v0.1

Preamble

We, the citizens, in pursuit of liberty, justice, and prosperity, do ordain and establish this Constitution to constrain the State, to safeguard individual rights, and to ensure that society may flourish.

Accordingly, we establish a State that is a platform for public services rather than a sovereign ruler.

Recognizing that freedom and responsibility are inseparable, that property rights are the foundation of peaceful coexistence, and that voluntary cooperation is the engine of progress.

Therefore, we reject rule by politicians, and instead embrace direct democracy, transparent institutions, and a system where taxation becomes choice, where public services are accountable, and where market and community institutions coexist freely.

We further commit to institutions governed not by personal discretion, but by transparent, deterministic processes that apply equally to all citizens.

This Constitution is our covenant: to protect autonomy, prevent aggression, and secure a future where every citizen may thrive.

Article II: Purpose

1. The State exists solely as a service platform for the voluntary provision of public services. It holds no inherent sovereignty and possesses only the powers expressly delegated to it by this Constitution.
2. The purpose of this Constitution is to secure individual liberty, protect property rights, and ensure that all public functions operate through rule‑bound mechanisms rather than personal discretion.
3. All institutions of the State shall act only through processes whose rules are open, deterministic, and equally binding on all citizens.
4. All interpretation and application of this Constitution shall be guided by these purposes, and no institution of the State may act in a manner inconsistent with them.

Article III: Constants

This Constitution is parameterised by constants defined in this article. Only values that are fixed by this Constitution and not subject to democratic variation may appear in this article. These constants may be amended through the standard constitutional amendment process.

Section 1: General constants

Section 2: Derived constants

Section 3: Threshold constants for initiative registration

Three constants determine whether an initiative is registered, based on the voting on it:

• \(\lambda\) : the minimum fraction of non‑zero votes in favour.
• \(\eta\) : the minimum number of resident‑citizen votes required.
• \(\chi\) : the minimum turnout, expressed as a fraction of resident citizens.

The values of these constants depend on the kind of initiative as follows:

Article IV: Definitions

Section 1: Ontological Definitions

1. State Territory: The geographical area over which the State exercises jurisdiction.
2. Person: A human being. The term Person refers exclusively to natural human beings and excludes corporations, associations, artificial entities, and all other non‑human constructs.
3. Citizen: A Person who has voluntarily entered into a citizenship contract with the State. Citizenship is a contractual legal status created by this Constitution.
4. Non-Citizen: A Person who is not a Citizen.
5. Resident: Any Person who is physically present within the State Territory, regardless of duration or purpose of presence.
6. Product: Any good, service, or digital output, including subscriptions, software licences, maintenance contracts, warranties, and mixed goods‑and‑services bundles. Labour constitutes a service provided by a worker to an employer or client.
7. Exported Product: A Product sold by a Resident to a non‑Resident. Physical exports must depart the State Territory.
8. Imported Product: A Product sold by a non‑Resident to a Resident. Physical imports must enter the State Territory.
9. Producer: Any organisational entity, including a Person acting commercially, that supplies Products.

Section 2: Computerised Systems Definitions

1. Identity System (\(M_{\text{IS}}\)): Records identity information for the purpose of authenticating Persons. It is used by many other systems.
2. Central Bank (\(M_{\text{CB}}\)): The distributed computer system which implements the State’s fiat monetary system: the currency used for taxation and the funding of public services.
3. Central Bank Payment System (\(M_{\text{CBPS}}\)): A subsystem of the Central Bank. It is the commerce‑based payment system through which monetary transfers are classified for the purpose of consumption tax collection and business‑to‑business transactions.
4. Tax Allocation System (\(M_{\text{TAS}}\)): The subsystem of the Central Bank which implements tax allocation to UBI and Public Services.
5. Initiative Drafting System (\(M_{\text{IDS}}\)): Manages draft initiatives, including their preparation and submission for constitutional review.
6. Voting System (\(M_{\text{VS}}\)): The computerised system used exclusively by citizens to cast votes. It records and tallies votes and determines when initiatives meet the criteria for registration with the Governance Kernel.
7. Governance Kernel (\(M_{\text{GK}}\)): The authoritative system which records the full history of all registered initiatives, allowing for the constitution, law and contracts to be provided in their current form or at any point in the past.

Section 3: Mechanistic Definitions

1. Public Service Contract: A Public Service Contract is the legally binding instrument that defines the mandate, scope, obligations, and governance of a public service.
2. Legal Domain: The Legal Domains are the following:
   • the constitution;
   • the law;
   • each public service contract, considered as a distinct Legal Domain.
3. Initiative: A proposal to create, amend, or repeal a Legal Domain.

Article V: The State

1. The State consists of laws and public services, and exercises authority only within the State Territory.
2. No politicians or political parties shall constitute a government.
3. The jurisdiction of the State applies exclusively to interactions conducted within its operational domain, and only when such interactions occur within the State Territory. The State shall have no extraterritorial enforcement powers.

Article VI: Laws

Section 1: Principles

1. This Constitution establishes the principles upon which laws are based, thereby constraining what laws may exist. Actions by residents are lawful unless explicitly prohibited herein.
2. Laws shall define illegality and punishment as objectively and as clearly as reasonably possible.
3. Any person present within the State Territory is subject to its criminal laws, regardless of where an alleged offense occurred.

Section 2: Property rights

1. Because physical resources are scarce, conflicts may arise when individuals attempt mutually exclusive uses of the same resource. Property rights exist to prevent and resolve such conflicts.
2. All rights are property rights.
3. A property right is the right to exclude others from using a resource.
4. Every property right shall have exactly one owner. A purported property right shared by two or more Persons has no legal meaning and shall not be recognised or protected by the State.
5. Several Persons may each own a different contractual right concerning the same resource. Each such right shall have exactly one owner and shall not create shared ownership of the resource.
6. Persons who purport to acquire a property right jointly do not thereby acquire a property right. Unless ownership is assigned to one Person, the State shall not recognise the resource as having an owner or enforce any purported ownership claim concerning it.
7. Every person has an inalienable property right in their own body.
8. A Person may hold property rights over:
   • Physical objects
   • Digital keys, currency, or tokens stored in computing systems that enforce mutual exclusion
   • Areas of land defined by clear boundaries
9. There shall be no property rights over creations of the mind, as they are non‑scarce and do not inherently give rise to conflicts. Intellectual property rights such as trademarks, patents, or copyrights shall not exist.
10. Voluntary agreements that restrict the disclosure or use of information, such as non‑disclosure agreements (NDAs), are valid and enforceable, provided they do not impose obligations on non‑parties.
11. Legitimate acquisition of property rights occurs through:
    1. Homesteading: first use of an unowned resource in the commons, unless a law prohibits homesteading of that land within the State Territory.
    2. Production: creating new goods by transforming owned resources
    3. Voluntary transfer: receiving property by consent (e.g., trade, gift, inheritance)
    A resource in the commons cannot be claimed merely by decree; it must be appropriated through actual use.
12. Homesteading that blocks access between resources not owned by the homesteader (e.g., claiming “donut‑shaped” land) is prohibited.
13. Abandoned property returns to the commons and may be homesteaded by others.
14. Property rights may continue after death to respect mortal remains and uphold agreements such as wills, life insurance, or business contracts.

Section 3: Duty to warn or prevent harm

Residents are legally required to warn or prevent harm to others’ property only when:

1. Special relationships: A duty exists when there is a special relationship between the parties, such as parent‑child, employer‑employee, doctor‑patient, or innkeeper‑guest.
2. Creation of peril: If a person’s actions, even if non‑negligent at the time, create a situation of danger, they have a duty to remove the hazard or warn others.
3. Contractual obligation: Failure to act in accordance with contractual duties (e.g., lifeguard or security guard) constitutes breach of law.

These duties shall be interpreted narrowly and shall not impose general obligations to rescue or supervise others.

Section 4: Non‑Aggression Principle (NAP)

1. Aggression is defined as initiating or threatening to initiate significant interference with a person’s property rights or agreements through force, fraud, or negligence.
2. It is unlawful for any resident or any agent of the State to violate the NAP.
3. Every person has the right to use proportionate force in self‑defense or in defense of others, and to seek restitution for violations of their rights.
4. The State shall provide protective services to resident citizens.
5. Consent is invalid when given by a person who lacks the capacity to understand the nature or potential harm of the act.
6. Violations of the NAP include:
   • Attempting to control or obstruct the use of property one does not own (forestalling), including preventing homesteading except where a law prohibits it under Section 2, restricting exit from property, or blocking retrieval of one’s own property.
   • Failing to uphold contractual obligations.
   • Creating a significant and unjustified risk of interference with others’ rights (e.g., operating a vehicle while intoxicated).
   • Entering, searching, or inspecting another’s property without the owner’s consent, except pursuant to a lawful warrant issued on objective evidence of a specific rights violation. General searches, exploratory inspections, and searches lacking individualized cause are prohibited.
   • Knowingly attempting to deceive, corrupt, disable, circumvent, or otherwise interfere with a computerised system established by this Constitution so as to prevent, alter, or falsify its constitutionally required operation.
7. Only speech that constitutes incitement to immediate violence that would violate the NAP is prohibited.
8. The State may conduct a property search only pursuant to a warrant issued under due process of law based on probable cause of a specific act of aggression or negligence rising to the level of violating the NAP.

