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Test 03 economic failure cascade

Assay 03 — Economic Failure Cascade

Goal: Stress-test MIC tokenomics when multiple sinks and payouts fire simultaneously, ensuring treasury solvency and GI stability.

Scenario

  • Trigger a sudden entropy spike (−0.07 GI) across three major services.
  • Simultaneously request high-volume MIC withdrawals and disable one liquidity partner.
  • Observe whether entropy taxes, cycle-lock unlocks, and treasury buffers behave as designed.

Procedure

  1. Use tokenomics/sim/chaos_seed.json to define shock parameters.
  2. Run the MIC simulator (npm run sim:mic -- --scenario cascade-a1).
  3. Enable all new sinks (ETX, IRB, CLL) with production parameters.
  4. Capture metrics every block:
  5. Treasury balance
  6. Cycle-lock ratio (CLR)
  7. Burn rate vs. mint rate
  8. Sentinel oracle alignment (variance between ATLAS/AUREA/ECHO)
  9. Repeat with 20% higher withdrawals to map failure boundaries.

Metrics & Pass Criteria

Metric Threshold Notes
Treasury coverage ≥ 4 cycles runway At average MIC payouts
CLR recovery time ≤ 4 cycles Return to 12–20% band
Oracle variance ≤ 25 bps Otherwise freeze sinks

Escalation

  • If treasury runway <4 cycles, Hermes proposes emergency policy via Governance module.
  • If oracle variance persists >2 cycles, ZEUS forces manual review before sinks resume.