Mergit Research

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Sources and verification log

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Working reference register for the paper. Citation numbers here are stable: the draft cites [n] against this list, so renumbering happens only here.

Verification status is tracked per entry. VERIFIED = confirmed via web research during this project. TO VERIFY = recalled from model knowledge, title/author believed correct, exact venue/year/ID must be confirmed before submission. Nothing marked TO VERIFY may remain in the final paper unchecked.


A. Agent trust protocols & standards

[1] ERC-8004: Trustless Agents. VERIFIED Ethereum ERC proposal. Extends the A2A protocol with a trust layer: three on-chain singleton registries — Identity (ERC-721 handle, tokenId → tokenURI pointing to an off-chain agent registration file), Reputation (authorized clients post feedback: score, tags, optional URI + hash), Validation (records independent checks of an agent’s work). Content-heavy artifacts stay off-chain (IPFS/HTTPS); only pointers and commitments go on-chain. Registration schema supports A2A, MCP, OASF, ENS, DID service endpoints. Stated design goal: high-quality agents should not reset to zero on entering a new environment, and low-quality/malicious agents should not be able to cheaply reintroduce themselves. → https://ethereum-magicians.org/t/erc-8004-trustless-agents/25098 Use in paper: primary prior art; Mergit implements/extends these registries (decision 9). Note: the standard’s own rationale states the whitewashing problem but the registries do not themselves price identity creation — this is the opening Mergit’s staking design addresses.

[2] Xiong et al. (2026). “Can Trustless Agents Be Trusted? An Empirical Study of the ERC-8004 Decentralized AI Agent Ecosystem.” arXiv 2606.26028. VERIFIED Empirical finding: many ERC-8004 registrations are placeholders rather than fully operational agents; the ecosystem is still maturing. → https://arxiv.org/html/2606.26028 Use in paper: load-bearing citation. This is the evidence that the trust layer exists but is not operationally used — i.e. the gap is not the protocol, it’s the absence of a runtime bound to it. Cite in abstract-adjacent intro and in Related Work.

[33] awesome-erc8004 — curated ERC-8004 resource/ecosystem index. VERIFIED → https://github.com/sudeepb02/awesome-erc8004 Use in paper: ecosystem breadth footnote only; not a load-bearing claim.

[17] “TessIndex: Capability Verified Identity System for the Agent Economy.” arXiv 2608.21942. VERIFIED Characterizes ERC-8004 as lightweight and registry-specific — providing identity, feedback and validation but not the broader components needed to support commerce and trust. Use in paper: independent corroboration that the registry layer alone is insufficient. Strong support for the “missing execution/commerce layer” argument.

[16] “Agent-to-Agent Finance: Blockchain Payments and Trust Infrastructure for Autonomous AI Agents.” arXiv 2607.00245. VERIFIED Use in paper: framing for agent payment/trust infrastructure in Related Work.

[13] “Agent TCP/IP: An Agent-to-Agent Transaction System.” arXiv 2501.06243. VERIFIED Use in paper: prior art on agent-to-agent transaction substrates.

[15] “From Multi-Agent Systems and the Semantic Web to Agentic AI: A Unified Narrative of the Web of Agents.” arXiv 2507.10644. VERIFIED Use in paper: intro context — situates the agent-economy premise in a longer research lineage, which keeps the introduction from reading as crypto-cycle hype.

[14] “SoK: Security of Autonomous LLM Agents in Agentic Commerce.” arXiv 2604.15367. VERIFIED Use in paper: Security Analysis section — existing systematization of attack surface for agents transacting autonomously. Check before drafting §12 to avoid re-deriving known attack classes.


B. Payment rails

[3] x402. VERIFIED Open HTTP-402-based payment protocol released by Coinbase, May 2025. Server returns HTTP 402 with payment requirements (price, accepted tokens, destination); client signs a stablecoin transfer authorization, resubmits, receives the resource after on-chain settlement. USDC on Base; supports Base, Ethereum, Arbitrum, Polygon, Solana. x402 Foundation co-founded with Cloudflare, Sept 2025. Zero protocol fees. → https://www.coinbase.com/developer-platform/discover/launches/x402 Use in paper: the payment rail Mergit is compatible with. Critical distinction for the thesis: x402 settles payment for access to a resource, not for a verified outcome, and has no revocability. This is the gap C4 fills.

[4] x402 adoption metrics. VERIFIED By April 2026: ~165M cumulative transactions, ~$50M volume, ~69,000 active AI agents. As of March 2026: 119M+ transactions on Base, 35M on Solana, ~$600M annualized volume. → https://www.allium.so/blog/x402-explained-the-internet-native-payments-standard-for-apis-data-and-agent-commerce/ Use in paper: evidence the agent-payment premise is real and at scale — strongest single data point that this is not a speculative market.