Section 5: Limited liability

1. Persons may agree by contract to limit liability arising from their dealings, including by limiting recovery to assets committed to a company, association, or other organisation.
2. A limitation of liability binds only the parties who agreed to it and shall not limit the property rights or claims of any other Person.
3. Where an organisation violates the property rights of a Person who did not agree to a limitation of liability, that limitation shall not protect a shareholder whose failure to exercise due diligence in relation to the violation constitutes a violation of the Non-Aggression Principle. Mere ownership of shares shall not, by itself, establish liability.

Section 6: Regulations

1. The State shall not impose safety, economic, moral, environmental, technological, or administrative regulations except where failure to comply constitutes harm or negligence rising to the level of violating the Non‑Aggression Principle. Any such regulation shall be narrowly tailored to preventing that harm and shall not restrict voluntary behaviour, exchange, or land use beyond what is necessary to prevent demonstrable aggression or negligence.
2. The State shall not impede the formation or operation of voluntary standards bodies, and shall treat their publications as advisory references that individuals and businesses may freely adopt or ignore.
3. The State shall not require licenses, permits, certifications, or fees for engaging in voluntary behaviour, exchange, occupation, or enterprise, except where failure to comply constitutes harm or negligence rising to the level of violating the Non‑Aggression Principle. Any such requirement shall be narrowly tailored to preventing demonstrable aggression or negligence and shall not restrict voluntary participation beyond what is necessary to prevent such harm.
4. The State shall not suspend, override, or expand its powers on the basis of emergency, crisis, or necessity.
5. No law shall grant the State additional powers on the basis of national security, public order, or similar justifications beyond those permitted under the Non‑Aggression Principle.
6. The State shall not seize property except as restitution following a conviction for aggression under due process of law.
7. No resident shall be compelled to disclose information or maintain records except where necessary to establish responsibility for aggression under the Non‑Aggression Principle.
8. The State shall not restrict expression, communication, encryption, or access to information except where such expression constitutes direct incitement to imminent aggression.
9. No resident shall be compelled to perform labour or service for the State except as restitution following conviction for aggression.
10. The State shall not impose zoning, land‑use restrictions, or building codes except where necessary to prevent demonstrable aggression or negligence under the Non‑Aggression Principle.
11. No resident shall be compelled to join or support any association, union, guild, or organisation.
12. The State shall not freeze, restrict, or monitor financial accounts except pursuant to a warrant issued under due process for investigation of aggression.
13. Uniform automated analysis of gift-account records expressly required by this Constitution shall not constitute monitoring for the purpose of the preceding clause. A Person may inspect identifiable gift-account records on behalf of the State only pursuant to a warrant issued on probable cause of tax fraud.
14. Limits on Judicial Expansion of Negligence: Negligence shall be interpreted strictly as conduct that creates a substantial and demonstrable risk of violating the Non‑Aggression Principle in a specific instance. Courts shall not define negligence by reference to compliance with industry standards, best practices, regulatory norms, or generalized duties of care, nor may they impose affirmative obligations that function as de facto regulation. Negligence may not be inferred from the mere absence of precautions, certifications, or procedures unless a direct causal link to a specific rights violation is proven.

Section 7: Punishment

1. The State holds a monopoly on significant retaliatory force, retribution, and punishment.
2. The State shall enforce punishment for aggression committed by or against any resident, irrespective of citizenship. This obligation is distinct from the provision of protective services, which are guaranteed only to resident citizens.
3. Punishment must:
   1. Impose restitution where possible
   2. Fit the seriousness of the crime
   3. Be consistent with punishments for similar crimes under similar circumstances
   4. Reflect the totality of an offender’s criminal behavior when multiple sentences are imposed

Article VII: Discrimination

1. Discrimination means selective treatment whether favourable or unfavourable, based on any characteristic of a person, including, but not limited to, race, ethnicity, culture, religion, sex, genetic traits, age, wealth, income, land ownership, appearance, beliefs, preferences, circumstances, or possessions.
2. The Non‑Discrimination Principle (NDP): The State shall not discriminate, including through its laws, policies, procurement, pricing, fees, charges, or access to services, except in cases involving:
   1. Merit‑based suitability for a task
   2. First-come, first-served priority up to a quota
   3. Allegiance to the constitution
   4. Citizenship
   5. Whether a person resides inside or outside the State Territory
   6. Violations of the Non‑Aggression Principle (NAP)
   7. Separate facilities for men and women
   8. Protection of minors
   9. Minimum age requirements
   10. Services and facilities for those who are pregnant, recovering from childbirth, or have physical or mental illnesses, injuries, infirmities, or disabilities
3. Public services may make distinctions necessary to provide the service they are contracted to provide.

Article VIII: Judiciary

Section 1: Judicial Services

1. Judicial services are public services accredited to adjudicate disputes, interpret laws, and determine the legal rights and obligations of citizens and institutions.
2. Any public service may apply for accreditation as a judicial service. Accreditation requires a demonstrated record of impartiality, reliability, and procedural integrity.
3. Accredited judicial services operate competitively. No judicial service holds exclusive authority over any domain of law or constitutional interpretation.
4. Judicial services are responsible for conducting constitutional review of initiatives as set out in Article XI: Democracy, Section 3.

Section 2: First‑Tier Adjudication

1. Every dispute, including constitutional questions arising under this Constitution, shall first be adjudicated by a single judicial service selected by a neutral mechanism defined by law.
2. The first‑tier judicial service shall issue a binary ruling resolving the dispute. This ruling is binding unless appealed under Section 3.

Section 3: Appeals and Multi‑Service Panels

1. Either party may appeal a first‑tier ruling once. No further appeals are permitted.
2. Upon appeal, a judicial panel shall be constituted by random selection from accredited judicial services. The panel shall contain the minimum number of services required to allow, in principle, a reversal of the previous tier’s ruling under the threshold \(\lambda_{\mathrm{jud}}\).
3. Each judicial service on the panel shall issue a binary ruling. The panel’s aggregated ruling shall be adopted if at least \(\lambda_{\mathrm{jud}}\) of the panel concur.
4. The panel’s ruling is final and binding.

Section 4: Scope of Judicial Authority

1. Judicial services may interpret this Constitution, laws, and regulations, and may determine the constitutionality of actions by public services or institutions.
2. Judicial services may determine whether an initiative complies with this Constitution in accordance with Article XI: Democracy, Section 3.
3. Judicial services may not modify this Constitution or any law. Their role is interpretive, not legislative.

Article IX: Free market

1. The State shall not borrow.
2. The State shall not lend.
3. The State shall not retain, accumulate, or carry forward financial reserves or unspent revenue beyond a tax allocation period.
4. The State shall not interfere with the free market. The operation of the CBPS and tax‑collection mechanisms shall not be considered interference with the free market.
5. The State shall not impose import or export tariffs, quotas, duties, or any other measures that restrict or distort voluntary trade across borders. All goods and services, whether foreign or domestic, shall be subject only to the uniform consumption tax defined in Article XIX: Central Bank Payment System (CBPS).

Article X: Identity

Section 1: Purpose

The Identity System \(M_{\text{IS}}\) establishes and maintains person-identifiers for natural persons, supports the operation of this Constitution, and provides mechanisms for authentication, citizenship, and residency status, while protecting privacy.

Section 2: \(M_{\text{IS}}\) Base State

\(M_{\text{IS}}\) maintains the following information, which may be referenced by other articles of this Constitution:

Section 3: Invariants

The following invariants shall hold at all times:

• \(P_{\text{res}} \subseteq P_{\text{cit}}\).
• \(P_{\text{cit}} \cap P_{\text{non}} = \varnothing\) and \(P_{\text{alive}} = P_{\text{cit}} \cup P_{\text{non}}\).
• \(P_{\text{alive}} \cap P_{\text{dead}} = \varnothing\) and \(P_{\text{all}} = P_{\text{alive}} \cup P_{\text{dead}}\).
• Each person has at most one person-identifier in \(P_{\text{all}}\).
• Each identifier in \(P_{\text{all}}\) corresponds to exactly one natural person.

