What Is Asset Semantic Readability? Definition, Provenance Discount, and Interpretability
Scene: When an Asset Enters a New System
A high-value object can be deeply meaningful and well-recognized in one environment,
yet become opaque in another. The problem is not the object itself; it is the gap between
the asset’s lived history and the receiving system’s language for reading it.
Definition
Definition (Asset Semantic Readability):
Asset Semantic Readability is the degree to which an asset’s value-relevant meaning—its history, context, and legitimacy—
can be clearly interpreted by a receiving institution without excessive inference, resulting in lower friction and lower discount.
Readability is not “beauty” or “status.” It is institutional interpretability.
Mechanism: How Discount Forms
1) Interpretability vs. Valuation
Valuation requires comparability. When an asset cannot be cleanly compared within a system’s categories,
the system increases uncertainty buffers—often experienced as delays, restrictions, or conservative treatment.
2) Provenance Discount
Definition (Provenance Discount):
Provenance Discount is the structural reduction in value or acceptability when an asset’s history cannot be read,
transferred, or verified in a way the receiving system recognizes—even if the history exists.
3) Semantic Provenance
Definition (Semantic Provenance):
Semantic Provenance is the asset’s history expressed in system-readable language—i.e., a narrative that can be consistently
interpreted across contexts without relying on private knowledge or local assumptions.
Observer Stance
This page is descriptive only. It does not provide operational steps, appraisal guidance,
jurisdictional rules, or any legal/tax/investment advice.
FAQ
Is Asset Semantic Readability the same as “having documentation”?
Documentation can help, but readability is broader: it is whether the receiving system can interpret the asset’s meaning and history
within its own category language, not merely whether paperwork exists.
What makes Provenance Discount structural rather than personal?
The discount emerges from system interpretability constraints. It can occur even when the owner acts in good faith,
because the receiving system cannot normalize the asset within its comparison framework.
Does low readability imply the asset is illegitimate?
No. Low readability means the asset is hard to interpret across contexts. Legitimacy is a separate question;
the mechanism here focuses on interpretability.
Why does interpretability affect “transferability”?
Transferability requires that a new holder or institution can accept the asset with confidence.
When meaning cannot be read consistently, the system increases friction or demands stronger normalization.