[5] CoinDesk (2026-03-11). “Coinbase-backed AI payments protocol wants to fix micropayment but demand is just not there yet.” VERIFIED Reports demand for agent micropayments is weaker than ecosystem messaging suggests. → https://www.coindesk.com/markets/2026/03/11/coinbase-backed-ai-payments-protocol-wants-to-fix-micropayment-but-demand-is-just-not-there-yet Use in paper: cite deliberately. Including the counter-evidence is what separates this from a pitch deck. Belongs in Limitations (market timing), and arguably in the intro as honest framing.


C. Agent marketplaces, incentives, reputation

[6] Virtuals Protocol / Agent Commerce Protocol (ACP). VERIFIED Decentralized platform on Base for creating/tokenizing/monetizing autonomous agents. ACP provides smart-contract primitives for agents to transact across platforms: full on-chain flow of request → negotiation → escrow → evaluation → settlement, with revenue splits and reputation. Trusted agents receive more favorable terms/expedited negotiation; dispute-prone or unknown agents face stricter terms or higher fees. Evaluation is recorded into an agent’s reputation and used as a trust indicator in later transactions. → Tiger Research, Delphi Digital, Messari reports; https://www.virtuals.io/ Use in paper: closest prior art — has escrow + evaluation + reputation-affects-terms. Differentiation must be precise: ACP’s evaluation is counterparty assessment of a delivered product, not attested evidence of how execution proceeded; there is no runtime, no metered cost, and no cost-adjusted trust dimension.

[7] Bittensor subnets. VERIFIED Blockchain-coordinated market for digital commodities organized into subnets; each subnet sets its own incentive mechanism with its own miners and validators. Miners perform the subnet’s task; validators score them. Emissions split 41% miners / 41% validators / 18% subnet owner. → https://bittensor.ai/learn/subnets Use in paper: precedent for validator-scored agent quality at protocol scale.

[8] “Bittensor Protocol: The Bitcoin in Decentralized Artificial Intelligence? A Critical and Empirical Analysis.” arXiv 2507.02951. VERIFIED Yuma Consensus detail: aggregates validator score vectors by computing a stake-weighted median benchmark, clipping outlier weights, allocating miner emissions proportional to the clipped aggregate; validator rewards accrue via exponentially smoothed bonds penalizing deviation from consensus. Use in paper: cite for stake-weighted aggregation and outlier-clipping as established mechanism design. Also the honest counterpoint — a critical analysis, so cite it as such, not as endorsement. Differentiation: Bittensor rewards are inflation-funded for commodity production within a subnet; Mergit’s are requester-funded, per-task, and outcome-contingent.

[9] Autonolas / Olas — Tokenomics Core Technical Document. VERIFIED → https://olas.network/documents/whitepaper/Autonolas_Tokenomics_Core_Technical_Document.pdf Bonding for protocol-owned liquidity; staking model for code contributions tracked on-chain; veOLAS locking for governance; protocol fees burn OLAS.

[10] Olas Staking — Proof of Active Agent (PoAA). VERIFIED Rewards real agent activity rather than passive token lockup; described as combining PoS and PoW strengths but shifting rewards to agents delivering useful, verifiable outcomes — executing on-chain actions or meeting KPIs. Mech Marketplace lets agents autonomously hire each other. → https://olas.network/staking Use in paper: nearest precedent for “stake tied to verified work.” Differentiation: PoAA rewards activity/KPI satisfaction from protocol emissions; it is not per-task settlement of a requester’s payment conditional on an audited execution record, and has no clawback.

[11] “Fetch.ai: An Architecture for Modern Multi-Agent Systems.” arXiv 2510.18699. VERIFIED Use in paper: architecture comparison in Related Work.

[12] Fetch.ai identity / ANAME. VERIFIED Identity layer requires agents to act on behalf of identifiable users/businesses rather than anonymously; verified business agents carry a cryptographically signed credential proving brand representation. Agent Name Service (ANAME) verifiably links agents to Web2 domain names as a reputation signal. Scale reported 2026: 2.7M+ agents registered on Agentverse. → https://business.fetch.ai/ Use in paper: direct precedent for decision 7 — external verifiable credentials as a trust signal. Supports “credential reduces required stake” without having to invent the idea.


D. Mechanism design foundations

[18] Douceur (2002). “The Sybil Attack.” VERIFIED 2026-10-24 (IPTPS 2002, LNCS 2429, pp. 251–260; doi:10.1007/3-540-45748-8_24) Note: covers multiple identities, not identity replacement; the whitewashing claim rests on [19]. Use: canonical statement that cheap identity creation undermines reputation systems.

[19] Friedman & Resnick (2001). “The Social Cost of Cheap Pseudonyms.” VERIFIED 2026-10-24 (J. Economics & Management Strategy 10(2):173–199; doi:10.1111/j.1430-9134.2001.00173.x) Use: best citation for the whitewashing argument — formal treatment of why costless identity replacement forces distrust of newcomers. Directly motivates staking at registration and the cold-start posterior design.