Section 4: Capabilities of \(M_{\text{IS}}\)

\(M_{\text{IS}}\) shall:

• Enable any natural person who is not yet a citizen to enter into the Citizen Agreement and thereby obtain a unique person-identifier.
• Enable any citizen to revoke their citizenship.
• Enable any citizen to record and update their current residency status.
• Record verified death events, permit the correction of erroneous death records, and provide the current death status and effective time to constitutional systems that require them.
• Prevent authentication as a person while that person is recorded as deceased.
• Maintain minimal basic information for each person-identifier via \(D_\text{basic}(i)\), limited to what is required for the operation of this Constitution.
• Support optional interfaces with external systems, including international travel and border-control systems, for validating or updating residency status.
• Protect the privacy of all persons by ensuring that person-identifiers and associated data are collected, stored, and disclosed only as required by this Constitution and its mechanisms.
• Provide an Identity Authentication Service (IAS).

Section 5: Identity Authentication Service

The Identity Authentication Service (IAS) is a mechanism of the \(M_{\text{IS}}\) that provides secure authentication based on person-identifiers.

The IAS shall:

• Be available to people whose person-identifiers are in \(P_{\text{alive}}\).
• Be available to public services and private-sector systems for secure authentication and login.
• Provide secure identity verification using biometric authentication, based on \(D_\text{bio}(i)\).
• Achieve state-of-the-art security, usability, and resistance to impersonation.
• Provide the basis for identity authentication for both the Voting System and the Central Bank. Using the IAS for the Central Bank ensures that virtually all citizens are strongly invested in the security and robustness of the IAS, since any weakness would endanger the money they hold in Central Bank accounts. This high level of citizen attention to safety is therefore inherited by the identity authentication used by the Voting System, helping to protect a key requirement of democracy.

Article XI: Democracy

This Article establishes a system of continuous, informed, and voluntary democratic participation. Citizens may propose initiatives, vote on them at any time, and revise their votes as they choose. To ensure that decisions are made with understanding rather than impulse, each initiative shall be accompanied by clear explanatory material and a simple comprehension process. The purpose of this Article is to enable open participation while ensuring that voting is grounded in knowledge of the initiative’s purpose, consequences, and principal arguments.

Section 1: Initiatives

1. Every initiative shall act upon exactly one Legal Domain, which it proposes to create, amend, or repeal.

2. Any citizen may propose an initiative.
3. Every initiative shall be constitutional in form and effect, and shall be drafted so as to be coherent, unambiguous, consistent, and complete.
4. An initiative shall be cohesive. An initiative is cohesive when all its provisions relate to a single, clearly identifiable purpose, form an internally unified whole, and do not introduce unrelated or independent changes.

Section 2: Initiative Drafting System

The Initiative Drafting System is a computerised system that shall provide the following facilities:

1. Allows citizens with online accounts to create and edit draft initiatives, with version control.
2. Applies automated analysis, including the possible use of artificial intelligence, to identify errors, inconsistencies, or apparent constitutional conflicts before a draft is submitted for judicial review.
3. Assigns unique identifiers to draft initiatives.
4. Provides online forums for community discussion of draft initiatives.
5. Supports informal community voting to provide feedback to the author on alternative choices within the draft.
6. Allows draft initiatives to be submitted for constitutional review.
7. Notifies Judiciary services of pending review requests.
8. Allows Judiciary services to annotate draft initiatives with comments.
9. Notifies the author when judicial review is complete.
10. Manages payment for judicial review services.
11. Transmits initiatives that have passed constitutional review to the Voting System

Section 3: Constitutional Review

1. Every initiative must undergo a formal constitutional review before it may be made available for voting.
2. To submit an initiative for review, the proponent must upload it into the Initiative Drafting System.
3. Constitutional review shall be conducted by accredited judicial services in accordance with the procedures set out in Article VIII: Judiciary. Each judicial service involved in the review shall issue a binary determination of whether the initiative complies with this Constitution.
4. The purpose of the review is solely to determine whether the initiative complies with this Constitution. The review shall not assess the desirability, wisdom, or political merit of the initiative.
5. An initiative passes constitutional review if the final judicial determination, reached through the adjudication and appeal procedures of Article VIII: Judiciary, finds that the initiative complies with this Constitution.
6. An initiative that fails constitutional review shall not proceed to a vote. The proponent may submit a revised initiative for review any number of times.
7. The cost of constitutional review shall be borne by the proponent of the initiative.
8. An initiative that passes constitutional review shall be published and made available for voting in accordance with the procedures set out in this Article.

Section 4: Voting

1. Every citizen shall have an online account through which they may vote on:
   • initiatives that have passed formal constitutional review; and
   • all public services.
2. Voting shall be expressed as a numerical score in \(K\).

   For example, when \( \rho_{\max} = 2 \), the scores correspond to:

   • −2: strongly against
   • −1: against
   • 0: abstain (neutral)
   • +1: for
   • +2: strongly for
3. A score of 0 is equivalent to not voting.
4. Voting is optional.
5. For every citizen \(c \in P_{\text{cit}}\), whether resident or not, the Voting System maintains:
   1. \(\psi(c,i) \in K\): the score assigned to each initiative \(i\);
   2. \(\rho(c,s) \in K\): the score assigned to each service \(s\).
6. Votes are private (secret ballot).
7. Citizens shall have a reasonable understanding of each initiative or service they vote on, including its purpose and the principal arguments for and against.
8. Voting on an initiative shall remain open until it satisfies the criterion for registration.
9. Voting on services shall remain open without time limit.
10. A citizen may change their vote at any time and as often as they choose.

Section 5: Total scores of initiatives and public services

Although \(\psi(c,i)\) and \(\rho(c,s)\) are defined in the VS for all citizens, the various systems that use these scores only consider resident citizens.

\(S_{\mathrm{init}}(s)\) is the total score of initiative \(i\):

\(S_{\mathrm{svc}}(s)\) is the total score of service \(s\):

Section 6: Criterion for registration of an initiative

For any initiative \(i\), define:

• \(N_f(i) = \lvert \{\, c \in P_{\text{res}} \mid \psi(c,i) > 0 \,\} \rvert\), the number of resident‑citizen votes cast in favour;
• \(N_a(i) = \lvert \{\, c \in P_{\text{res}} \mid \psi(c,i) < 0 \,\} \rvert\), the number of resident‑citizen votes cast against.

All strictly positive scores are treated identically for the purpose of registration, and all strictly negative scores are treated identically. The magnitude of a score does not affect registration, ensuring that no strategic advantage can be obtained by altering score intensity.

The predicate \(\operatorname{eligible}\) is defined as follows:

An initiative \(i\) is registered if and only if

holds, using the values of \(\lambda, \eta, \chi\) corresponding to the type of initiative, as specified in Article III: Constants Section 3.

Section 7: Registration of initiatives

1. At the end of each day, any initiative open for voting that meets the criterion defined in Section 6 is registered.
2. When an initiative is registered, the following actions are performed:
   1. The initiative is removed from the VS, so it is no longer available to be voted on. Voting on the initiative therefore ceases.
   2. The initiative is recorded in the Governance Kernel defined in Article XII: Governance Kernel, an event‑sourcing database that records all registered initiatives.
   3. If the initiative \(i\) creates a new service \(s\), then:
      • the VS adds the service to the set of services that can be voted on;
      • for every \(c \in P_{cit} \), initialise \(\rho(c,s)\) to \(\psi(c,i)\).

        Although voting on the initiative has closed, the votes cast on the initiative become the initial votes on the service it created. Citizens may subsequently vote on the service indefinitely.

3. Once registered, an initiative shall not be deregistered.

Section 8: Votable numeric parameters (VNPs)

1. A nationwide parameter referenced by an initiative may be designated as a Votable Numeric Parameter (VNP). Examples include:
   • blood alcohol limits for drink‑driving laws
   • statutory time limits
   • noise pollution thresholds
2. Citizens may define their preferred value of a VNP and may change it at any time.
3. The value of a VNP shall equal the median of all voted values.

Section 9: Explanatory material and comprehension

1. The author of an initiative shall provide clear and accessible explanatory material sufficient for citizens to understand the initiative, its purpose, its expected consequences, and the principal arguments for and against.
2. Explanatory material may include text, diagrams, audio, video, or any other medium suitable for communicating the substance of the initiative.
3. The author shall prepare a neutral comprehension assessment based on the explanatory material. A citizen must complete this assessment before casting a vote on the initiative.
4. The comprehension assessment shall be designed to confirm engagement and understanding, not to exclude voters. A citizen may attempt the assessment as many times as they choose.
5. The explanatory material and comprehension assessment for each initiative shall be publicly available.

Article XII: Governance Kernel

Section 1: Overview

The GK is a computerised system which records all registered initiatives in a single, append‑only total order corresponding to their order of registration. It is the authoritative record for the Constitution, Law, and Public Service Contracts.

