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A protocol specification for tracing value from Origin through Derivative, Trace, Audit, and Royalty in AI-driven systems.

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Civilization Value Cycle Protocol

CVCP — Civilization Value Cycle Protocol

A protocol specification for tracing value from Origin → Derivative → Trace → Contribution → Audit → Royalty → Settlement → Reconciliation in AI-driven and agentic systems.

Current version:

v0.5.0 — Reconciliation & Recovery

Why CVCP?

AI systems increasingly:

  • consume external knowledge;
  • combine multiple sources;
  • make decisions;
  • generate commercially valuable outputs;
  • invoke paid tools and APIs;
  • perform transactions;
  • act through autonomous agents.

But a fundamental question remains:

Where did the value come from, who contributed to it, how was that contribution evaluated, was value actually returned, and what happens if the result was wrong?

CVCP provides a machine-readable structure for answering that question.


Core Value Cycle

Origin
  ↓
Derivative
  ↓
Trace Chain
  ↓
Evidence Assessment
  ↓
Contribution Assessment
  ↓
Audit
  ↓
Royalty
  ↓
Settlement Request
  ↓
External Settlement
  ↓
Settlement Receipt
  ↓
Dispute
  ↓
Reconciliation
  ↓
Recovery

CVCP is not a payment network.

It is the trace, attribution, audit, and value-lifecycle layer around payment.


v0.5 — Reconciliation & Recovery

v0.5 introduces a critical rule:

A completed settlement must remain correctable without erasing its history.

Real systems fail.

A settlement may contain:

  • a wrong beneficiary;
  • an incorrect amount;
  • duplicated execution;
  • missing execution;
  • incorrect contribution assessment;
  • disputed attribution;
  • incorrect Audit;
  • invalid authorization.

A trustworthy Value Cycle therefore cannot end at:

settled

It must also support:

settled
  ↓
disputed
  ↓
reconciliation
  ↓
correction
  ↓
recovery

Key Principle: Append-Only Correction

CVCP does not silently overwrite historical records.

Wrong:

Royalty r001 = 10
      ↓
edit
      ↓
Royalty r001 = 9

Correct:

Royalty r001 = 10
      ↓
Reconciliation
      ↓
Royalty r002 = 9

The original record remains part of the audit history.

Correction
must create history,
not destroy history.

Fourteen Schemas

schemas/
├── origin-record.schema.json
├── derivative-record.schema.json
├── trace-record.schema.json
├── trace-chain-record.schema.json
├── evidence-assessment-record.schema.json
├── contribution-assessment-record.schema.json
├── audit-record.schema.json
├── royalty-record.schema.json
├── settlement-request-record.schema.json
├── settlement-receipt-record.schema.json
├── dispute-record.schema.json
├── reconciliation-record.schema.json
├── state-transition-record.schema.json
└── value-cycle-record.schema.json

Architectural Layers

1. Origin Layer

Defines the root asset.

OID

The Origin contains rights, licensing, attribution, royalty, provenance, and policy information.


2. Derivative Layer

Declares that an output depends on one or more Origins.

Origin
  ↓
Derivative

3. Trace Layer

Records what actually happened.

reference
transform
reasoning
decision
action
result

Trace is evidence.

It is not automatically judgment.


4. Evidence Layer

Evaluates the quality and relevance of Trace evidence.

Trace
  ↓
Evidence Assessment

5. Contribution Layer

Estimates how much each Origin contributed.

Evidence
  ↓
Contribution

Contribution must be explainable rather than arbitrarily assigned.


6. Audit Layer

Evaluates Evidence and Contribution.

Contribution
  ↓
Audit

Audit includes explicit confidence and status.


7. Royalty Layer

Converts audited contribution into value allocation.

Audit
  ↓
Royalty

Important:

Royalty ≠ Payment

A Royalty describes what should be returned.


8. Settlement Layer

Settlement is executed externally.

Royalty
  ↓
Settlement Request
  ║
  ║ Settlement Boundary
  ║
External Executor
  ↓
Settlement Receipt

CVCP never requires possession of payment credentials or private keys.


9. Dispute Layer

v0.5 introduces explicit disputes.