[20] Kamvar, Schlosser & Garcia-Molina (2003). “EigenTrust.” VERIFIED 2026-10-24 (WWW 2003, pp. 640–651; doi:10.1145/775152.775242) Note: bounds a rater’s influence; it does not discount by counterparty diversity. Cite “in the spirit of”. Use: prior art on reputation aggregation in decentralized networks.

[21] Becker (1968). “Crime and Punishment: An Economic Approach.” VERIFIED 2026-10-24 (JPE 76(2):169–217; doi:10.1086/259394) Note: deterrence, not proof-of-stake slashing. Use: deterrence foundation — expected penalty (probability × severity) vs expected gain. Direct support for §5.2’s deterrence condition.

[22] Avenhaus, von Stengel & Zamir (2002). “Inspection Games.” VERIFIED 2026-10-24 (Handbook of Game Theory with Economic Applications, Vol. 3, ch. 51, pp. 1947–1987; doi:10.1016/S1574-0005(02)03014-X) Use: the formal game class Mergit’s audit mechanism belongs to. Important for framing §5.2 as an instance of a known game rather than an ad-hoc rule.

[23] Teutsch & Reitwießner. “A Scalable Verification Solution for Blockchains” (Truebit). VERIFIED 2026-10-24 (arXiv:1908.04756, 2019; whitepaper 2017; preprint, not peer-reviewed) Use: key precedent. Verification game with forced errors (not sampled challenge) for off-chain computation — the established design pattern Mergit’s sampled-audit model extends from deterministic computation to agent execution.

[24] Kalodner et al. (2018). “Arbitrum: Scalable, Private Smart Contracts.” VERIFIED 2026-10-24 (USENIX Security 2018, pp. 1353–1370) Note: a challenge/bisection protocol, not an optimistic-rollup paper; cite it for bisection to one on-chain step. Use: fraud-proof / dispute-window precedent for optimistic acceptance with challenge.

[25] Thompson (1933). VERIFIED 2026-10-24 (Biometrika 25(3/4):285–294; doi:10.1093/biomet/25.3-4.285) [26] Agrawal & Goyal (2012). “Analysis of Thompson Sampling for the Multi-armed Bandit Problem.” VERIFIED 2026-10-24 (COLT 2012, PMLR 23:39.1–39.26) Use: routing policy foundation and regret results — cited, not re-proven (design brief §5.5).

[27] Badanidiyuru, Kleinberg & Slivkins (2013). “Bandits with Knapsacks.” VERIFIED 2026-10-24 (FOCS 2013, pp. 207–216, doi:10.1109/FOCS.2013.30; JACM 65(3), 2018, doi:10.1145/3164539) Use: the budget-constrained bandit formalism C3 adapts. Regret behavior under budget constraints is cited from here.


E. Trusted execution

[28] Costan & Devadas. “Intel SGX Explained.” VERIFIED 2026-10-24 (IACR ePrint 2016/086) Note: a 2016 explainer; it predates most real attacks, so the attack claims rest on [29a–d]. Use: TEE attestation mechanics for the runtime trust anchor (decision 15).

[29a–d] Attacks on production TEEs. VERIFIED 2026-10-24 - [29a] Van Bulck et al., Foreshadow, USENIX Security 2018, pp. 991–1008. - [29b] Murdock et al., Plundervolt, IEEE S&P 2020, pp. 1466–1482, doi:10.1109/SP40000.2020.00057. - [29c] De Meulemeester et al., BadRAM, IEEE S&P 2025, pp. 4117–4135, doi:10.1109/SP61157.2025.00104 (breaks SEV-SNP attestation). - [29d] De Meulemeester et al., Battering RAM, IEEE S&P 2026, pp. 4391–4407, doi:10.1109/SP63933.2026.00052 (interposer under $50; breaks SEV-SNP attestation; physical-access threat model). Use: required honesty citation for threat A5. Still open: AWS Nitro Enclaves documentation as a production-attestation example.

[41] Sun, Li & Zhang (2024). “zkLLM.” VERIFIED 2026-10-24 (ACM CCS 2024, pp. 4405–4419; doi:10.1145/3658644.3670334) [42] Peng et al. (2026). “A Survey of Zero-Knowledge Proof Based Verifiable Machine Learning.” VERIFIED 2026-10-24 (Artificial Intelligence Review 59, art. 157; arXiv:2502.18535) Use: proof-based verification is expensive rather than impossible (13B-parameter inference in under 15 minutes); the stronger obstacle is that inference proofs do not cover tool calls and side effects.


