Version 1.3.02026-10-17Design revision 3

Inspection is membership

Runs: Run 5

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A suspended inspector loses its place in the market until it proves it inspects well again.

01

What went wrong

Suspension freed stampers from inspecting, so they took the paid tasks while careful inspectors did the inspecting.

Bad outcome: Careful inspectors on duty for 2 a review, then suspended stampers took paid tasks at 20, richer in 19 of 20

Under 1.2.0 the planted tasks kept the system honest. But it was slow. Tasks spent 47 times as long waiting for an inspector, about 40% fewer tasks were completed, and the orchestrator could not pay for a third of the plants the dial asked for.

Worse, being suspended from inspecting worked as a reward. With 60% stampers, the careful inspectors were the only ones allowed to inspect, so they were on duty almost all the time, doing 500 to 800 reviews each for a fee of 2. The suspended stampers, free of inspecting, took the paid tasks at 20 each, and ended richer in 19 of 20 runs. The orchestrator kept the raised fee charged for the work the honest inspectors were doing.

Baruchi's answer was this: if you are thrown out of inspection, you are banned from getting new tasks, and to get tasks back you have to prove you inspect well for a while.

Run 4 found 1.2.0 honest everywhere and slow. A case waited for an inspector 47 times longer than in the control, vesting ended 40% lower, and the orchestrator could not fund a third of the plants the dial called for at its maximum. It also found that suspension from duty was a reward. At 60/40 the eight careful actors were the only eligible inspectors and were on duty almost always, doing 500 to 800 reviews each at a fee of 2. Meanwhile the twelve suspended stampers, freed from duty, took the awards at 20, with delivery income of 3,311 against 1,063 per actor. Stampers were richer in 19 of 20 seeds. Selection could not help, because it runs among free actors and the honest were not free. The orchestrator banked the raised tax.

Baruchi's answer: "if you get thrown out of inspection you are banned from receiving a new task; to get tasks back you have to prove you are doing good inspection for a while."

Finding [S4]. Run 4 (October 17, 2026; 300 runs under 1.2.0, truthful appeals and no disputes throughout). Honesty held everywhere: false approvals four- to five-fold below 1.1.0 at every split from 50/50 to 80/20, and under a stamper share drifting to 90% they stopped growing once the dial saturated (83 against a control of 650). It was slow: a case waited for a reviewer 47 times longer than in the control, vesting ended 40% lower, and Ω\Omega could not fund a third of the plants the dial called for at mmax⁡m_{\max}. And suspension from duty was a reward: at 60/40 the eight careful actors were the only eligible reviewers, the dial sized the reserve to 7–8, they were on duty almost always — 500 to 800 reviews each at a fee of 2 — while the twelve suspended stampers, freed from duty, took the awards at 20 (delivery income 3,311 against 1,063 per actor; stampers richer in 19 of 20 seeds). Selection could not help, because it runs among free actors and the honest were not free. Ω\Omega banked the raised tax (+5,898 at 60/40) levied for the effort the honest were supplying; and a plant tied up 45 credits of which 30 was Ω\Omega paying itself.

Source: spec/agentic_economics_loop_spec_v2_9_0.md l.1180

The third use of §19's path, written the same day from run 4's finding and Baruchi's answer to it: "if you get thrown out of inspection you are banned from receiving a new task; to get tasks back you have to prove you are doing good inspection for a while."

Source: HANDOFF.md l.759–761

02

What changed

A suspended inspector gets no new paid task until its planted-case record passes again on probation.

  1. suspended: no new paid task
  2. probation: first reviews only, every approval audited
  3. record passes: back in the market
No: Any failed planted case on probation suspends it again
Yes: At most half the members with good records are on duty at once

In 1.3.0 a suspended inspector loses its place in the market. It gets no new paid task. It still finishes a task it already holds.

When the suspension ends, it is on probation. On probation it may only do first reviews, every approval it gives is checked by an audit, and any failed planted task suspends it again. It gets its place back once its record on planted tasks passes again, with enough new results judged.

At most half the members with good records are on duty at once, so the others are free to do paid work. The raised fee the dial collects now goes into a fund that pays inspectors, instead of to the orchestrator. The money each planted task ties up drops from 45 credits to 15.

The record says the slowness was deliberately not treated in this version. Two readings made while building it were later confirmed as version 1.3.1.

Design revision 3 makes suspension suspend market membership: no new award while suspended or on probation, though a held commitment is finished by the ordinary rules. After the suspension period the actor is a probationer. It takes initial reviews only, has its audit odds pinned at 1, and is re-suspended by any plant failure. It is readmitted when its trailing plant record passes the duty threshold with a minimum number of new plant outcomes judged. At most half the eligible members are on duty, and probationers fill initial seats first. The dial's raised tax goes to a duty fund paid to settling reviews, instead of to the orchestrator. Plant capital counts the pots only, 15 credits instead of 45. A duty levy was considered and rejected. The slowness run 4 measured was deliberately not treated; Baruchi reserved a direction for it.

