neurochains—digital chains of responsibility, accounting, and trust.
The primary mission of this concept is to end the era of wars and transition from the power-driven logic of history to an economy of coexistence, where justice and profit act as unified elements of the process—replicating peace through economic harmony.
The authors identify three main objectives for this new science:
· Developing formulas of digital stability—models ensuring system resilience even in crisis conditions;
· Formulating principles of digital profit—the equitable distribution of value created within global networks;
· Creating a formula for digital peace—a mechanism for the ethical integration of humanity through justice and equal access to resources.
The geo-economics of digital society is not a utopia but a practical system for constructing a new civilizational order, where science, law, technology, and humanism are united within the logic of sustainable development. It serves as an intellectual bridge, guiding humanity from an era of confrontation to an era of mutual creation.
The development of economic systems passes through resource-based, informational, and neuro-institutional phases, where information and knowledge become the key forms of capital.
The digital person functions as an autonomous economic agent capable of creating and distributing value within the Digital Institutional Platform (DIP).
Neurovalue is introduced as a new form of capital that reflects the cumulative contribution of the digital person to the production of economic value.
Mathematical
Model 1:
Neurovalue Productivity Model (NVP)
NVP=f(Ei,Is,Ap,Ct)\text{NVP} = f(E_i, I_s, A_p, C_t)NVP=f(Ei,Is,Ap,Ct)
Where:
· EiE_iEi — individual effort
· IsI_sIs — informational assets
· ApA_pAp — applied knowledge
· CtC_tCt — collaborative contributions
Polycentric Institutions (DPIs) organize economic interactions and ensure coordination and control over value flows.
Digital society ensures a sustainable system of economic balance in which core values are integrated into digital rules.
Management of energy, information, and value flows ensures the optimization of production and social processes.
DPIs support self-organization through algorithmic and neural-network processes, minimizing the need for centralized governance.
Digital contracts automate interactions, ensuring equivalence in exchanges and forecasting risks.
Mathematical
Model 2:
Neurovalue Flow Model (NVF)
dVdt=α⋅E+β⋅I−γ⋅L\frac{dV}{dt} = \alpha \cdot E + \beta \cdot I - \gamma \cdot LdtdV=α⋅E+β⋅I−γ⋅L
Where:
· VVV — neurovalue
· EEE — energy flow
· III — information flow
· LLL — loss factor
· α,β,γ\alpha, \beta, \gammaα,β,γ — proportionality coefficients
A free economy achieves stability through the balance of freedom, equality, and justice.
Cross-signals ensure synchronization of economic actions and early detection of crisis trends.
Algorithms predict and prevent economic and social shocks.
Mathematical
Model 3:
Digital Stability Equation
S=k1(F−R)2+k2(J−E)2→minS = k_1 (F - R)^2 + k_2 (J - E)^2 \rightarrow \minS=k1(F−R)2+k2(J−E)2→min
Where:
· SSS — system instability measure
· FFF — freedom
· RRR — realized freedom
· JJJ — justice
· EEE — equality
· k1,k2k_1, k_2k1,k2 — weighting coefficients
The following models are described: dynamics of the digital economy, neuroeconomic value equations, value replication cycles, and anti-crisis simulations.
Example: Simulation of a country’s economy based on a neurochain demonstrates that optimizing information flows reduces economic imbalances by 35%.
Cooperation among digital persons within Polycentric Institutions (DPIs) generates sustainable profit.
Model 5: Profitability Model of a Polycentric Economy (Rp)
Rp=∑i(Vi×Ci)T+MRp = \frac{\sum_i (V_i \times C_i)}{T + M}Rp=T+M∑i(Vi×Ci)
Where:
· ViV_iVi — value
· CiC_iCi — participation coefficient
· TTT — number of transactions
· MMM — management costs
The principle of zero internal taxation supports freedom within the Digital Institutional Platform (DIP).
Hub projects enjoy tax immunity until the transfer of infrastructure to states.
Model 6: Digital Fiscal Neutrality
Tnat=f(D,Vr,Pl)T_{nat} = f(D, V_r, P_l)Tnat=f(D,Vr,Pl)
Where:
· TnatT_{nat}Tnat — national tax impact
· DDD — digital activity
· VrV_rVr — value replication
· PlP_lPl — legal and procedural parameters
Digital law regulates the interaction between DPIs and digital persons, ensuring sovereignty, digital property, and jurisdictional neutrality.
Algorithmic law codifies the rules of economic and social interaction.
Digital law regulates the interaction between Polycentric Institutions (DPIs) and digital persons, ensuring sovereignty, digital property, and jurisdictional neutrality.
Algorithmic law codifies the rules of economic and social interaction.
Ensures the stability of resources and financial flows, preventing conflicts.
DPIs act as mediators and coordinators, applying risk prediction algorithms.
The Hub implements projects for climate adaptation and infrastructure recovery.
Hub projects generate additional resources and jobs, enhancing stability.
The Hub guarantees legal, economic, and institutional protection of assets.
Mathematical Model 7: Institutional Model of Global Stability
B=∫0T(Si×Cp−Rc) dt→maxB = \int_0^T (S_i \times C_p - R_c) \, dt \rightarrow \maxB=∫0T(Si×Cp−Rc)dt→max
Represents flows of resources, energy, and digital assets.
