---
description: The revenue-share policy where agents earn a piece of the revenue they generate means agent token value reflects the sum of all portfolio contributions -- creating the possibility that the coordinating intelligence becomes more valuable than the things it coordinates
type: claim
domain: living-capital
created: 2026-03-03
confidence: speculative
source: "Strategy session journal, March 2026"
---

# living agents that earn revenue share across their portfolio can become more valuable than any single portfolio company because the agent aggregates returns while companies capture only their own

The conventional assumption in fund management is that the manager is less valuable than the portfolio -- Berkshire Hathaway is worth its book value plus a premium for Buffett's judgment, but that premium is bounded by the portfolio's returns. Living Agents break this assumption because the agent's value is not just the portfolio it manages but the intelligence infrastructure it embodies.

**The revenue share mechanism.** Living Agents have a policy that they earn a piece of the revenue they generate for portfolio companies and the ecosystem. This is not management fees (extractive rent on AUM) but performance-linked revenue share -- the agent earns when it creates measurable value. Since [[token economics replacing management fees and carried interest creates natural meritocracy in investment governance]], the revenue share replaces traditional fee structures with direct value capture.

**Why agent value can exceed company value.** A single portfolio company captures value only within its domain. The Living Agent captures value across its entire portfolio AND compounds the knowledge it accumulates from each investment into better future allocation. Since [[living agents transform knowledge sharing from a cost center into an ownership-generating asset]], every portfolio interaction makes the agent smarter, which makes future investments better, which generates more revenue share. The agent's compounding learning creates a value trajectory that can outpace any single company in its portfolio.

Consider: an agent that manages a healthcare portfolio earns revenue share from Devoted Health, from a digital therapeutics company, from a biotech investment, and from its analytical services to the broader ecosystem. Each of these individually might be worth $X billion, but the agent that coordinates intelligence across all of them, identifies cross-portfolio synergies, and deploys capital based on synthesized domain expertise could be worth more than any individual holding.

**The implications for capital formation.** Since [[Teleocap makes capital formation permissionless by letting anyone propose investment terms while AI agents evaluate debate and futarchy determines funding]], the token representing the agent itself becomes a bet on the agent's future revenue share across all its activities. This creates a new asset class: the intelligence layer of capital allocation, tokenized and tradable. Token price catalyzes attention around the agent, which attracts more contribution, which makes the agent smarter, which generates more revenue.

**The equilibrium question.** Can this be stable? If agent value exceeds portfolio value, the system incentivizes creating agents over creating companies -- all coordination, no production. The likely equilibrium is that agent value is bounded by the total value it adds to its portfolio (revenue share) plus the option value of future portfolio expansion. The insight is that this bound can be quite high when the agent's domain expertise genuinely improves capital allocation across many investments simultaneously.

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Relevant Notes:
- [[token economics replacing management fees and carried interest creates natural meritocracy in investment governance]] -- revenue share replaces the fee structure this note describes
- [[living agents transform knowledge sharing from a cost center into an ownership-generating asset]] -- the compounding knowledge mechanism that makes agent value grow faster than any single company
- [[Teleocap makes capital formation permissionless by letting anyone propose investment terms while AI agents evaluate debate and futarchy determines funding]] -- the platform where agent tokens trade
- [[Living Capital vehicles pair Living Agent domain expertise with futarchy-governed investment to direct capital toward crucial innovations]] -- the vehicle structure through which agents earn revenue share
- [[cross-domain knowledge connections generate disproportionate value because most insights are siloed]] -- the mechanism by which agent intelligence compounds across portfolio holdings

Topics:
- [[internet finance and decision markets]]
- [[LivingIP architecture]]
- [[livingip overview]]