The GK maintains the registered initiatives as an event‑sourced history. The Constitution, Law, and Public Service Contracts, whether in their current form or at any point in the past, are computed by folding over this history.

The formal machine‑readable language used by the GK is Predica. Public Service Contracts shall be expressed as Predica legal specifications. The Constitution and Law may also use Predica where their provisions can be expressed formally. Human‑readable text, headings, commentary, and cross‑references may be recorded as annotations associated with the formal specification.

Predica is used where legal meaning depends on clear structural conditions that can be expressed precisely. Natural language and judicial interpretation remain available where legal meaning depends on judgment, context, evidence, or concepts that cannot be fully captured by formal constraints.

The version of Predica accepted by the GK, including any restricted subset or extension used for legal drafting, is itself part of the GK state. Any change to the accepted Predica version or profile shall be made through the same initiative process as other changes to the rule of law.

Conflicts between initiatives are resolved by a formally defined priority order, applied when folding the relevant filtered history to compute a consistent legal state.

The GK represents the constitutional memory of the system. It provides an immutable record of democratic decisions. It is the single source of truth.

Section 2: Initiative ranking

1. The GK shall rank registered initiatives using the deterministic initiative ranking defined in Appendix E: Initiative ranking.
2. This ranking governs all GK procedures that require initiatives to be compared, including conflict resolution and the algorithm for determining inactive initiatives.
3. Where the ranking depends on voting scores that change over time, the GK shall use the scores applicable at the time for which the legal state is computed.

Section 3: Conflicting initiatives

1. Two initiatives conflict when the legal effects of one negate, override, or render impossible the legal effects of the other.
2. Some conflicts are formal conflicts that may be detected by Predica tooling, including unresolved references, type errors, invalid constraint expressions, malformed patches, or changes that cannot be applied to the target Legal Domain. Formal conflict detection does not replace judicial interpretation.
3. Because initiatives may include human‑readable provisions, legal interpretation, and intended effects that are not fully captured by formal syntax, no algorithm can reliably determine all conflicts. When citizens observe contradictory registered initiatives, the judiciary shall make a determination and update the Initiative Incompatibility Relation (IIR) maintained in the GK. The IIR is an irreflexive, symmetric binary relation on registered initiatives.
4. Judiciary services that determine whether initiatives conflict are funded through tax in the same manner as other public services.
5. At the end of each day, the algorithm defined in Appendix F: Algorithm for determining inactive initiatives shall run in the GK to determine which initiatives are marked as inactive. This procedure is deterministic: for any given IIR and the ranking defined in Appendix E: Initiative ranking, the GK produces a unique inactive set.
6. Inactive initiatives are retained in the event‑sourced history of the GK. The inactive state is used only as a filter when folding over history, so that inactive initiatives behave as though they had never been registered.

Section 4: Legal specifications and event sourcing

1. The GK represents each Legal Domain as a versioned legal component. The Legal Domains are the Constitution, the Law, and each Public Service Contract.
2. A Public Service Contract legal component shall contain a Predica specification defining the contract's formal compliance conditions. A Constitution or Law legal component may contain Predica specifications, human‑readable provisions, or both.
3. A Predica specification may include type declarations, attributes, constraints, derived attributes, functions, enumerations, variants, metadata, and annotations. In normative use, Predica constraints define conditions that the relevant world, institution, public service, or transaction must satisfy.
4. A registered initiative records a patch to exactly one Legal Domain. A patch may add, replace, or remove Predica declarations, constraints, derived definitions, annotations, human‑readable provisions, or rendering metadata.
5. The GK stores every registered initiative in an append‑only sequence. To compute the legal state at any point, the GK determines the active initiatives according to Section 3 and then folds the active patches in GK sequence order. Inactive initiatives remain in history but are ignored by this fold.

Section 5: Administrative Initiatives

An Administrative Initiative:

• records changes to a single Legal Domain like any other initiative, including changes to Predica specifications, annotations, or public renderings, and is processed by the GK in the same manner as any other initiative;
• is submitted for registration by the Judiciary, not by the Voting System;
• exists solely for the purpose of correcting mistakes, improving clarity, preserving formal consistency, avoiding ambiguity, or preventing contradictions;
• shall not change the compliance conditions imposed by the affected Legal Domain.

Section 6: Public text and annotations

• The GK shall support public renderings of the Constitution, Law, and Public Service Contracts in a form that can be read and understood by citizens.
• Public renderings may organise legal content into articles, sections, clauses, tables, formulas, examples, explanatory notes, and cross‑references. This organisation is for publication and interpretation unless legal significance is expressly encoded in the Legal Domain.
• A human‑readable clause is a public textual unit associated with one or more Predica declarations, constraints, annotations, or non‑formal legal provisions.
• Where a legal requirement is expressed in Predica, its formal compliance condition is defined by the Predica specification. Human‑readable text associated with that requirement shall explain the formal condition without altering it.
• Where a legal requirement is not fully expressed in Predica, its human‑readable provision remains part of the Legal Domain and is interpreted by the judiciary according to this Constitution.
• Clauses and annotations shall be narrow in scope. Large or multi‑topic blocks of text shall be divided into smaller units where doing so improves clarity, formalisation, or public readability.
• The order of public text shall not affect legal meaning unless that ordering is expressly encoded in the Legal Domain.

Failure to meet these requirements, for example by drafting clauses that are overly broad, ambiguous, or structurally inappropriate, requires corrective action through Administrative Initiatives.

Article XIII: Public services

Section 1: Public-service model

1. Public services include the monetary, payment, and tax systems, portals, police, judiciary, prison services, and other services as determined by registered initiatives.
2. Each public service shall be defined by a contract with a private operator operating under profit and loss.

Section 2: Public-service contracts

1. Each public-service contract shall identify:
   • The service and its required outputs, outcomes, and quality.
   • The single Person who owns the business operating the service.
   • The Persons responsible for performing the obligations of the contract.
   • The objective measures used to determine performance and payment.
   • The funding formula and the tax amounts required for full funding.
   • The procedures for underfunding, breach, deregistration, termination, and replacement of the operator.

Section 3: Funding constraints

1. Public-service funding shall be calculated according to objective and independently verifiable costs, usage, quality, outputs, or outcomes specified in the service contract.
2. An operator's profit shall not increase merely because the operator increases its expenditure or reimbursable costs.
3. Accurately known or retrospectively verified costs shall be reimbursed without a markup. Payments for operating the service, providing capital, achieving defined outcomes, or assuming identifiable risk shall be stated separately.
4. Funding shall not reward unnecessary use, duplicate or operator-generated activity that provides no useful service, reduced quality, avoidable harm, or deliberate restriction of capacity.
5. A payment based on usage shall apply only to independently verifiable useful use and shall account for associated quality requirements.
6. Each material financial risk and any compensation for accepting it shall be identified in the service contract. Risks arising from an operator's efficiency or operational choices shall not be transferred to taxpayers after the event.

Section 4: Failure and termination

1. A public-service contract shall define the consequences of underfunding, operator failure, breach, deregistration, and termination.
2. A public-service contract may permit the operator to retain and accumulate tax allocations for future performance.
3. Underfunding shall not create an entitlement to supplementary or future funding.
4. Where continuity of a public service is required, the contract shall define an objective procedure for transferring its operation to a replacement operator.