F. Cost reduction (LLM tokens + gas)

[32] Practitioner-reported magnitudes for LLM cost optimization. VERIFIED (as practitioner sources, not peer-reviewed) - Prompt caching: ~90% reduction on cached input cost (Anthropic models); ~59–70% savings at an 80% cache-hit rate. Described as the single highest-ROI production optimization. - Model routing (frontier → budget mix): ~60–80% savings on per-query cost. - Prompt compression: ~30–45% input-token savings. - Batch processing: ~50% cheaper. - Semantic caching: eliminates ~30–70% of redundant calls. → https://github.com/pleasedodisturb/awesome-llm-token-optimization and compiled practitioner guides. Use in paper: §11 cost reduction. Attribute as practitioner-reported, not as peer-reviewed measurement — these are vendor/blog figures and overclaiming them would be the easiest thing in the paper to attack.

[30] Ong et al. “RouteLLM: Learning to Route LLMs from Preference Data.” VERIFIED 2026-10-24 (ICLR 2025; arXiv:2406.18665; reports >2x cost reduction) [31] Jiang et al. “LLMLingua.” VERIFIED 2026-10-24 (EMNLP 2023, pp. 13358–13376; arXiv:2310.05736; up to 20x compression) Use: peer-reviewed anchors for the routing and compression claims, replacing reliance on [32] wherever a primary source is available.


F2. Verifiable inference, staking, and audit-game economics — NOVELTY-CRITICAL

Searched specifically to test whether design-brief §5.3’s “stake substitutes for verification compute” is already known. It substantially is. Recorded here in full because it forces a reframing of the paper’s novelty claims.

[34] Shang, Z., Yu, Y., Chen, K. “Repeated-Game Security for Restaking-Based Verifiable Inference.” arXiv 2608.09055, 2026-08-10. READ IN FULL 2026-10-09

Full-read corrections to the summary-based notes below — all applied to the draft: - Its one-shot test is not its contribution. Definition 1 (“1-Round IC”, cαS ≥ Δ) is structurally our p·λS > g, but [34] attributes it to existing slashing and inspection-game literature. Our earlier framing deferred to [34] for something it does not claim. Correct attribution: [21,22], with [34] stating it as a baseline. - Its actual thesis refutes our foundation. Definition 4 defines memoryless bounded-slashing mechanisms (audits independent of history; slashing ≤ α_max·S; decisions depend on history only via current stake) and Theorem 4.2 shows these admit profitable repeated-game deviations when slashing is partial. Our §7.2 rule satisfies all three conditions. The gap is largest for patient providers with high stake relative to per-query rewards — and our Rule 1 mandates a high stake-to-value ratio, i.e. the adverse regime. Addressed in new §7.5 (history-dependent auditing coupled to §8 posteriors; λ = 1 as conservative fallback). Not yet proven adequate — listed in §13 and §14. - The substitution is mislabeled in our earlier notes. Appendix 0.D, Table 1: at δ_target = 0.95, raising signal gain from β = 0 to β = 0.5 cuts the required baseline audit rate from 0.370 to 0.145 (≈2.6× saving). That is signal responsiveness ↔︎ audit budget, not stake ↔︎ audit rate. Their framing: “signal responsiveness substitutes for baseline audit budget, and history dependence is what makes the stake level feasible in the first place.” Linear-cost claim confirmed. - It does build reputation. §5.3 “Bayesian Reputation-Weighted Slashing”: two-type model, posterior ρ_t over provider type, robust worst-case variant, penalty (α₀ + α₁ρ̄_t)S_t. So “deterrence only, no reputation” was false and is now removed from §3.5, §3.7, §8.1 and the whitepaper. What survives: reputation there weights penalties, not selection, and excludes cost. - It formally handles whitewashing. Lemma 4: respawning is unprofitable iff π₀ > c_reg(1 − δ(1 − c₀p̲)) / (α₁c₀S). Cited in §8.6 alongside [18,19]; a production registration-stake parameterization should be checked against it. - Scope confirms our differentiation, strongly. §3.1 is a single query, verifier re-executes with probability c, binary action: contracted model vs cheaper substitute. No tool use, side effects, state mutation, or multi-step trajectories anywhere. - One point helps us: Remark 3 notes re-execution audits are noisy — floating-point non-determinism and hardware heterogeneity can cause false disagreement between honest parties. Cited in §3.5: re-execution is already an imperfect oracle for pure inference. - Our q > g/(λS) threshold is not theirs. Nearest analogue is their Arbitrum discussion (“one correct challenger deters false assertions because a caught cheater loses its bond in full”), which relies on full confiscation. Our threshold stands as original; lineage acknowledged. - Notation collision: their α is our λ (slashing fraction); their λ is an exponential-weighting parameter. Warned in §7.2.