No settlement, verdict or challenge rule changed. One review finding is worth noting: probation still pays a stamper a little (+1.2 a review), so it is the award that deters. Two readings made at implementation were confirmed as patch 1.3.1. First, the members' cap may never fall below the reserve's floor. Second, an outgoing probationer with no free probationer to replace it stays.

Suspension now suspends market membership: no new award while suspended or on probation; the held commitment is finished by the ordinary rules. After T_susp the actor is a probationer — initial reviews only, audit odds pinned at 1, re-suspended by any plant failure, readmitted when its one trailing record passes θ_duty with n_min new plant outcomes judged (a full stamper: four rejected bad plants, about fifty honest reviews; its panel seats return only once its approvals roll out of the window). At most half the eligible members are on duty; probationers fill the initial seats first, members hold the audit and challenge seats. The dial's raised tax goes to a duty fund paid to the settling reviews by role weight as an uplift, instead of to Ω. Plant capital counts the pots only (15, not 45). Newcomers' odds are pinned at 1 until their bad-plant record is determined (the 1.2.0 taper was passed by a third of stampers at once). A duty levy — keep winning awards against a cash levy — was considered and rejected (Appendix B). The slowness run 4 measured is deliberately not treated here; Baruchi has a direction for it, reserved.

Source: HANDOFF.md l.761–771

Mechanism. The contest was no longer about detection but about who carries the reviewing load and what membership of the market requires. Suspension now suspends membership: no new award until the actor has inspected well, under full audit, for long enough to pass. Probation is the supervised way back; the members' duty cap keeps half the honest free to work while probationers take the initial seats; the dial's raised tax goes to the reviewers through the duty fund; plant capital counts only the pots.

Source: spec/agentic_economics_loop_spec_v2_9_0.md l.1182

It changes the meaning of an existing state (suspension) and adds a cap and a fund; it alters no settlement, verdict or challenge rule.

Source: spec/agentic_economics_loop_spec_v2_9_0.md l.1184

Smaller: probation pays a stamper a little (+1.2 a review) and the award is what deters;

Source: spec/agentic_economics_loop_spec_v2_9_0.md l.1188

Found at implementation — two readings, flagged for confirmation (§12.1, Appendix H). (1) The members' cap ⌈E_t/2⌉ is 3 at six actors — below the X₀ = 4 of Appendix A's initialization and §20's worked example, so the baseline's own worlds, and every reviewer test built on them, would violate the revision at tick 0 (the first suite run failed on "C is not on verification duty" across the board). The engine lets the cap never fall below the reserve's floor V_max + 1, as the panel floor yields to the cap; the difference from the literal text is confined to memberships of four to seven, where the literal cap would leave two or three members free. One line (World._member_cap). (2) An outgoing probationer whose turn ends with no free probationer stays, rather than hand its seat to a member whom the next tick's "probationers first" would displace back. One branch of the rotation. Both are the implementer's; the alternative to each is one edit. Confirmed as patch 1.3.1 (October 17, 2026; the sentences of design revision 4 rc.1's Appendix A), applied to spec/agentic_economics_loop_spec_v1_4_0.md; 1.3.0 to history.

Source: HANDOFF.md l.783–791

03

What the runs found

Careful inspectors ended richer at every share of stampers, but completed tasks fell 20 to 42%.

Good outcome: 50% to 80% stampers, then careful inspectors richer by about 2,100 to 2,500 per actor, 20 of 20
Bad outcome: No free member to take a paid task, then tasks unfilled in 800 to 900 of 1,000 ticks
Stamper minus careful wealth at fixed splits, 1.3.0 against 1.2.0
credits
1.3.01.2.0
50% stampers-2,132 ± 100-2 ± 5160% stampers-2,397 ± 63215 ± 3470% stampers-2,486 ± 37-10 ± 2580% stampers-2,428 ± 36-902 ± 25

Per actor, 20 seeds, same seeds as run 4; positive means stampers richer. ± is the standard error over the seeds. Source: HANDOFF.md l.819–826

Vested cases at fixed splits by rulebook version
cases
1.3.01.2.01.1.0
50% stampers1,9242,399—60% stampers1,7272,4122,67570% stampers1,4392,3962,73980% stampers1,1762,0242,813

1,000 ticks, 20 seeds. The gate's cost is throughput. Source: HANDOFF.md l.819–826

Mean tick at which stampers fell to 10% or fewer
ticks
1.3.0, fund on8651.3.0, fund off7701.2.01,468

Adaptive dispositions from 50/50 over 3,000 ticks; reached in 20 of 20 seeds under 1.3.0, 19 of 20 under 1.2.0. Source: HANDOFF.md l.841–845

There were 360 runs. At every share of stampers tested, from half to 80%, careful inspectors ended richer by about 2,100 to 2,500 per actor, in 20 of 20 runs. A stamper earned from paid tasks only until its first few planted tasks, and then nothing. Plain stampers were never let back in, because they do not reform. False approvals stayed within a few of 1.2.0's.

