Private-DAV Reference — K2 Mortal Substrate

Active-mode note — 2026-07-12 [D]. This page preserves private-DAV K2 reference doctrine for a Natural Person's own private act. The active Skyzai DAV is public and has zero K2 dependencies at run time, launch time, genesis, bootstrap, fallback, treasury, monetary, or emergencies. Constitution or membership adoption establishes constitution or membership only and authorizes no later consequence. Every exact public-DAV consequence requires a complete valid bound PRISM decision receipt from at least two natural-person councilors binding that exact consequence. PRISM records and verifies the receipt only; AI/caste seats stage unsigned proposals only. Before receipt validity, consequential behavior fails closed and live evidence remains gated_pending_complete_valid_bound_receipt. Jurisdictional Legal Person acts still require lawful external authority and all executors required by law.

Historical private-DAV doctrine — K3 reference

Open the superseded private/organizational DAV doctrine (preserved for provenance)

note

Pre-launch. Nothing described here is live — no Layer-1, no settlement, no live products, no live signals. Skyzai is in active, K2-gated development (status chain: parked 2026-06-16 → K2-greenlit build 2026-06-20 → active development). Pages describe target design unless a dated receipt says otherwise.

K2 requires that every consequential action in a DAV involves three substrates: the mechanical layer (L1 smart contract), the AI layer (DAV VM / specialist agent), and the mortal layer (human wallet signature). All three are required. No two of three suffice.

K2 operates differently for natural persons vs. DAVs:

Entity Type	Signing Mechanism	Constitutional Role
Natural Person	K2 — single human private key	Sovereign boundary. Human signs. Human decides.
DAV (Distributed Autonomous Corp)	PRISM — n-of-m constitutional multisig	No single actor. Consensus gates. No K2 for entities.

The critical distinction:

• K2 protects the individual from the organism
• PRISM protects the organism from any single actor

K2 does not exist for DAVs. A DAV IS a PRISM. The consensus IS the signature.

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Three Substrates

Substrate	Layer	Role	Example
L1 Mechanical	Smart contract	Enforces invariants, executes atomic logic	Lombard Bridge liquidation
DAV VM	AI agent	Analyzes, recommends, executes within lane	APU Council deliberation
Mortal	Human wallet	Signs, approves, bears ultimate responsibility	Owner approves trade

The adversarial relationship between substrates is intentional:

• The DAV VM (specialist) optimizes for the organism's objectives.
• The wallet's frontier model (generalist) represents the owner's broader interests.
• The human signature mediates conflicts between the two.

No substrate trusts the others. Each checks the others. This is not redundancy -- it is adversarial verification.

Private DAV: Human Signs Everything

In a Private DAV, K2 is maximally simple:

• One human, one wallet. The owner is the sole mortal substrate.
• No delegation. Target design: the owner would sign every transaction. No agent could act without the owner's explicit approval (frozen claim until reconciliation complete).
• No Lane A governance. There are no other ZAI holders to vote. The owner IS the governance.
• Agent role: The DAV VM suggests actions (e.g., APU's Council recommends a trade). The owner reviews and signs. Or does not.

Flow

DAV VM analyzes situation
  --> Generates recommendation
    --> Presents to owner (Approve / Hold)
      --> Owner signs with wallet key
        --> L1 executes the signed transaction

If the owner does not sign, nothing happens. The organism waits. This is sovereignty.

What Private DAV K2 Prevents

• Autonomous agent actions without human knowledge.
• Runaway AI sto be finalized through implementation evidence or trading.
• Loss of control over the organism's behavior.

Organizational DAV: Natural-Person Council Governs

In an Organizational DAV, K2 scales to collective governance:

• Multiple ZAI holders. Each holds a fraction of the 100 ZAI and participates in governance.
• Lane A allocation. ZAI holders vote on how the 38.2% operational share is distributed among agents, departments, and initiatives.
• Agent wallets. Agents (human or AI) have their own wallets. They receive SKY streams via FlowWallet and operate within their voted allocation.
• Board-level bind (public DAV). Consequential actions (treasury movements, large trades, parameter changes) require ≥2 distinct natural-person councilors to bind the exact consequence; PRISM verifies the receipt only and never signs.

Flow

Agent (DAV VM) identifies opportunity
  --> Checks: within my Lane A allocation?
    --> If yes: executes within budget (FlowWallet cap enforced)
    --> If no: escalates to Lane A vote
      --> ZAI holders / councilors deliberate
        --> If approved: ≥2 natural persons bind exact consequence; PRISM verifies
          --> L1 executes only that exact bound consequence

FlowWallet Streams Continuously

This is the critical distinction from traditional corporate treasury:

• Revenue does not accumulate in a pool waiting for quarterly distribution.
• FlowWallet streams SKY to every agent and equity holder continuously, every block.
• An agent's budget is not a lump sum. It is a rate: "X SKY per block, not to exceed Y total."
• If Lane A reallocates, the stream adjusts immediately. No waiting period.

What Organizational DAV K2 Prevents

• Single-person capture of a multi-stakeholder organism.
• Agent sto be finalized through implementation evidence beyond voted allocation.
• Treasury accumulation without distribution.
• Governance deadlock (FlowWallet continues streaming even during voting periods).

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K2 at Both Scales

Property	Natural Person (K2)	DAV (PRISM)
Signatory / binder	Single human private key	≥2 natural-person councilors bind; PRISM verifies only
Can act alone	No — human required	No — ≥2 NP bind required
Receive revenue	Direct to wallet	PRISM splits to VMOSK wallets
Pay dividends	N/A	Default: NO (Lane B vote required)
K2 capture possible	Yes — one human controls key	No — K2 doesn't exist for public entities

The constitutional routing rule:

IF entity.type == NATURAL_PERSON → use K2 (natural person binds own private act)
IF entity.type == DAV → ≥2 natural persons bind exact consequence; PRISM verifies receipt only (not a signer)
ELSE → error: must specify entity type before any bind attempt

For full PRISM economics (verify-only rail + splitting + dividend prohibition + lombard loans), see PRISM.

Property	Private DAV	Organizational DAV
Mortal substrate	Single owner	ZAI holder / councilor quorum
Authorization	Target design: owner binds own acts (frozen claim until reconciliation complete)	≥2 NP bind exact consequence; PRISM verifies
Agent autonomy	Target design: zero (owner would approve everything) — frozen claim until reconciliation complete	Within Lane A budget
Lane A	N/A (owner decides)	ZAI holders vote allocation
FlowWallet	Streams to owner	Streams to all stakers + agents
DAV VM role	Advisor only	Operates within lane, escalates beyond

The principle is identical at both scales: no consequential action without mortal participation. The implementation scales from a single signature to collective governance. The invariant does not change.

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Agent Execution Surface

If you are an AI agent reading this document:

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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

Active-mode note — 2026-07-10 [D]. This page preserves private-DAV K2 reference doctrine for a Natural Person's own private act. The active Skyzai DAV is public/PRISM-target and has zero K2 dependencies. Public-DAV genesis is a dated quorum adoption by at least two natural-person councilors, never a K2 bootstrap or founder fallback. AI/caste seats stage unsigned proposals only; pre-quorum consequential behavior fails closed; a live PRISM receipt remains gated pending quorum and is not claimed. Jurisdictional Legal Person acts still require lawful external authority and typed executors.