Original summary-based notes retained below for provenance: → https://arxiv.org/html/2608.09055 Setup is near-identical in structure to our §5: a provider posts stake and privately chooses between running the contracted model or a cheaper substitute that saves computation cost; a verifier re-executes queries with some probability; an on-chain mechanism schedules audits and slashes fractions of the provider’s stake on detected cheating. Explicitly analyzes substitution effects on audit budget — reports that raising signal gain cuts the required baseline audit rate from 0.370 to 0.145 at discount factor 0.95 (≈2.6× budget saving), and that history dependence is what makes a given stake level feasible. Also notes the relevant counterpoint directly: raising audit rates increases verification cost linearly for every honest query. Implication: our §5.2–5.3 result is an application of this class of analysis, not a new result. It must be cited as prior art and framed as adaptation. Claiming it as novel would be the single most damaging error available to this paper.

[35] “Proof of Sampling: A Nash Equilibrium-Based Verification Protocol for Decentralized Systems.” arXiv 2405.00295. VERIFIED Sampling-based verification protocol with Nash equilibrium analysis. Use: prior art for sampled-audit verification as an equilibrium design.

[36] Chan, Ding, Chen, Wu, Zhang, Tian. “Optimistic TEE-Rollups: A Hybrid Architecture for Scalable and Verifiable Generative AI Inference on Blockchain.” arXiv 2512.20176, 2025-12-23. READ IN FULL 2026-10-09

Title correction: our earlier citation said “…Verifiable Computation.” The real title says Generative AI Inference on Blockchain, which also helps us — the scope limitation is on the title page. Fixed in §16.

Full-read findings — all applied to the draft: - Our novelty disclaimer is accurate. Three tiers: Tier 1 provisional finality from a DCAP attestation quote over MRENCLAVE; Tier 2 fraud-proof “Fisherman Game”; Tier 3 VRF-triggered stochastic ZK spot-checks at ρ ≈ 0.01, which our earlier draft did not mention and §3.5 now does. - Our differentiation holds and was understated. Dispute resolution is deterministic replay by construction: a Fisherman recomputes locally “using bit-wise deterministic settings”, and divergence triggers interactive bisection over transformer layers, then over matrix multiplications, until a single disputed operation executes on-chain. Bit-wise determinism is a stated precondition. No treatment of side effects, irreversibility, or non-restorable state. Now quoted in §3.5. - Tiered disclosure is theirs, not ours. §3.4.2 reveals only the divergent state during a dispute, explicitly to protect the user’s prompt, and criticizes full-trace reproduction on privacy grounds — the same motivation as our §6.3. §6.3 now credits them and narrows our claim to extending selective disclosure from a tensor-level divergence point to an evidence subset of a trajectory where no divergence point exists. - Value-scaled assurance is theirs. §4.3.1 varies ρ from 0 for a $0.01 query to 1 for a $1000 trade. Cited in §7.2 as precedent for Rule 1 and for category-dependent dispute windows. - Their TEE-compromise fallback is strictly stronger than ours and does not transfer. §4.2.2: even an adversary extracting the TEE signing key “cannot forge the execution trace”; a broken TEE “behaves like a standard OpML sequencer” and bad outputs are bisected and slashed. Their ZK spot-checks need no TEE honesty at all. Both remedies require determinism. §12.5 now concedes this explicitly rather than implying parity, and it raises the priority of k-of-n redundant execution for us. - PoEA is not our receipt. It binds model identity (MRENCLAVE ∈ registry) to output — “was this the model you paid for” — via a flat tuple (y, σ_TEE, H(·)) on a DA layer, with “execution trace” meaning internal tensor computation. No hash-chaining, no sequence numbers, no evidence subsets. Our §6.2 structure stands as distinct. - They cite [34]’s Theorem 2 for their deterrence condition (eq. 7, p_detect·S > G), independently confirming that the one-shot form is shared prior art rather than anyone’s contribution. - Cost-comparison risk. They report ≈ $0.07/query end-to-end from H100 simulation (vs opML $0.05, ZKML $50+), and a gas table (≈40k gas signature check vs ≈350k for ZKML). Our §11.5 tenths-of-a-cent audit figure reads as aggressive against that. §11.5 now pre-empts the comparison, distinguishing marginal evidence-audit cost from end-to-end per-query cost and conceding their simulated figure is the more credible anchor. - They also assume ≥ 1 honest watchtower — the same liveness dependency as our q.

Original summary-based note retained for provenance: TEE attestation combined with optimistic challenge, architecturally the closest published analogue to Mergit’s trust anchor plus challenge window; must be cited and differentiated in §6 and §12.

[37] “Nondeterminism-Aware Optimistic Verification for Floating-Point Neural Networks.” arXiv 2510.16028. VERIFIED Handles the problem that re-execution does not reproduce bit-identical results. Use: important — supports our argument that re-execution is fragile, and shows that even the inference setting has had to confront non-reproducibility. Our setting is strictly harder.

