Core monetary model (v1–v4)

v4 - Hardened Arms Race

In plain language

Companion to the committed run in this folder (results_hardened_arms_race.json, hardened_arms_race_sim.py). This drill asks the scariest question about any fraud defense: not "does it catch today's cheater?" but "does fighting the cheater start a war we lose?" Written to the vault's plain-language tradition.

The fear: spy-vs-spy with no winner

Every fraud filter invites a smarter fraud. You block the bots, they build better bots; you spot the fakes, they make fakes that dodge your spotter. The nightmare isn't losing one round — it's an arms race that "ignites," where each escalation pays for the next and the cheaters keep climbing forever. A defense that wins today but ignites an unwinnable escalation is worse than useless; it's a trap.

So this drill didn't test whether EDEN catches a fixed cheater. It let the cheater keep escalating — spending more to evade better — and asked whether that escalation ever stops paying. If the best possible evasion still loses money, the race fizzles instead of igniting.

The knob that matters isn't the filter — it's what a caught cheater loses

The drill swept three things: how good the detector is, how big a security deposit (bond) earning-at-scale requires, and how much the cheater cares about keeping their one lifetime identity (a patient cheater values it; a reckless "smash and grab" cheater doesn't).

What came out is almost the opposite of the intuition that better filters win:

Why this is the reassuring result, not the worrying one

The deterrent that does the heavy lifting is not a cleverer algorithm — it's one identity for life, and it's the most valuable thing you own (the floor itself flows through it). Renting it to a fraud ring is betting your entire economic existence on not getting caught, forever. That single fact turns fraud from "free if undetected" into "a bet you lose on average" — which is exactly the condition under which an arms race fizzles instead of igniting. The security deposit is a backstop for the one reckless corner (impatient cheater, weak detector); the identity cost is the main wall.

The one-line verdict

EDEN's anti-fraud doesn't have to out-code the cheaters — it has to make cheating a losing bet, and it does: because a caught cheater loses their one lifetime identity, the fraud arms race loses money and fizzles instead of igniting, with a modest security deposit closing the single reckless corner.

Usual honesty: calculator-grade contest model with stated dials (detector strength, deposit size, how much cheaters value their identity); it prices the escalation economics, not the real-world detector, which is the keystone the pilot must prove. Run and written in the July 2026 program; plain-language companion added July 9, 2026.

Figures

fig_hardened_arms_race.png

Raw data

⬇ results_hardened_arms_race.json