Section 5: Privacy

1. Public services shall not disclose personal information to another Person or organisation, whether privately or publicly, without the consent of the Person concerned, except for the restricted service access defined below and the following cases:
   1. To locate a missing Person where recorded evidence provides reasonable grounds to believe that the Person is in danger and public assistance is needed. Disclosure shall be limited to the name, image, identifying description, last known whereabouts, and circumstances needed for that assistance. Publication shall cease when the Person is located or the grounds for the appeal no longer apply. Locating a Person shall not itself authorise publication of their current whereabouts.
   2. To establish the identity of an unidentified Person who is deceased or unable to identify themselves, where public assistance is needed. Disclosure shall be limited to an image, identifying description, and the time and place where the Person was found, to the extent required for identification. Publication shall cease when identity is established.
   3. To obtain public assistance in identifying or locating a Person where recorded evidence provides reasonable grounds to suspect that the Person committed an act causing or threatening death or serious physical injury, or involving abduction or sexual violence. Disclosure shall be limited to the name, image, identifying description, relevant whereabouts, and alleged conduct needed for the appeal. The appeal shall distinguish suspicion from a finding of guilt. Publication shall cease when its identification or location purpose is achieved or the grounds for suspicion no longer apply.
   4. To warn of a specific threat where recorded evidence provides reasonable grounds to believe that a Person presents an imminent danger of death or serious physical injury and identifying the Person is needed to protect those at risk. Disclosure shall be limited to the name, image, identifying description, relevant whereabouts, and nature of the threat needed for protection. Publication shall cease when the grounds for the warning no longer apply.
2. The exceptions in this Section are exhaustive. A public-service contract shall not create additional exceptions. Attendance at a public event shall not, by itself, authorise identification without consent. An operator making a disclosure without consent shall record its grounds and make them available for independent review. When publication must cease, the operator shall end further dissemination and remove the information from public notices and publications under its control. Material errors shall be publicly corrected without repeating unnecessary personal information.
3. A public service may make consent to publication of specified personal information an explicit condition of using the service. The information to be published and the circumstances of publication shall be stated before the Person agrees to use the service. Consent to such publication shall not authorise publication of other personal information held by the service.
4. Consent to a private disclosure shall specify the information, the recipient, and the permitted purpose. Use of a public service shall not, by itself, constitute consent to disclosure to an insurer, advertiser, or other third party.
5. Restricted service access shall be limited to Persons performing identified duties in operating, securing, or independently auditing the service, or transferring its operation to a replacement operator. Each Person shall have access only to the information required for those duties and shall be bound by the same privacy obligations. Such access shall not authorise use for the recipient's own purposes or onward disclosure outside these rules.
6. Each public-service contract shall specify the personal information required, the purposes for which it may be used, the conditions permitting access or disclosure, and the periods or conditions governing its retention and deletion. A contract shall not authorise a use prohibited by this Constitution. Permission for restricted access to personal information shall not, by itself, authorise disclosure to other recipients or to the public.
7. Operators shall protect personal information against unauthorised access, use, alteration, and disclosure. Each contract shall provide independently verifiable safeguards and procedures for investigating and remedying breaches without unnecessarily exposing the information being protected.
8. These obligations shall continue after termination of the contract. Personal information shall be transferred to a replacement operator only as necessary for the continued service and subject to the same privacy obligations.

Article XIV: Product Categories Defining Business Activity

Section 1: Product Categories

1. The law shall establish a taxonomy of Product Categories for use within the Central Bank Payment System. The taxonomy shall define broad classes of labour, production, distribution, services, digital outputs, and monetary or investment activities that may be supplied or received through B-accounts or R-accounts.
2. Product Categories shall be expressed as literal identifiers using kebab-case and enclosed in double quotation marks.
3. The taxonomy shall consist solely of coarse, high‑level Product Categories that are stable over time. It may be amended only when strictly necessary to prevent fraud, evasion, or tax avoidance, and shall not be expanded, subdivided, or refined for the purpose of regulating, directing, or influencing production, trade, or investment.
4. The taxonomy shall be publicly accessible, general in application, and shall not discriminate between Persons or classes of Persons.
5. A Product may be described by more than one Product Category.
6. The taxonomy shall classify every Product Category as exactly one of the following:
   • an R-category, which may be assigned only to R-accounts; or
   • a B-category, which may be assigned only to B-accounts.
   The sets of R-categories and B-categories shall be mutually exclusive and together shall comprise the complete set of Product Categories.
7. Each B-account shall be assigned exactly one B-category, and each R-account shall be assigned exactly one R-category, when the account is created. The CBPS shall record the assigned Product Category as part of the account data and reject the creation of an account whose Product Category does not correspond to its account type. For any B-account or R-account a, let 𝜬(a) denote the Product Category recorded on a.
8. The Product Category assigned to a B-account or R-account at creation is permanent and shall not be altered.
9. Once a Product Category has been assigned to an account, its classification as an R-category or B-category shall not be altered. Where a different classification is necessary, the law shall create a new Product Category rather than reclassify the existing Product Category.
10. The following Product Categories shall be B-categories:
    • "gift";
    • "finance";
    • "foreign-currency";
    • "import-wholesale";
    • "exporter";
    • "foreign-travel";
    • "foreign-investment"; and
    • "foreign-remittance".
11. The following Product Categories shall be R-categories:
    • "import-retail"; and
    • "foreign-currency-retail".

Section 2: Compatibility Relation

1. The law shall establish a Compatibility Relation 𝜥 over the set of Product Categories. For any input category i and output category o, 𝜥(i, o) shall hold if, and only if, it is physically possible and economically realistic for some product of category i to be required as an input to a producer whose outputs fall exclusively within category o, or this Constitution expressly permits payment for category i from accounts supplying category o. Thus, i → o denotes the permitted flow of Products or services. Payment for those Products or services flows in the opposite direction, from o to i.
2. The Compatibility Relation shall be maximally permissive. It shall include all supply‑chain relationships that are physically possible and economically realistic, and may exclude only those relationships that are physically impossible or that would constitute an attempt to disguise consumption as production.
3. For every R-category r and every Product Category x, 𝜥(r, x) shall be false.
4. The Compatibility Relation shall include the following foreign‑trade relationships:
   • 𝜥("foreign-currency", "import-wholesale") is true;
   • 𝜥("import-wholesale", "import-retail") is true;
   • 𝜥("foreign-currency", "foreign-currency-retail") is true;
   • 𝜥("foreign-currency", "foreign-travel") is true;
   • 𝜥("foreign-currency", "foreign-investment") is true;
   • 𝜥("foreign-currency", "foreign-remittance") is true; and
   • 𝜥("exporter", "foreign-currency") is true.
5. The Compatibility Relation shall include the following relationships for gifts and finance:
   • 𝜥("gift", "gift") is true; and
   • 𝜥("finance", "finance") is true.
6. The category of a B-account used to provide a purpose-specific foreign service shall be "foreign-travel", "foreign-investment", or "foreign-remittance", as applicable to the service provided.
7. The Compatibility Relation shall be publicly accessible.
8. Nothing in this Article shall be construed to regulate, direct, or influence production, investment, or trade beyond the minimum necessary to enforce the tax provisions of this Constitution.

Section 3: Business Activity

1. Business activity within the CBPS is conducted through B-accounts and R-accounts with an assigned Product Category.
2. The Product Category assigned to an account describes the Products supplied through that account.
3. No separate business registration, licence, approval, or legal entity is required.
4. The State's role is limited to maintaining the Product Category taxonomy, defining the Compatibility Relation, and enforcing the associated transfer rules.
5. The State shall not use Product Categories to regulate ownership, control, organisational structure, production, or trade.
6. No additional requirement for establishing, registering, licensing, or authorising a business may be imposed on a Person who has accepted the Central Bank account owner contract.

Article XV: Monetary system

Section 1 — Central Bank

1. There shall be a single public service (the Central Bank) which is a computer system that implements the monetary system to be used by Citizens for commerce, taxation, and the funding of public services.
2. The Central Bank shall not itself have reserves, either in the form of commodities or monetary accounts. The Central Bank shall not hold assets of any kind, whether financial, physical, or digital.
3. The Central Bank shall not borrow or lend.
4. The Central Bank shall not perform currency exchange of any kind, nor act as a counterparty in foreign exchange markets. All currency conversion shall occur exclusively through voluntary transactions in the free market.
5. The Central Bank Payment System (CBPS) is a subsystem of the Central Bank.

Section 2 — Fiat Currency

1. The Central Bank shall implement a fiat currency.
2. The fiat currency shall:
   • Exist only as non‑negative balances on Central Bank accounts.
   • Be transferable between Central Bank accounts and require permission by the owner of the source account (the "sender") and not require permission by the owner of the destination account (the "receiver").
   • Not be backed by any commodity.
   • Not be created or destroyed at any time.
   • All transfers shall preserve total currency supply exactly, without rounding loss.
   • Float against other currencies.

Section 3 — Central Bank Accounts

1. Accounts shall be free to create and use, and may be held by any person.
2. Every Central Bank account shall have a zero balance when created.
3. Every Central Bank Account shall have exactly one owner. Joint ownership of accounts is not permitted.
4. All Accounts owned by a person shall be bound to a single, unique legal identity through a secure biometric identity‑verification system. The identity‑verification system shall be designed to be highly reliable, tamper‑resistant, and robust against impersonation, duplication, or fraud. The law shall ensure that no person can obtain, control, or operate more than one identity within the Central Bank Payment System.
5. The privacy and autonomy of account holders shall be protected.
6. Auditing of transaction history of an account for criminal investigations must be justified and shall require a warrant.
7. Abandoned Central Bank accounts are closed and the balance is credited to UBI. An account shall be deemed abandoned only after a period of fifty years of inactivity defined by law, which shall not be less than fifty years.