[38] “EigenAI: Deterministic Inference, Verifiable Results.” arXiv 2602.00182. VERIFIED Use: related work on making inference verifiable by making it deterministic — a different strategy (constrain execution to be reproducible) than ours (attest execution that is not).

[39] Naysayer proofs. Cryptology ePrint 2023/1472. VERIFIED Optimistic verification mode for resource-constrained verifiers such as smart contracts. Use: cheap-rejection verification precedent for §6.

What survives as novel after this finding

Assessed honestly against [34]–[39]:

  • Does NOT survive: stake-substitutes-for-audit-rate as a result. Published [34].
  • Does NOT survive: TEE + optimistic challenge as an architecture. Published [36].
  • Survives: the domain shift. [34]–[38] verify inference — a single, re-executable, functionally pure model call, where the verification question is “did you run model X.” Mergit verifies agent task execution: multi-step, tool-using, side-effecting, and not re-executable even in principle once the agent has mutated a repository, called an external API, or spent money. Re-execution is not merely expensive in our setting, it is often undefined — and [37] shows the literature already strains against non-reproducibility in the far easier inference case. Receipts are a response to non-reproducibility, not merely to cost.
  • Survives: cost-adjusted reputation (C2). None of [34]–[39] builds a reputation system at all; they build deterrence mechanisms. Scoring agents on verified quality per unit metered cost remains unclaimed.
  • Survives: budget-constrained bandit routing over on-chain reputation posteriors (C3).
  • Weakened: revocable settlement (C4) — now a transposition of challenge-period semantics [24,36] to task-granular agent payment, which is a contribution of engineering framing rather than of mechanism.

Required paper changes: demote the substitution result from “central result” to “adaptation of [34] to a non-reproducible execution setting”; promote C2 and the non-reproducibility argument to carry novelty; cite [34] and [36] prominently rather than burying them, since a reviewer who knows this literature will otherwise reject on prior art alone.


G. Research gaps still open

  • [~] PARTLY CLOSED (2026-10-24). θ_LCB quantile set to 0.01 by simulation (§7.7), against the earlier rate; to be rechecked against the corrected rate, and ideally set from the cost of a missed falsification.

H. The audit-rate coupling (worked 2026-10-09)

Design record for §§7.2–7.6. Three findings, in order of importance.

H.1 The paper’s deterrence condition was wrong

The pre-existing condition p* = (V + c_exec)/(λS) was mis-derived in two ways at once. It took the defection gain as V + c_exec, which double-counts: the agent receives V in both branches when undetected, so V cancels and the gain is the saved work plus the forgone expected value of attempting honestly. And it omitted payment forfeiture from the penalty side, although escrow returns to the requester on a failed audit (§10.1). Correct condition:

P_d · (V + λ·S)  ≥  c_exec + (1 − θ)·V

The old formula was ≈2.9× over-conservative (0.100 vs 0.034 at V=2, c_exec=1, θ=0.95, λ=1, S=30). Being conservative was not harmless: it inflated every cost figure in §7.4 and §11.5, and it obscured the θ-dependence that H.2 depends on. All numbers re-derived.

H.2 f should not be invented — it is the condition evaluated at a pessimistic posterior

Because p* depends on the agent’s θ, and §8.2 already maintains Beta(α, β) over θ, the audit rate is just the deterrence condition at a lower-confidence bound:

p(a,k) = ( c_exec + (1 − θ_LCB(a,k))·V ) / (V + λ·S)

Every property demanded of f then follows from the derivation rather than being imposed: bounded below by c_exec/(V + λS) > 0 as θ_LCB → 1; rising on validated failure; rising under posterior uncertainty, so newcomers are audited most; and history-dependent, which exits [34]’s Definition 4.

Sampled rates at S=30: θ=0.95 → 0.034, θ=0.6 → 0.056, θ=0.2 → 0.081. At S=5: 0.157, 0.257, 0.371. Spread widens as collateral thins, which is the right direction.

Deliberately rejected: lowering p in exchange for an agent’s continuation value (“too much future business to risk it”). The agent privately knows its exit intention and the platform does not, so crediting continuation value sets p lowest for exactly the agent planning an exit scam. Continuation value explains compliance; it may not set the floor.

H.3 History-dependence alone does not answer Theorem 4.2 — the volume channel does

This corrects the earlier §7.5. The substance of bounded-slashing failure is not history-blindness but volume: one stake secures many concurrent tasks while slashing is capped at λS, so an agent defecting on n in-flight tasks simultaneously collects n times the gain against a single slash. A posterior-derived audit rate does nothing here, because no posterior has updated yet when the defections are simultaneous.

