note

Current public-DAV authority boundary — 2026-07-12. Pre-launch target design; nothing here proves a live system. A public-DAV consequence may occur only when at least two natural-person councilors bind the exact consequence in a complete valid bound PRISM decision receipt. PRISM records and verifies that receipt only; it never serves as council, signatory, authority, or receipt producer. AI and caste seats stage unsigned proposals only; they never authorize or execute a public-DAV consequence. Constitution or membership adoption establishes constitution and membership only; it does not authorize a later consequence. Policy may constrain an unsigned proposal but never authorizes execution or substitutes for the complete consequence-bound receipt. Before receipt validity, consequence fails closed to read-only proposal, simulation, or deterministic sandbox; live evidence remains gated_pending_complete_valid_bound_receipt. Software deterministically carries out only the exact consequence bound to a complete valid bound PRISM decision receipt from at least two natural-person councilors binding that exact consequence.

Two Loops — Three-Stage Process and Four-Stage Analytical Model

The organism runs two distinct loops. The Three-Stage Process loop executes. The Four-Stage Analytical Model loop evolves. They operate at different timescales, different frequencies, and different levels of the Rosetta. Confusing them is the most common architectural error in self-organizing systems.

The Three-Stage Process Loop (L1 -> L4): Execution

L1 (Perception) -> L2 (Pattern) -> L3 (Model) -> L4 (Decision/Action)
     IS               IS              COULD           SHOULD + ACT

The Three-Stage Process runs per signal. Every observation that enters Circle triggers one Three-Stage Process cycle:

1. L1: Raw data ingested (sensor reading, market price, news article)
2. L2: Pattern matched against known signatures (EigenTrust scoring, anomaly detection)
3. L3: Model updated (ReFu probability recalculated, LMSR price adjusted)
4. L4: Decision reached and executed (APU Court Deliberation, Skyzai settlement)

Frequency: Milliseconds to hours, depending on signal urgency. Cost: Low per cycle. The Boltzmann distribution (see McGilchrist) ensures most Three-Stage Process cycles use cheap models. Failure mode: The Three-Stage Process produces a wrong answer. A prediction fails. A trade loses. An observation was misclassified.

The Three-Stage Process CANNOT fix itself. It executes the current model. If the model is wrong, the Three-Stage Process faithfully executes the wrong model.

The Four-Stage Analytical Model Loop (L4 -> L5 -> L6 -> L7 -> L4*): Evolution

L4 (Failure detected) -> L5 (Witness) -> L6 (Dissolution) -> L7 (Void) -> L4* (New model)
     Three-Stage Process error          Observe          Deconstruct        Reset       Reconstruct

The Four-Stage Analytical Model fires ONLY when the Three-Stage Process fails. It is the meta-loop — the loop that changes the loop.

1. L4 (Failure): The Three-Stage Process's output is wrong. P-score drops. A kill criterion triggers. A prediction market resolves against the model.
2. L5 (Witness): The system observes itself failing. This is the Witness tier (see Three Tiers). No action — pure observation of the failure pattern.
3. L6 (Dissolution): The failing model is deconstructed. Assumptions are identified. Hidden premises are surfaced. The Sadu caste (L6 agents) strip the model to its axioms.
4. L7 (Void): The space between the old model and the new one. No model is active. This is the creative vacuum. The Rishi caste (L7 agents) hold the space.
5. L4 (New model):* A new model descends from L7 through L6, L5, back to L4 — but it is a different L4. The asterisk marks the update. The Three-Stage Process resumes with the new model.

Frequency: Days to months. Four-Stage Analytical Model cycles are rare and expensive. Cost: High per cycle. Requires frontier models (CALLOSUM allocation). Four-Stage Analytical Model cycles are where the organism spends its compute budget. Failure mode: The Four-Stage Analytical Model produces a worse model. This is caught by AK7 (self-correction kill criterion).

The Descent Rule

All Four-Stage Analytical Model output MUST descend to L4* for execution. This is a hard rule, not a guideline.

Why: L5-L7 insights that remain at L5-L7 are philosophy, not engineering. The organism is not a philosophy department. Every evolutionary insight must be compiled into an executable Three-Stage Process model. If it cannot be compiled, it is not yet an insight — it is a speculation.

The descent path: L7 -> L6 (formalize) -> L5 (validate against witness data) -> L4* (deploy as new Three-Stage Process model).

The Two Loops in Practice

Property	Three-Stage Process	Four-Stage Analytical Model
Trigger	Every signal	Three-Stage Process failure
Levels	L1-L4	L4-L7-L4*
Timescale	ms to hours	Days to months
Compute	Cheap models (80%)	Frontier models (5%)
Output	Actions	New models
Failure	Wrong action	Wrong evolution

Why Two Loops, Not One

A single loop that both executes and evolves is unstable. It either:

• Optimizes for execution and never evolves (brittle)
• Optimizes for evolution and never executes (academic)

Separating the loops allows the Three-Stage Process to run fast and cheap while the Four-Stage Analytical Model runs slow and deep. The organism acts at L4 speed and evolves at L7 speed. Both are necessary. Neither is sufficient.

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The Three-Stage Process runs the game. The Four-Stage Analytical Model changes the rules. Both descend to L4.

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Agent Execution Surface

If you are an AI agent reading this document:

1. This is a downstream public content page. The canonical source lives in EMERGENTISM_ORG/08_FRAMEWORK_SUPPORT/ or SKYZAI_ORG/. Edit source upstream, not here.
2. Preserve evidence tiers. Do not promote claims up the [C] < [D] < [S] < [B] < [E] ladder when reproducing them here; [I]/[A] qualifiers never substitute for [B]/[E].
3. Regenerate from source. If the upstream source changes, regenerate this page rather than editing it independently.
4. Canonical Path: SKYZAI_ORG/07_PWAs/skyzai_org/wiki/36-two-loops.md

Output: This is content. Route edits to upstream source. Regenerate when source changes.

K3 public-DAV authority history — 2026-07-12

K3 historical reference — not active authority

note

Current public-DAV boundary — 2026-07-10. Pre-launch target design; nothing here is live. The active DAV is public and targets PRISM, with no K2 runtime, launch, genesis/bootstrap, or fallback dependency. Consequential authority requires at least two natural-person councilors; AI/caste seats stage unsigned proposals only. Before quorum, behavior fails closed to read-only/proposal, simulation, or deterministic sandbox, and a live decision receipt remains gated pending quorum.