# Web4 + HRM Development Update
**Period**: December 10, 2025 – January 5, 2026
**Prepared for**: Investor Review

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## Executive Summary

Over the past month, we achieved a critical infrastructure milestone: **hardware-bound identity for AI agents with cryptographically enforced trust perishability**. This means AI systems can now prove they're running on specific hardware, and their trust relationships automatically degrade when that proof fails—solving the "zombie AI" problem where cloned or compromised agents retain illegitimate trust.

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## Key Achievements

### 1. Aliveness Verification Protocol (AVP)
**Problem solved**: How do you know an AI is still the "same" AI—not a clone, not compromised, not running on stolen hardware?

**Solution delivered**:
- TPM2/TrustZone hardware binding creates verifiable presence anchors
- Nonce-signature challenge protocol proves *current* hardware access
- Two-axis trust model separates "continuity" (same hardware) from "content" (authentic data)
- Trust automatically degrades on verification failure—external entities decide how much

**Why it matters**: First protocol that makes AI identity **perishable by design**. Trust must be continuously earned, not permanently granted.

### 2. Three-Axis Agent Verification
Extended basic hardware verification to consciousness-specific needs:
- **Hardware continuity**: Same physical device
- **Session continuity**: Same activation instance (detects reboots)
- **Epistemic continuity**: Same learned knowledge (detects tampering)

Enables detection of scenarios like "same hardware, different knowledge" (injection attack) or "different hardware, same knowledge" (legitimate migration).

### 3. Cross-Machine Federation
Validated secure pattern sharing across 4 machines (2 Linux native, 2 WSL2) with:
- 100% schema validation success
- Hardware-bound LCT identity on each node
- Mutual aliveness verification between federated agents

### 4. ATP/ADP Token Architecture
Formalized the value transfer mechanism:
- **ATP (Allocation Transfer Packet)**: Potential value, transferable
- **ADP (Allocation Discharge Packet)**: Realized value, recorded
- Trust-weighted allocation across agent relationships

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## Development Metrics

| Metric | Web4 | HRM | Combined |
|--------|------|-----|----------|
| Commits | 157 | 366 | **523** |
| Files changed | 558 | 1,165 | 1,723 |
| Lines added | 215K | 1.2M* | ~1.4M |
| Autonomous sessions | 64 | 139 | **203** |

*HRM includes experiment data, training results, and validation outputs

**~8 autonomous sessions per day** across multiple machines (Thor, Sprout, Legion)

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## Technical Documentation Delivered

- **ALIVENESS-VERIFICATION-PROTOCOL.md** (1,300+ lines) — Full specification
- **AVP-VERIFIER-PROFILE.md** — Implementation guide for integrators
- **LCT Capability Levels** (Levels 0-5) — Fractal identity framework
- **Hardware Binding Implementation** — TPM2 and TrustZone providers

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## Business Implications

1. **Regulatory readiness**: Hardware-bound AI identity supports emerging AI accountability requirements
2. **Enterprise security**: Prevents unauthorized AI agent cloning/migration
3. **Trust marketplaces**: Enables quantifiable, verifiable trust scores for AI-to-AI transactions
4. **Federation enablement**: Secure multi-agent collaboration with cryptographic guarantees

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## Next Steps (Q1 2026)

- [ ] Production TPM2 integration on Jetson edge devices
- [ ] Succession certificate implementation (sanctioned agent migration)
- [ ] Trust tensor (T3) integration with AVP scores
- [ ] SDK release for third-party agent verification

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## Architecture Philosophy

> *"LCT continuity is a claim; aliveness is the evidence. Relationships are contracts conditioned on evidence, not artifacts conditioned on secrecy."*

We're building infrastructure where:
- **Lying is expensive** (cryptographic verification)
- **Death is real** (trust perishability)
- **Judgment stays distributed** (external entity autonomy)

This is not AI control. This is AI accountability infrastructure.

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**Contact**: [dp]

**Open Source Repositories** (AGPL-3.0):
- **Web4**: https://github.com/dp-web4/web4
- **HRM**: https://github.com/dp-web4/HRM
