---
title: Dual Curve
slug: dual-curve
url: https://templeton.host/lexicon/dual-curve/
type: defined-term
inDefinedTermSet: https://templeton.host/lexicon
author: Andrew Templeton
---

# Dual Curve

## Definition

The simultaneous depreciation of AI models (distribution shift, competitive erosion) and appreciation of knowledge assets (verifiers, labeled corpora, institutional rubrics) - where the appreciating side gets better through operating use, not in spite of it. The net rate determines whether an automation is a wasting asset or a compounder.

## Why this term exists

Physical capital allocation assumes depreciation. Knowledge capital allocation has both curves running at once - and the appreciating side is structurally unusual because it ratchets up with use rather than down. Invest in the appreciating side (verifiers, data) not the depreciating side (models).

## See also

- [Knowledge Capital](https://templeton.host/frameworks/knowledge-capital)
- [Verifier Capital](https://templeton.host/frameworks/verifier-capital)
- [Automation NPV](https://templeton.host/tools/automation-npv)
- [Construction Spread](https://templeton.host/lexicon/construction-spread)
- [Compile Time](https://templeton.host/lexicon/compile-time)

Canonical URL: https://templeton.host/lexicon/dual-curve/