The Axiomatic Theory of Distributed Monetary Circulation in AI-Native Economies (Zenodo)

Summary

• The manuscript develops a technology-neutral, stock-flow-consistent account of monetary circulation in agent-mediated and federated economies, with conditional propositions rather than empirical validation.p.2
• An authorized agent transferring an existing deposit between two holders at one bank does not by itself change total deposit liabilities.p.4
• A processor handling at most 10 instructions per interval leaves at least 10 unsettled when twenty requests arrive at once, but not when they arrive as two batches of ten.p.5
• In a stylized haircut example, a participant needing 90 units of intraday liquidity with collateral worth 100 sees secured credit fall from 95 to 80 when the haircut rises from 0.05 to 0.20.p.10
• In a two-bank experiment, a valid 30 payment leaves aggregate deposits at 900 and reserves at 180.p.12
• The manuscript does not prove that any specific currency will dominate or that blockchain is universally superior or inferior; full multi-currency equilibrium remains an open research question.p.19

Key insights

1. A distributed ledger is neither necessary nor sufficient for monetary validity, so technology choice should follow legal finality, privacy, governance and resilience.p.6
2. Technical atomicity of a software protocol does not establish legal finality of a transfer.p.6
3. Synchronized agent payment requests can create a payment queue without any additional aggregate expenditure.p.5
4. A haircut shock can induce queueing without any change in underlying transaction demand, as at least 10 units of requested settlement must be deferred or canceled in the stylized example.p.10
5. Loan-created deposits differ from payment settlement: after a new loan of 40 and a transfer of 30, aggregate bank deposits remain 940.p.12
6. Restricting an agent's mandate does not make the underlying money programmable.p.17
7. The author proposes that protocol commonality is compatible with monetary and jurisdictional plurality.p.20