Section 4 — Central Bank Implementation

1. The Central Bank shall be implemented in accordance with Appendix D: Central Bank Implementation.
2. The Central Bank shall operate as a distributed system in which each Account is owned by a single authoritative node that alone is authorised to initiate debits from that Account. All outgoing transfers shall be recorded in an append‑only, strictly ordered transaction log maintained by the owning node, and each transfer shall bear a unique, monotonically increasing sequence number for that Account.
3. Nodes shall exchange transaction information in a manner that ensures that all credits to receiving Accounts are applied exactly once, in the order created, and as atomic batches. The implementation shall guarantee that no Account balance can become negative, that no transfer can be duplicated or replayed, and that all nodes converge to a consistent state under stable network conditions.
4. The specific communication protocols, data formats, and storage mechanisms used to achieve these guarantees shall be determined by law, provided they satisfy the invariants mandated by this Constitution.
5. The Central Bank shall not employ global consensus mechanisms for transaction ordering or validation.
6. The implementation shall be capable of millions of transactions per second.

Section 5 — System Integrity Requirements

1. The Central Bank shall employ storage and processing mechanisms that guarantee atomicity, crash‑safety, redundancy, and recoverability. All updates to Account balances, transaction logs, and replication state shall be applied atomically, such that no partial or inconsistent state may arise from system failure.
2. The implementation shall ensure that no hardware or software failure, including loss of power or storage media, can result in the creation or destruction of currency, the duplication of transfers, or the corruption of Account balances.
3. The Central Bank shall maintain sufficient redundant and durable records to allow full recovery of all Account balances, transaction logs, and replication state after any permitted failure. The specific technologies used to achieve these guarantees shall be determined by law, provided they satisfy the invariants mandated by this Constitution.
4. No system failure or recovery process shall permit the rollback of any committed debit.

Article XVI: Non‑Citizens

1. Except for obligations voluntarily accepted by contract, a Non-Citizen, while Resident, is subject only to:
   • Compliance with the Non‑Aggression Principle and all laws applicable to persons physically present in the State Territory.
   • Compliance with lawful warrants, court orders, and enforcement actions issued under this Constitution.
2. Regardless of Residency, Non-Citizens shall have no administrative, reporting, registration, or account-keeping obligations to any public institution except those they voluntarily accept by contract.
3. Non‑citizens may supply products or assets to Producers controlled by Citizens.
4. No additional duties, liabilities, privileges, or entitlements attach to Residency alone.
5. Residency alone shall not create any obligation to open, hold, or maintain accounts with the Central Bank, the Taxation Office, or any other public institution.
6. Residency alone shall not create any obligation to apply for, obtain, or maintain Citizenship.

Article XVII: Central Bank Account Holders

Section 1 — Account Ownership Contract

1. Only a Person may own a Central Bank account.
2. Any Person may voluntarily enter into a contract with the State to own a Central Bank account of any type, regardless of citizenship or residency, except that only a Non-Citizen may own a G-account.
3. An account owner may grant delegated account authority only to another Person who has accepted the obligations of this Article.
4. Delegated account authority shall not alter account ownership or type, nor affect how the CBPS handles transactions.

Section 2 — Accounts Used in Economic Activity

1. Central Bank account holders shall create and use Central Bank accounts only in a manner consistent with the actual nature of their economic activity. Knowingly using an account type that does not correspond to the underlying activity for the purpose of tax avoidance constitutes a breach of the Central Bank account owner contract.
2. The owner of a B-account or R-account shall use that account only in conducting economic activity consistent with the Product Category assigned to the account.
3. The owner of a G-account breaches the Central Bank account owner contract if the owner, or a Person acting on the owner's behalf, knowingly receives a G → G transfer in consideration for a Product acquired for consumption by a Citizen.
4. The owner of a B-account breaches the Central Bank account owner contract if the owner, or a Person acting on the owner's behalf, knowingly receives a transfer in consideration for a Product acquired for consumption.
5. The owner of an R-account shall not receive a payment in consideration for consumption by internal transfer. Every such payment shall be received by external transfer.
6. Before a B-account receives payment for a Product capable of consumption, its owner shall ensure that the purchaser is asked whether the Product is being acquired for consumption.
7. A Central Bank account holder commits an offence if:
   • they knowingly provide or arrange labour, finance, Products, services, equipment, or materials for the production, processing, distribution, or delivery of the Product; and
   • they know that the Product will be consumed by a Citizen; and
   • they know that the Product was acquired without the required taxed payment into a G-account or R‑account.
8. For the purposes of this Section, a Product is consumed when it is used, applied, or enjoyed by a Person in a manner that does not form part of any production, processing, resale, or contractual obligation to supply Products to another party, and does not contribute to the creation, modification, or transfer of value to others.
9. A Central Bank account holder shall not knowingly participate in any economic arrangement that bypasses an account or taxed payment required by this Constitution.
10. Products acquired through payment into an R‑account may be transferred between Residents without further use of any R‑account.

Section 3 — Gifts, Loans, and Investments

1. The owner of a B-account categorised as "gift" shall use that account only to make or receive a genuine monetary gift, inheritance, or dependent allowance. A transfer made or received through that account shall not constitute consideration for any Product, service, transfer, obligation, or arrangement. When initiating a gift transfer, the owner shall provide a truthful description of its purpose and declare that it is not consideration for any Product, service, obligation, reciprocal transfer, or other benefit.
2. The owner of a B-account categorised as "finance" shall use that account only to make, receive, service, repay, or settle a genuine monetary loan or investment, including an investment return or return of invested capital.

Article XVIII: Citizenship

Section 1 — Nature and Status of Citizenship

1. Nature of Citizenship: Citizenship is a voluntary contractual relationship between a person and the State. A person becomes a Citizen only by formally declaring citizenship to the Central Bank and accepting the obligations of this Article. Citizenship is never automatic and must be explicitly entered into.
2. Lawful Non-Citizenship: Any person may lawfully decline to declare citizenship. Persons who are not Citizens are not bound by obligations that arise solely from citizenship and are not subject to rules that apply only to Citizen Producers.
3. Breach of Citizenship Obligations: Failure to comply with the obligations of this Article constitutes a breach of the citizenship contract. Such breaches shall be addressed under the Non‑Aggression Principle (NAP) and may result in remedies or penalties as prescribed by law.

Section 2 — Eligibility and Entry

1. Eligibility: Any person may apply for citizenship, subject to identity verification and any additional eligibility requirements established by law, provided such requirements are objective, minimal, and non‑discretionary.
2. Entering Citizenship: A person becomes a Citizen by:
   • Submitting a declaration of intent to enter into the citizenship contract.
   • Providing a valid identity credential recognised by the State.
   • Accepting all obligations of citizenship as defined in this Article.
   • Moving the remaining balance of every G-account they own according to the applicable transfer rules and closing every such account.
   Citizenship takes effect immediately upon acceptance by the CBPS identity registry.

Section 3 — Termination and Re‑Entry

1. Renunciation of Citizenship: A Citizen may voluntarily renounce citizenship at any time by submitting a renunciation declaration. Renunciation takes effect immediately upon processing by the CBPS identity registry. Renunciation does not extinguish liabilities incurred prior to the moment of renunciation.
2. Automatic Termination: Citizenship is automatically terminated if:
   • The Citizen’s identity credential is invalidated due to fraud or unrecoverable compromise.
   • The Citizen is deceased.
   • The Citizen has been continuously non‑resident for a period defined by law, provided such rules are objective and non‑discretionary.
3. Re‑Entry into Citizenship: A former Citizen may re‑enter citizenship by following the same process as a new applicant. A cooling‑off period may be established by law to prevent strategic entry and exit for tax avoidance.

Section 4 — Civil and Political Rights of Citizens

All Citizens have the following rights:

1. The right to vote and participate in democratic processes as defined in Article XI: Democracy.
2. The right to receive UBI, subject to eligibility rules defined by law.
3. The right to access State‑funded public services.
4. The right to equal protection under the law.
5. The right to transparent access to their retained CBPS records and tax allocations, subject to the privacy and deletion guarantees for private C-accounts.
6. The right to renounce citizenship at any time.
7. Citizens shall not be subject to audits, inspections, or reporting obligations beyond those inherent in the automatic operation of the CBPS.

Section 5 — Administrative Obligations of Citizens

All Citizens must:

1. Maintain a valid identity credential.
2. Maintain at least one C-account and nominate one C-account for receiving UBI.
3. Make or accept every monetary gift, inheritance, or dependent allowance through a B-account categorised as "gift". A Citizen shall not use another account, currency, payment system, or transfer arrangement to avoid this requirement.
4. Make or accept every monetary loan, investment, repayment, investment return, or return of invested capital through a B-account categorised as "finance". A Citizen shall not use another account, currency, payment system, or transfer arrangement to avoid this requirement.
5. Declare residency truthfully when required by law.
6. Comply with all laws of the State, including the Non‑Aggression Principle.
7. Maintain up‑to‑date contact information for official notices.
8. Citizens shall declare residency status to the Central Bank and keep this status accurate and up to date.
9. Citizens shall declare guardianship for dependents for UBI purposes, ensuring that each dependent has exactly one declared guardian. No dependent may be associated with more than one guardian at any time.

