Author: Y. Seo (@momotarou / Japan)Role: Metanist — Human–AI Understanding ArchitectAI Collaborator: GPT-5 (AI Understanding Trainer, A.U.T.)ORCID: https://orcid.org/0009-0005-7669-0612Version: v1.7 Abstract In v1.6, this series established the following: Understanding becomes value only through a judgment update. That update becomes value only when it is appropriated by the actor. AI cannot become the actor of understanding. v1.7 addresses the next unavoidable question: Can an actor exist when judgment itself is distributed? This paper neither idealizes nor rejects collective intelligence, organizations, or social systems.It examines distributed judgment strictly within the minimal framework of Understanding Capitalism. 1. Problem Setting: Judgment Is Already Distributed In contemporary society, judgment is distributed through: meetings and consensus processes reviews and committees algorithms and recommendation systems metrics, KPIs, and social pressure In such environments, the following question is often asked: Who made the decision? v1.7 asks a different question: Who appropriated the judgment update? 2. Can a Collective Become an Actor? The conclusion is straightforward: A collective itself cannot become an actor of understanding. The reason is structural: collectives can generate judgments but they do not possess a position that appropriates judgment updates Collectives can aggregate,but they do not own judgment. 3. The Illusion Produced by Distributed Judgment Distributed judgment tends to create the following illusions: someone must have thought this through agreement substitutes for understanding majority replaces appropriation What actually occurs is this: the initiative of understanding belongs to no one. 4. Core Proposition of v1.7 The core proposition of this paper is simple: Judgment may be distributed,but the initiative of understanding cannot be distributed. Initiative: cannot be divided cannot be averaged cannot be replaced by consensus It exists only at the point where it is exercised. 5. When Distributed Judgment Becomes Value Distributed judgment is neither inherently valuable nor alienating. It becomes value only under one condition: When someone appropriates the distributed judgmentas their own judgment update. At that moment, understanding converts into value. 6. The Moment Alienation Is Completed Alienation is completed when: judgment is distributed no one appropriates it action proceeds regardless In this state: Understanding may occur,but it does not become value. 7. Position Reached in v1.7 Only one point is fixed: An actor does not emerge from a collective.An actor emerges only through appropriation. Distribution is a structure.Initiative is an act. 8. Questions That Remain How should conflicts between multiple actors be handled? Can initiative be coordinated without being appropriated? How can systems support understanding without seizing initiative? These questions mark the boundary between the Marx Arcand the main body of Understanding Capitalism. Note This paper does not reject collectivity or democracy.It clarifies the condition under which they do not replace understanding. Initiative is not assigned.Initiative is taken.