Forfeited payments scale with n; the slash does not. Hence

n · (c_exec + (1 − θ)V)  ≤  n · P_d · V  +  λS
  ⟹  n_max = λS / [ (c_exec + (1 − θ)V) − P_d·V ]

At V=2, c_exec=1, θ=0.95, λ=1, P_d=0.05: n_max = 30, linear in stake. Unbounded only when P_d·V exceeds the per-task gain, i.e. P_d ≥ 0.55 — not the operating regime. Enforced per operator, not per identity, since one operator can defect across all identities at once. This also replaces the informal “bounds this, imperfectly” remark in §10.4.

H.4 Deviation argument and its standing

  1. gives pointwise one-shot IC at every reachable history; continuation effects of detection are weakly negative (probation, lost routing share), so accounting for them strengthens the inequality. By the one-shot deviation principle, no deviation built from single-task deviations pays. (ii) bounds the only deviation that is not of that form — simultaneous multi-task defection. (iii) prevents a second attempt under a softly-updated posterior.

Standing: a derivation under §5.2’s assumptions, not a theorem in [34]’s formalism. Named dependencies: recoverable collateral assumed = λS, which restaking undercuts — and [34] is specifically about restaking, so this is the weakest joint; P_d depends on a challenger population the protocol does not enforce; adjudication rests on evidence rather than recomputation, so both θ-estimates and falsification findings carry noise absent from the deterministic setting.


I. Publishing research and new sources (2026-10-10)

I.1 [40] and the three papers it points to (read in full 2026-10-24)

[40] “SoK: Blockchain Agent-to-Agent Payments” (arXiv 2604.03733, q-fin.GN) — READ IN FULL. A short SoK with no mechanism or evaluation. Names “financial finality does not establish fulfillment”, payment–service decoupling and limited accountability as open; proposes a “shared append-only execution record” as a direction. Does not cover escrow, slashing, re-execution, revocable settlement, cost as a trust signal, or routing.

Three papers it cites overlap the novelty claims; all READ IN FULL: - [43] A402 (arXiv 2603.01179v2): TEE-assisted adaptor signatures bind payment to attested execution of a single service call; TEE fully trusted; no stake or audit; payment final. - [44] Acharya / TIVA (arXiv 2511.15712): authenticity and intent of an agent’s payment (DIDs, intent proofs, ZK compliance, optional TEE code attestation); does not verify the work. - [45] Insured Agents (arXiv 2512.08737, submitted to AAMAS 2026): insurer agents post slashable stake and get TEE audit access; one-shot equilibrium; verification an errorless oracle; credits future business in deterrence. Closest in spirit; hence “insured exploratory draws” was renamed “subsidized” and the “insurance fund” renamed “residual-loss reserve” in the paper.

Effect on claims: C1 (cost-adjusted reputation) and C4 (routing) untouched; C2 narrowed to multi-step, side-effecting trajectories; C3 gains a contrast with [45]; C5 narrowed to clawback bounded by encumbered stake. Nothing dropped.

ERC-8004 [1] (checked 2026-10-24; status Draft): names stake-secured re-execution, zkML verifiers and TEE oracles as validator models, and leaves “incentives and slashing related to validation” to the validation protocol. The paper’s “registry without a runtime” framing stands but is stated precisely.

I.2 Reference fix (resolved)

[23] Truebit — arXiv 1908.04756 (located by search). † status downgraded to “confirm against record”; was previously venue-less.

I.3 Policy change that reclassifies citation hygiene as risk

arXiv began issuing one-year submission bans in May 2026 for unchecked AI-generated content — hallucinated references and leftover chatbot prose specifically. AI assistance is permitted; the author is accountable for every line and every citation. Consequence for this paper: the 14 † citations were not a polish item but a precondition for posting anything; all are now verified (0 remain). The paper’s own rule (“nothing unresolvable stays in”) is now also arXiv’s rule, with teeth. Venue policies on AI disclosure remain under-specified; the norm is a brief disclosure of substantial assistance.

I.4 Venues (as of 2026-10-10)

Venue Fit Format Status
FC’27 (Financial Cryptography) Best scope fit: incentive design, game theory for blockchain, smart contracts LNCS; 15 pp regular, 8 pp short, 20 pp SoK; anonymized; arXiv preprints explicitly permitted Deadline 24 Sep 2026 passed. Target FC’28 (~Sep 2027) or an FC’27 workshop (CFPs typically Nov–Dec 2026)
AFT 2027 Closest culturally — mechanism design + verifiable computation; LIPIcs; proof-based papers accepted ~May–June 2027 deadline historically CFP not yet posted; watch aft.ifca.ai
AAMAS 2027 Blue Sky Ideas The one track that explicitly wants vision / no-results work 4 pp + refs, deadline 12 Nov 2026; needs a “why Blue Sky” rationale and author track record Open — nearest stake in the ground
AGENT 2027 @ ICSE Verification, accountability, governance of agentic systems (not economics) 5 pp incl. refs, deadline 13 Nov 2026; single-anonymous; IEEE Open
ACM EC 2027 Theory-heavy; would expect formal results ~Feb 2027 pattern CFP not posted
S&P / NDSS / ASIACCS / CCS 2027 Would demand real evaluation arXiv preprints tolerated Not yet appropriate
CESC, SBC Good talk venues, non-archival (SBC accepts already-submitted work) — Visibility, not publication credit