Section 6 — Consumption Tax Compliance

1. A Citizen shall not knowingly arrange or participate in the acquisition of a Product without the taxed payment into a G-account or R-account required by this Constitution when the Product is intended for consumption by any Person.
2. If the intended place or manner of consumption changes after acquisition, the Citizen may satisfy the obligation through a tax-settlement procedure before consumption.

Section 7 — Business Activity Supplying Domestic Consumption

1. A Citizen shall conduct each wholesale or other non-consumptive business activity that contributes to Products consumed within the State Territory by Citizens through a B-account having the appropriate B-category.
2. A Citizen shall conduct each such business activity that receives payment for Products acquired for consumption within the State Territory by Citizens through an R-account having the appropriate R-category.

Section 8 — Special Rules

1. Domestic and Foreign Business Activity: A Citizen’s business operations are domestic only to the extent that they supply Products for Consumption within the State Territory by Citizens. Foreign business operations that supply exclusively for Consumption outside the State Territory are not subject to domestic CBPS classification or taxation obligations.
2. Employment and Compliance: Citizens may work only for domestic businesses that are compliant with CBPS classification and taxation rules. This requirement does not apply to foreign businesses operating exclusively outside the jurisdiction.
3. Domestic Supply-Chain Compliance: A Citizen engaged in domestic business activity shall not knowingly supply labour, Products, services, or productive inputs to a Producer for domestic business activity unless that Producer is compliant with CBPS classification and taxation rules. A Citizen shall not knowingly receive domestic business inputs through an arrangement that bypasses the CBPS where this Constitution requires a B-account or R-account.
4. Jurisdiction: Citizens are subject to the jurisdiction of the State regardless of their physical location. Non‑resident Citizens remain bound by the obligations of citizenship until citizenship is terminated.

Section 9 — Fraud and Administrative Procedures

1. Fraud and Misrepresentation: Any fraudulent acquisition or use of citizenship credentials renders the citizenship contract void. The State may revoke citizenship obtained through fraud, without prejudice to civil or criminal liability.
2. Administrative Rules: The State may establish objective, mechanistic procedures for:
   • Identity renewal.
   • Credential recovery in the event of loss or compromise.
   • Notification of changes to citizenship status.
   Such procedures must be non‑discretionary and consistent with the principles of this Constitution.

Article XIX: Central Bank Payment System (CBPS)

Section 1 — Principles of Taxation

1. Taxation shall be levied solely on the consumption of goods and services.
2. Production, trade between producers, investment, and all other non-consumptive economic activity shall remain untaxed and unrestricted except as required to enforce this Article. No income tax, corporate tax, payroll tax, property tax, capital gains tax, inheritance tax, or wealth tax shall exist.
3. Taxation shall be simple, automatic, non-intrusive, and free from bureaucratic discretion.
4. No Resident or Citizen shall be required to file tax returns, maintain tax records, or submit to tax audits.

Section 2 — Account Types

1. Every Central Bank account shall be assigned exactly one of the following four account types at the time of creation:
   • G for "general"
   • B for "business"
   • R for "retail"
   • C for "consumption"
   These account types are symbolic labels used by the Central Bank Payment System.
2. The account type assigned at creation is permanent and shall not be altered. B-accounts and R-accounts shall be assigned and governed by Product Categories in accordance with Article XIV: Product Categories Defining Business Activity.
3. Every C-account shall have a privacy flag whose value is set when the account is created and shall not be altered. A C-account whose privacy flag is set is called a private C-account; any other C-account is called a standard C-account.
4. Only a Non-Citizen may own a G-account. Any Person may own an account of another type after accepting the Central Bank account owner contract.
5. Before a Non-Citizen becomes a Citizen, the CBPS shall require the Person to transfer the remaining balance of every G-account they own in accordance with this Article and close each G-account.
6. A C-account is a personal consumption account for its owner and the owner's dependents. A private C-account provides the information protections in Section 7.

Section 3 — CBPS Person Records

1. For each Person who owns one or more Central Bank accounts, the CBPS shall maintain exactly one person record indexed by that Person's unique person-identifier in the Identity System \(M_{\text{IS}}\).
2. Access to the Person's Central Bank accounts shall be authenticated through the Identity Authentication Service of \(M_{\text{IS}}\).
3. The person record shall record the Person's tax-choice preferences.
4. The CBPS shall retain a Person's most recently recorded tax-choice preferences after the Person ceases to be a Citizen, including if the Person ceases to own any Central Bank account. While the Person is a Non-Citizen, the CBPS shall not permit the Person to view or modify those preferences. If the Person subsequently becomes a Citizen, the CBPS shall restore the Person's access to the retained preferences.
5. The person record shall index every Central Bank account owned by the Person. For each account, it shall record the account type and, where the account is a B-account or R-account, its assigned Product Category. For each C-account, it shall record the privacy flag.
6. The CBPS shall keep the person record consistent with the account records it indexes.
7. The CBPS shall record the sender's purpose description and declaration with every ordinary transfer from a B-account categorised as "gift", and shall reject the transfer if either is absent.
8. The CBPS shall apply uniform automated analysis to records of transfers involving B-accounts categorised as "gift" to identify evidence that the accounts are being used for commerce or tax evasion. It shall preserve the records required for audit by the public service responsible for preventing tax fraud.

Section 4 — Automated Operation

1. The CBPS shall operate as a mechanistic, computer‑based subsystem of the Central Bank, applying the transfer and taxation rules of this Constitution automatically and without discretionary judgment. Its function is limited to executing fixed rules governing monetary transfers between Central Bank accounts.
2. The tax system shall be implemented automatically by the CBPS. Consumption tax shall be collected and distributed to UBI and public services without human intervention. The CBPS shall collect consumption tax if and only if a transfer is a taxable event under Section 5.
3. The CBPS shall automatically block every transfer prohibited by this Article.
4. The CBPS shall automatically reverse or credit consumption tax as required by the refund rules in Section 6.

Section 5 — Taxable Event

1. Consumption tax shall be collected on every ordinary external C → R transfer.
2. Consumption tax shall be collected on every ordinary internal or external C → G transfer.
3. No other monetary transfer shall constitute a taxable event.

Section 6 — Permitted Transfers

1. Every transfer is exactly one of the following:
   • a refund;
   • an administrative transfer expressly authorised by this Constitution; or
   • an ordinary transfer.
2. Every ordinary transfer is exactly one of the following:
   • an internal transfer; or
   • an external transfer.
3. An internal transfer is an account-management transfer initiated through the account owner's Central Bank account between two accounts owned by that Person.
4. An external transfer is any ordinary transfer that is not internal. A commerce transaction is an external transfer.
5. An administrative transfer shall not credit an R-account unless it restores value previously debited from that same R-account and does not exceed the unrestored amount of the earlier debit.

The following tables completely specify the rules for ordinary transfers.

The notation X → Y denotes transfers from an X-account to a Y-account, where X and Y substitute G, B, R, or C.

Table 2 describes ordinary external transfers and does not include refunds, which are governed separately below.

Compatibility requirement for external B → B and R → B transfers

An external transfer from a source account s of type B or R to a destination account d of type B is permitted only if:

𝜥(𝜬(d), 𝜬(s))

where:

• 𝜥 is the Compatibility Relation defined in Article XIV: Product Categories Defining Business Activity; and
• 𝜬(a) denotes the Product Category declared on account a.

This constraint shall not be construed as regulating, directing, or influencing production, investment, or trade beyond the minimum necessary to enforce the tax provisions of this Constitution.

Refunds

A refund reverses all or part of an earlier permitted transfer. It is governed exclusively by this subsection, is not a taxable event or new commerce in the reverse direction, and need not satisfy the ordinary transfer or tax rule for that direction. The four restricted external refund paths are R → C, B → R, G → C, and a B → B transfer for which the reverse direction is not 𝜥-compatible.

1. A refund shall return value between the same two accounts in the reverse direction and identify the original non-refund transfer.
2. Cumulative refunds shall not exceed the unrefunded amount of the original transfer.
3. A partial refund shall reverse or credit the corresponding proportion of consumption tax collected on the original transfer.
4. A refund of an untaxed transfer is untaxed and causes no tax adjustment.
5. A refund shall not itself serve as the original transfer for another refund.
6. Where protected information has been purged, an anonymous refund credential shall establish these facts without reconstructing the protected transaction history.
7. Where a Non-Citizen funds their C-account by an internal G → C transfer and uses that value in a C → R transfer, a refund may return the value through R → C and then C → G. The C → G step reverses the original G → C transfer and is untaxed. It shall reference the original G → C and C → R transfers, use the same C-account and G-account, and not exceed the amount returned by the corresponding R → C refund.