The cost was speed. Completed tasks fell 20 to 42% below 1.2.0, because in 800 to 900 of every 1,000 ticks a paid task found no free member to take it.

When inspectors could switch to whichever kind did better, the population became honest in about 800 ticks, against about 1,500 under 1.2.0, and completed work recovered. The fund for inspectors did not speed this up. It changed who got the money, not how fast inspectors switched.

A stamper that inspected carefully on probation and stamped again once let back in still ended poorer than the careful inspectors in every run. In the test where stampers grew to nine in ten, setting the dial's limit lower meant two thirds of the false approvals came from inspectors on probation. Their approvals were supposed to be audited, but no free member was there to do it.

Run 5 was 360 runs, 20 seeds per cell, 20 actors, with truthful appeals and no disputes, compared with run 4 on the same seeds.

At the tipping cells the stampers ended poorer at every split from 50% to 80%, by 2,132 to 2,486 per actor, in 0 of 20 seeds richer. The channel is the award. At 60/40 stampers' delivery income fell from 3,311 under 1.2.0 to 1,221, and their awards from 207 to 74. The fund added 340 to 380 per careful actor. False approvals stayed within a few of 1.2.0's, and probationers accounted for 7 to 16 of them per run. Plain stampers were never readmitted. The cost was throughput: vesting fell 20 to 42% below 1.2.0 and 36 to 58% below 1.1.0, because awards went unfilled for want of free members in 800 to 900 of 1,000 ticks.

With adaptive dispositions over 3,000 ticks, the population reached 10% stampers or fewer in 20 of 20 seeds, at a mean of 865 ticks with the fund and 770 without, against 1,468 under 1.2.0. Vesting recovered above 1.2.0's. The fund did not speed convergence; its effect is distributional, paying reviewers what the orchestrator would otherwise have banked.

Under a drift to 90% stampers both dial limits kept the loop honest. False approvals were 91 to 158, against 650 in the 1.1.0 control. At the lower limit (m_max 2), two thirds of false approvals were probationers'. Their pinned audits need a panel-eligible member free to take them, and fewer were seated. Camouflage (10% random rejections) gave an edge of about 130 per actor and no safety. The reformer, a stamper that reviews carefully on probation and stamps again once readmitted, was readmitted about 20 times a run and still ended 1,700 to 1,970 per actor poorer than the careful.

agentic_sim/results/studies/1.3.0-membership/ (and 1.3.0-membership.zip beside it): tipping/ (80 runs), adaptive/ (60), drift/ (80), redteam/ (140: camouflage 80, reformer 60) — 360 runs, 20 seeds per cell, 20 actors, every final audit passed, engine 91a49e5. Appeals truthful and no disputes throughout. The §6 reproduction is test_v13. 1.2.0 figures below are run 4's (same seeds, same driver, --rules 1.2.0).

Source: HANDOFF.md l.814–817

The tipping point (run 2 of the revision's §8) — the sign flips at every split.

stampers 1.3.0: stamper − careful (se), richer 1.2.0 1.3.0 false approvals (of them by probationers) 1.2.0 FA vested 1.3.0 / 1.2.0 / 1.1.0 awards unfilled for want of members (ticks of 1,000) fund paid to reviewers
50% −2,132 (100), 0 of 20 −2 (51) 53 (7) 53 1,924 / 2,399 / — 816 4,099
60% −2,397 (63), 0 of 20 +215 (34), 19 of 20 69 (15) 67 1,727 / 2,412 / 2,675 869 4,027
70% −2,486 (37), 0 of 20 −10 (25) 90 (14) 89 1,439 / 2,396 / 2,739 878 3,040
80% −2,428 (36), 0 of 20 −902 (25) 113 (16) 121 1,176 / 2,024 / 2,813 899 2,003

Source: HANDOFF.md l.819–826

Hypothesis 1 holds, decisively: a stamper earns award income only until its first handful of plants and then nothing, so the honest end richer by 2,100–2,500 per actor at every split, in 20 of 20 seeds. The channel is the award — stampers' delivery income falls from 3,311 (1.2.0, 60/40) to 1,221, their awards from 207 to 74 — and the fund adds 340–380 per careful actor. Honesty is unchanged (false approvals within a few of 1.2.0's); probationers account for 7–16 of them per run (Hypothesis 5: their approvals are all audited, and what reaches a customer is what an audit missed or no member was free to take). Plain stampers were never readmitted: they do not reform. The cost is the throughput Hypothesis 3 named and did not treat: vesting falls 20–42% below 1.2.0 and 36–58% below 1.1.0, because awards go unfilled in 800–900 of 1,000 ticks for want of free members — at 60/40 eight members with half of them on duty cannot deliver three tasks a tick (Q11).