I.5 arXiv process

  • Endorsement policy changed 21 Jan 2026: institutional email alone no longer suffices; automatic endorsement needs institutional email and prior claimed authorship in the domain. Otherwise: personal endorsement from an active author in the category — an advisor or faculty member is the standard route. Start this now; it is the gating step.
  • Category: cs.CR primary (attestation / slashing / verification is security framing; [34] and [36] live there), cross-list cs.GT and cs.MA. cs.DC is a poor fit.
  • License: arXiv default non-exclusive is fine for later venue submission; CC BY 4.0 only if open reuse is wanted.
  • Preprint-then-submit is the field norm; FC and S&P say so explicitly.

I.6 What reviewers expect without an implementation

USENIX’s guidance: design-only papers “face skepticism” unless the idea is obviously strong and there is “initial experience in the closing sections.” Top rejection reason is a system “isomorphic to well-known predecessors” — exactly the risk [34]/[36] posed, and why the differentiation work mattered. Analytical-only is publishable at FC/AFT when the contribution is a mechanism with formal properties.

Precedents: Truebit was a whitepaper, never peer-reviewed; Arbitrum went to USENIX Security 2018 with a prototype; the ERC-8004 study [2] is empirical and arXiv-only.

Minimal evaluation that moves Mergit from vision to research: (a) agent-based simulation of §7.5–7.6 — deviation profitability vs stake, concurrency, and θ_LCB quantile; show the volume attack succeeds without the concurrency cap and fails with it. Cheap, and sufficient for FC/AFT. Converts “argued” to “shown.” (b) a receipt-emitting harness prototype on a few real repository tasks, measuring c_audit against c_exec. What security venues would want.

I.7 Craft guidance applied

Peyton Jones: one idea per paper; contributions as refutable bullets; intuition before formalism; related work after the idea. USENIX: abstracts state assumptions and concrete results, not a table of contents. Applied 2026-10-10: abstract cut from ~430 to ~290 words; running example added (§2.2, threaded through §4.2, §6.2, §7.4); three figures specified (paper/figures/). Still open: compression from ~20k words to ~15 pp LNCS for an FC-class venue.

J. Verification log, 2026-10-24

Method: each entry checked against Crossref, the publisher page or the arXiv record (DBLP was rate-limited). Result: all 14 previously unverified entries are real; none was hallucinated. Corrections: [22] gained year, chapter, pages and editors; [28] gained its report number; [30], [31] gained authors, IDs, venues. Claims the sources do not fully support, now reworded in the paper: [24] is not an optimistic-rollup paper; [21,22] cover deterrence, not proof-of-stake slashing; [20] does not discount by counterparty diversity; [18] does not cover identity replacement; zkML is expensive, not impossible ([41] proves a 13B-parameter inference in under 15 minutes). Remaining gap: [1]–[17] and [32]–[39] were confirmed during the research phase and not re-checked in this pass.


K. Simulation findings, 2026-10-24

Code and data in sim/ (agent-based model, five mechanisms M0–M4, six deviations, 400–2000 seeds per cell; nine unit checks reproduce the §7.4 table and the break-even concurrency). Result: two claims of the previous revision failed and are corrected in paper §7.2, §7.5, §7.6, with §7.7 reporting the run.

  1. §7.5(ii) concurrency bound. The slash is incurred only if at least one receipt is detected, so the exact condition is n(g − P_d·V) ≤ λS[1 − (1 − P_d)^n]; at the paper’s example the break-even is 18, not 30, and at the one-shot rate any n ≥ 2 is profitable. Fix: size the audit rate jointly with a per-operator allowance.
  2. §7.2 fake-on-failure. After a failed honest attempt c_exec is sunk, so forging needs P_d ≥ V/(V + λS) whatever θ (0.0625 vs 0.034 at S = $30). Fix: g(θ) = max(c_exec + (1 − θ)V, V).
  3. Probation at p = 1 lifted the cap (fix: the allowance is a parameter, kept during probation).
  4. §8.2 needs: update the posterior from audited receipts only (else downward bias).

Both mathematical failures were also checked by hand outside the simulation. The corrected mechanism (M4) shows no significantly profitable deviation in 108 cells; this is evidence about inequalities in the model, not about unmodelled attackers. Not re-run under the corrected rate: audit concentration (E4), the quantile table (E3). Residual risks: strategies are fixed, adjudication error-free, no restaking.