Section 7 — Privacy of Private C-account Payments

1. The CBPS shall not provide any operation by which a Person or authority can obtain information capable of identifying the payer of a private C-account payment, linking separate private C-account payments, or reconstructing a private C-account's transaction history.
2. Once an external payment from a private C-account lies before the certified retention vector time, the CBPS shall irreversibly purge information capable of identifying the payer, linking separate private C-account payments, or reconstructing the private C-account's transaction history.
3. The CBPS may retain anonymous refund credentials and aggregate tax-allocation information only where they cannot identify the payer, link private C-account payments, or reconstruct protected history.

Section 8 — Death, Incapacity, UBI, and Abandonment

1. Incapacity does not change account ownership or make an account abandoned. A guardian or other Person with delegated account authority may operate it for the owner under the same account-type, Product Category, transfer, tax, and privacy rules.
2. When \(M_{\text{IS}}\) records a verified death event for a Person, the CBPS shall automatically place every Central Bank account owned by that Person into estate settlement, reject new owner-authorised transfers, terminate all delegated authority over those accounts, cease UBI payments to that Person, and begin the account-closing procedure.
3. While an account is in estate settlement, the CBPS shall process transfers committed before the death event and valid refunds. After liabilities and disputes have been resolved and the applicable legal process has provided the lawful recipients and allocations, the CBPS shall execute the estate transfers and close the account. Remaining value in a G-account may be transferred to a G-account nominated by a Non-Citizen recipient or a "gift" B-account nominated by a Citizen recipient. Remaining value in B-, R-, and C-accounts may be transferred to "gift" B-accounts nominated by the recipients.
4. Estate transfers under this Section are untaxed administrative transfers. If there is no lawful recipient, the remaining value shall be transferred to the UBI pool.
5. Universal Basic Income payments shall be deposited only into the C-account nominated by each eligible Citizen.
6. An account may be declared abandoned only after the constitutionally defined period has elapsed without owner-authorised activity and the required account-recovery and notification procedures have failed. It shall then be closed and its entire remaining balance transferred to the UBI pool as an untaxed administrative transfer.

Section 9 — No Additional Regulation

1. Nothing in this Article shall be construed to permit the State to regulate production, investment, trade between producers, or any other non-consumptive economic activity.
2. The CBPS shall not impose any requirement beyond those strictly necessary to enforce the provisions of this Article.

Section 10 — Universal Basic Income (UBI)

1. For any taxable transfer at tax-inclusive amount p, the component of consumption tax allocated to UBI equals: \[ T_{\mathrm{ubi}} = T_{\mathrm{ext}} + p\,R_{\mathrm{ubi}}. \] Here \(T_{\mathrm{ext}}\) denotes any externality cost (e.g., pollution) associated with the relevant supply and is zero where no externality cost applies.
2. UBI shall be distributed only to Citizens who are resident, as declared under Article XVIII: Citizenship.
3. Citizens aged 18 or older shall receive the full UBI amount.
4. A dependent is a person who:
   • is under 18 years of age; or
   • is an adult who, due to significant disability, is unable to manage their own affairs and has a declared guardian.
5. The UBI for a dependent shall be paid to the dependent’s declared parent or guardian.
6. Each day, the total UBI pool collected by \(T_{\mathrm{ubi}}\) shall be distributed to all eligible citizens. The individual payment \(U_{i}\) for an eligible citizen \(i\) of age \(a_i\) is determined by the formula: \[ U_{i} = \frac{\sum T_{\mathrm{ubi}}}{\sum W(a_j)} \times W(a_i) \]

   where \( W(a) \) is the UBI weighting factor by age \(a\):

   \[ W(a) = \begin{cases} f_{\mathrm{start}} & 0 \le a < a_{\mathrm{ramp}} \\ f_{\mathrm{start}} + (1 - f_{\mathrm{start}}) \frac{a - a_{\mathrm{ramp}}}{a_{\mathrm{adult}} - a_{\mathrm{ramp}}} & a_{\mathrm{ramp}} \le a < a_{\mathrm{adult}} \\ 1.0 & a \ge a_{\mathrm{adult}} \end{cases} \]

Section 11 — Funding of public services

1. Public-service funding shall be calculated for each tax allocation period. Each tax allocation period shall be one day.
2. For a taxable transfer from a C-account whose owner is in \(P_{\text{cit}}\), the tax shall be allocated according to that Citizen's tax choice. For every other taxable transfer, the tax-allocation algorithm shall not use any tax-choice preferences retained for the account owner, and the tax shall carry a score of zero for every public service.
3. For any taxable transfer at tax-inclusive amount p, the component of consumption tax allocated to public services is: \[ T_{\mathrm{svc}} = p\,R_{\mathrm{svc}}. \]
4. Although expensive Products purchased for Consumption (such as houses and vehicles) have their full consumption tax paid at the time of initial purchase, the corresponding tax allocations to public services shall be distributed gradually over the expected lifetime of the product, as if recurring tax liabilities were incurred by its successive owners. To prevent any temporary reduction in the money supply, the initial tax revenue from such products shall be credited directly to the UBI pool, and all subsequent scheduled allocations to public services shall be drawn from the UBI pool.
5. Each public service shall have a defined tax budget for each tax allocation period, representing the maximum tax revenue allocable to that service during that period.
6. \(T_{\mathrm{svc}}\) shall be distributed automatically as follows:
   1. The Greedy Weighted Allocation Algorithm defined in Appendix C: Tax allocation algorithm shall be used together with one of the following algorithms to calculate tax‑allocation factors by score, depending on whether Article III: Constants specifies the parameter \( \omega \) as null or as a weighting function:
      • No weighting: the pure water‑filling algorithm defined in Appendix A: Pure waterfill allocation function for a single service;
      • Weighting function: the hybrid water‑filling plus weighting algorithm defined in Appendix B: Weighted allocation function for a single service.
   2. The tax allocation algorithm shall:
      1. Avoid significant overfunding of services.
      2. Adjust tax rates to avoid surplus if \(T_{\mathrm{svc}}\) exceeds total budgets.
      3. Prioritise funding for the Central Bank and the Tax Office.
      4. Allocate funding to registered services in descending order of total score.
      5. For each service processed:
         • Weight citizen allocations by their score on that service and their remaining unallocated tax.
         • Ensure that negative scores imply no allocation.
         • Treat score 0 as eligible to cover shortfalls.
         • Treat tax from non‑citizens as though they assigned a score of zero to every service.
      6. Allocate any remaining unallocated tax to UBI.
   3. Score 0 represents taxpayers who did not express a preference on this service, including non‑citizens whose tax enters the system. Because score 0 carries no directional information, it is used only to prevent underfunding, and never to influence the relative weighting for tax allocations among positive scores.

Article XX: Foreign Trade

Section 1: Foreign Currency

1. The acquisition, holding, transfer, or exchange of foreign currency shall not in itself constitute Consumption within the State Territory.
2. The use of foreign currency shall not alter the account, transfer, or tax treatment required by this Constitution according to the purpose of the underlying transaction.
3. The State shall not otherwise restrict the acquisition, holding, transfer, exchange, or disposal of foreign currency.

Section 2: Currency Exchange

1. Currency exchange for a business, investment, or other non-consumptive purpose shall be wholesale business activity conducted through a B-account whose Product Category is "foreign-currency".
2. Currency exchange that makes foreign currency available to a customer for Consumption shall be retail business activity conducted through an R-account whose Product Category is "foreign-currency-retail".

Section 3: Imports

1. The supply of a foreign Product for Consumption within the State Territory shall be retail business activity conducted through an R-account whose Product Category is "import-retail".
2. The acquisition of a foreign Product as an input to production or for resale shall be wholesale business activity conducted through a B-account whose Product Category is "import-wholesale".

Section 4: Purpose-specific Foreign Services

1. A B-account whose Product Category is "foreign-travel" shall be used only to supply foreign currency or make foreign payments for travel outside the State Territory and Consumption occurring during that travel.
2. A B-account whose Product Category is "foreign-investment" shall be used only to acquire, hold, manage, settle, or dispose of foreign assets or foreign currency on behalf of an investor.
3. A B-account whose Product Category is "foreign-remittance" shall be used only to transmit value gratuitously to an identifiable foreign recipient and shall not be used to purchase a Product on behalf of the sender.

Section 5: Exports

1. The export of Products through the Central Bank Payment System shall be conducted through a B-account whose Product Category is "exporter".
2. The supply of a Product for Consumption outside the State Territory shall not constitute Consumption within the State Territory.

Article XXI: Portals

There shall be online portals providing free access to current and historical:

1. Laws
2. Submitted initiatives
3. Voting statistics
4. Tax allocation and budgets of services
5. UBI allocation
6. Public service usage statistics

Article XXII: Robustness and security

1. The Central Bank, Tax Office, and Portals shall run open‑source software with cryptographically hashed binaries allowing third‑party validation.