Settlement
  ↓
Dispute

A Dispute must identify exactly what is challenged.


10. Reconciliation Layer

A Reconciliation records:

cause
affected records
resolution actions
resulting records
authorization
outcome

This allows correction without destroying history.


Supersession

Corrected records may contain:

supersedes_ref

Supported families include:

Audit → Audit
Royalty → Royalty
Settlement Request → Settlement Request
Settlement Receipt → Settlement Receipt

The supersession graph must remain acyclic.


Recovery Depth

CVCP does not require every problem to restart from Origin.

Settlement Recovery

Settlement failed
      ↓
Retry

Origin, Trace, Audit, and Royalty remain unchanged.

Royalty Recovery

Royalty incorrect
      ↓
Reconciliation
      ↓
New Royalty

Audit Recovery

Contribution disputed
      ↓
Reconciliation
      ↓
Audit reassessment

Causal Recovery

If Origin or Trace integrity is invalid, recovery may return to the causal layer.

This makes recovery proportional to the actual failure.


State Model

origin_registered
derivative_created
trace_recorded
audit_pending
audit_provisional
audit_verified
royalty_calculated
settlement_pending
settlement_processing
settlement_failed
settled
disputed
reconciliation_pending
reconciliation_processing
reconciled

Canonical path:

Origin
  ↓
Derivative
  ↓
Trace
  ↓
Audit
  ↓
Royalty
  ↓
Settlement
  ↓
Settled

Reconciliation path:

Settled
  ↓
Disputed
  ↓
Reconciliation Pending
  ↓
Reconciliation Processing
  ↓
Reconciled

Validation

Run:

python scripts/validate_examples.py

The validator checks both JSON Schema conformance and semantic integrity.

It covers:

  • Origin references;
  • causal parent integrity;
  • Trace DAG cycles;
  • Trace Chain completeness;
  • Evidence membership;
  • Contribution calculations;
  • normalization;
  • Audit confidence;
  • Royalty calculations;
  • Settlement Request authorization;
  • Settlement amount preservation;
  • Settlement Receipt integrity;
  • idempotency;
  • Dispute subject resolution;
  • Reconciliation references;
  • resolution-action compatibility;
  • supersession self-reference;
  • supersession cycles;
  • settlement retry invariants;
  • corrected amount conservation;
  • state continuity;
  • final Value Cycle consistency.

The repository also runs validation through GitHub Actions.


Example Philosophy

examples/pass/

contains valid protocol histories.

examples/fail/

contains deliberately invalid records and semantic scenarios.

A valid implementation must distinguish:

structurally invalid

from:

structurally valid
but semantically invalid

Therefore CVCP conformance is:

JSON Schema
+
Semantic Validation

Security Boundary

Do not place raw secrets inside CVCP records.

Do not store:

private key
seed phrase
bank password
card secret
API secret
authorization token

Use references instead:

destination_ref
authorization_ref
external_transfer_ref
external_transaction_ref

CVCP records authority evidence.

It does not become the authority.


Version History

v0.1
Value Cycle

v0.2
Causal Integrity

v0.3
Contribution & Audit Model

v0.4
Royalty & Settlement Interface

v0.5
Reconciliation & Recovery

The evolution can be summarized as:

Where did value come from?
        ↓
How was it transformed?
        ↓
Who contributed?
        ↓
How was that judged?
        ↓
How much value should return?
        ↓
Was settlement actually executed?
        ↓
Can a wrong settlement be corrected
without deleting history?

Design Position

CVCP treats value attribution as infrastructure rather than as a one-time payment calculation.

The protocol is designed around:

Origin
Trace
Attribution
Audit
Settlement
Correction

rather than around a single centralized authority.

The long-term objective is interoperability between systems that need to exchange verifiable value provenance and settlement evidence.


Current Status

v0.5.0 — Reconciliation & Recovery

The current v0.5 schema and example suite validates successfully through the repository validation workflow.

The protocol now covers the full path from Origin through external settlement and post-settlement correction.


Core Statement

Value must be traceable when created, auditable when allocated, receipted when settled, and recoverable when wrong.

About

A protocol specification for tracing value from Origin through Derivative, Trace, Audit, and Royalty in AI-driven systems.

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