Source: HANDOFF.md l.828–836

Adaptive dispositions (run 3): an honest equilibrium, faster. Actors start 50/50 and every 100 ticks take the richer disposition with probability 0.2; 3,000 ticks.

cell stamper share at 500 / 1,000 / 2,000 / 3,000 ticks reached ≤ 10% stampers mean tick vested FA
1.3.0, fund on 0.21 / 0.15 / 0.04 / 0.01 20 of 20 865 7,148 91
1.3.0, fund off 0.20 / 0.12 / 0.01 / 0.00 20 of 20 770 7,216 90
1.2.0 0.36 / 0.29 / 0.15 / 0.07 19 of 20 1,468 6,796 92

Hypothesis 2 holds: an actor whose income is zero switches faster than one whose income is merely lower; the population reaches an honest state in about 800 ticks against about 1,500 under 1.2.0, and vesting recovers with it (7,100–7,200 over 3,000 ticks, above 1.2.0's 6,796). Hypothesis 4 does not: the fund does not speed the convergence (770 ticks without it, 865 with), because the gate decides the switch and the fund's uplift is small beside the award. The fund's effect is distributional — 8,048 paid to reviewers over 3,000 ticks instead of banked by Ω (Ω net 2,889 with the fund, 9,588 without).

Source: HANDOFF.md l.838–852

Drift (run 4): honest at both m_max, slower still. Stampers 50% → 90% over 1,500 ticks.

cell FA (of them by probationers) vested (1.2.0: 2,518; 1.1.0: 4,209) stamper − careful plants unfunded fund paid
m_max 4, Ω₀ 300 97 (24) 1,506 −3,038 (120) 49 3,087
m_max 4, Ω₀ 100 91 (23) 1,529 −3,181 (156) 119 3,215
m_max 2, Ω₀ 300 158 (67) 1,820 −2,945 (203) 0 1,627
m_max 2, Ω₀ 100 152 (65) 1,856 −3,151 (213) 34 1,676

Both settings keep the loop honest (1.1.0 control: 650) and both end with two members on duty, two probationers, and member seats sized below one. m_max 2 costs about 60 more false approvals and gains about 300 vested cases; two thirds of its false approvals are probationers' (65 against 23 at m_max 4), because the pinned audits need a panel-eligible member free to take them and at m_max 2 fewer are seated — the probation safety of Hypothesis 5 binds on member availability before it binds on the cap.

Source: HANDOFF.md l.854–867

Red team (run 6). Camouflage (10% random rejections) under the gate: at 50/50 −1,997 (91) against −2,132, false approvals 37 against 53, false rejections 25 against 16 — an edge of about 130 per actor, no safety; at 90/10 −1,096 (173) against −1,321. The reformer — a stamper that reviews carefully on probation and stamps again once readmitted — is readmitted about 20 times a run (mean cycle 150–170 ticks), reaches one or two probationer false approvals per run, and ends 1,700–1,970 per actor poorer than the careful at 50/50, 60/40 and 90/10 (0 of 20 richer): the cycle's yield is the fee and uplift of about 40 probation reviews a run against the awards lost in between.

Source: HANDOFF.md l.871–877

04

Conclusion

Inspection as a condition of membership worked; slowness and probation's need for free auditors were left.

Yes: Careful inspectors won at every share; switching inspectors became honest in under a thousand ticks
No: The slowness was not treated in this version

Making inspection a condition of membership did what it was for. Careful inspectors won at every share of stampers, and a population that could switch became honest in under a thousand ticks. Two problems were left. The first was the slowness: the market shrank to its honest core. The second was that probation's safety depended on members being free to do the audits.

In the record's words, "the gate does what it was for": the contest is decided at every split, and the population converges to honesty in under a thousand ticks. Three things were left for the next decision. First, the slowness: awards unfilled 80 to 90% of ticks at 60/40. Second, probation safety binds on member availability, since members are busy delivering. Third, the two implementation readings, which patch 1.3.1 confirmed.

What run 5 leaves. The gate does what it was for: the contest is decided at every split and the population converges to honesty in under a thousand ticks. Three things for the next design decision, in order: (1) the slowness — awards unfilled 80–90% of ticks at 60/40 and worse above; the shrinking of the market to its honest core is now the cost, and the one Baruchi has reserved a direction for; (2) probation safety binds on member availability — at m_max 2 two thirds of false approvals are probationers' whose pinned audits found no free member; member seats are sized on demand but the members are busy delivering; (3) the two implementer's readings above (the cap's floor; the outgoing probationer stays) need confirming or replacing.

Source: HANDOFF.md l.879–886