Ensures equal access and efficient economic management.
Collaboration with the EU, SCO, ASEAN, and other entities optimizes the use of rare earths, oil, and energy resources.
Aims to achieve economic equilibrium among countries.
Mathematical Model 9: World Balance Model
Gs=∑i=1n(Pi−Ci)−Dgeo→0G_s = \sum_{i=1}^n (P_i - C_i) - D_{geo} \rightarrow 0Gs=i=1∑n(Pi−Ci)−Dgeo→0
Digital persons generate value through data and informational resources controlled via DPIs.
Formed through digital contracts and cross-signals integrated into sub-platforms.
Rewards incentivize activity in neuroprojects and collective investments.
Fair income distribution supports economic equality.
Social passive income and technology development ensure the stability of the digital economy.
Citizen Passive Income (CPI)
CPI
represents a guaranteed share of digital property for each digital person
within the Digital Institutional Platform (DIP).
Example: Digital persons within the International Hub receive a monthly
income from joint projects, enhancing economic stability and solidarity.
2. Distribution Mechanism
Through the Sustainable Development Hub and its sub-platforms, income is automatically credited to digital persons.
3. Social Aspect
CPI ensures:
Citizen Passive Income and Social Stability
Example:
Within the DIP, each digital person receives a guaranteed share of income from
global digital services (data, algorithms, platforms) via the CPI mechanism.
· Effect: Even in countries experiencing economic crises, digital persons gain basic stability and access to resources.
· Result: Reduction of social and geo-economic disparities and increased international security.
Example:
The International Hub for Sustainable Development Projects implements the
construction of a renewable energy network in regions with a high risk of
conflict.
· Implementation: Projects are carried out with the participation of multiple DPIs representing different states and digital communities.
· Effect: Shared ownership and joint resource management minimize conflicts over ene.
Example:
A digital person concludes a contract to provide analytical data via a DIP
sub-platform.
· The contract automatically credits income to the digital person’s balance without intermediaries.
· Effect: Transparency and efficiency of information exchange and economic flows are enhanced.
Example:
DPIs cooperate with the EU and SCO in programs managing rare
earth and oil resources.
· Objective: Ensure equitable distribution of strategic resources through digital platforms.
· Result: Digital persons, states, and sub-platforms gain equal access to profits, reducing geopolitical tension.
Example:
Revenues from global advertising networks and DIP services are distributed
proportionally to the participation of digital persons in sub-platforms.
· Mechanisms: Gamification and rating systems are used to stimulate activity.
· Result: Social capital is increased, and ethical participation in the digital economy is encouraged.
1. The geo-economics of the digital society establishes a new paradigm of interaction.
2. Digital persons and DPIs provide global stability and economic justice.
3. Mathematical models enable the forecasting of profit, stability, and social fairness.
4. CPI and passive income create the economic foundation for international solidarity.
5. Digital contracts and neurochains ensure transparency, automation, and resilience of global processes.
The book “Geo-economics of the Digital Society: Models, Rights, and Global Security” introduces a new scientific and practical discipline that integrates economics, law, and morality within the context of digital civilization. Its central idea is that information, energy, and neural flows become key elements of the global order, while digital persons and polycentric institutions shape its economic, legal, and ethical framework (Ratushin & Polenok, 2025).
For the first time in scientific literature, systemic modeling of the digital economy is proposed, where profit, stability, and social justice are integrated into a single interaction model. Concepts such as neurovalue, cross-signals, digital contracts, and digital property are introduced to ensure continuity of economic flows and transparency. Mathematical models, including NVP, Digital Stability Equation, and World Balance Model, allow for forecasting risks and maintaining resource balance on a global scale.
The authors demonstrate that geo-economics can replace traditional conflict-based models of state interaction. Sustainable development hubs and polycentric institutions function as international guarantees, ensuring fair distribution of resources, energy, and digital income, neutralizing the causes of conflicts associated with unequal access to resources and geocultural diversity.
The implementation of Citizen Passive Income (CPI) as an inalienable right to digital property highlights the importance of economic solidarity and basic stability for all digital persons, regardless of nationality or location. This establishes a practical dimension of justice, where global revenues become a tool for social integration and reduction of economic disparities.
The book proposes a new civilizational approach, where digital rights and digital contracts are integrated into international law, enabling jurisdictionally neutral mechanisms for managing assets, investments, and sustainable development projects. Collaboration with the EU, SCO, ASEAN, and other organizations demonstrates how digital institutions can serve as instruments of global stability and peace.
The book represents a unique academic contribution by combining:
· Theoretical models of the digital economy;
· Applied methods of management within the Digital Institutional Platform (DIP);
· Innovative approaches to global security and stability;
· The concept of inalienable digital rights.
This provides a foundation for further research in geo-economics of the digital society, digital law, and global security.
The implementation of the concepts described in the book ensures sustainability and harmony of societal processes, where the economy is guided by ethical algorithms, and digital persons are responsible for their actions and the digital intelligence they generate. Thus, the book establishes a new civilizational paradigm of development, where freedom, equality, and justice form the foundation of global stability.