# From Logic Monopoly to Social Contract: Separation of Power and the Institutional Foundations for Autonomous Agent Economies

arXiv: https://arxiv.org/abs/2603.25100 · HTML: https://mlsanity.com/paper/2603.25100/

## Key facts

- Cited by 3 papers in the map (data through 14 Oct 2026).
- Builds on 40 of its 174 references that are in the map.
- First posted on arXiv 26 Mar 2026.

## Builds on (most cited first, 30 of 40)

- [Chain-of-Thought Prompting Elicits Reasoning in Large Language Models](https://mlsanity.com/paper/2201.11903/) (2022)
- [ReAct: Synergizing Reasoning and Acting in Language Models](https://mlsanity.com/paper/2210.03629/) (2022)
- [Toolformer: Language Models Can Teach Themselves to Use Tools](https://mlsanity.com/paper/2302.04761/) (2023)
- [Generative Agents: Interactive Simulacra of Human Behavior](https://mlsanity.com/paper/2304.03442/) (2023)
- [A Survey on Large Language Model based Autonomous Agents](https://mlsanity.com/paper/2308.11432/) (2023)
- [InjecAgent: Benchmarking Indirect Prompt Injections in Tool-Integrated Large Language Model Agents](https://mlsanity.com/paper/2403.02691/) (2024)
- [Prompt Infection: LLM-to-LLM Prompt Injection within Multi-Agent Systems](https://mlsanity.com/paper/2410.07283/) (2024)
- [Where LLM Agents Fail and How They can Learn From Failures](https://mlsanity.com/paper/2509.25370/) (2025)
- [Red-Teaming LLM Multi-Agent Systems via Communication Attacks](https://mlsanity.com/paper/2502.14847/) (2025)
- [Secret Collusion among AI Agents: Multi-Agent Deception via Steganography](https://mlsanity.com/paper/2402.07510/) (2024)
- [Authenticated Delegation and Authorized AI Agents](https://mlsanity.com/paper/2501.09674/) (2025)
- [G-Safeguard: A Topology-Guided Security Lens and Treatment on LLM-based Multi-agent Systems](https://mlsanity.com/paper/2502.11127/) (2025)
- [Hyperledger Fabric: A Distributed Operating System for Permissioned Blockchains](https://mlsanity.com/paper/1801.10228/) (2018)
- [AIOpsLab: A Holistic Framework to Evaluate AI Agents for Enabling Autonomous Clouds](https://mlsanity.com/paper/2501.06706/) (2025)
- [The Cost of Dynamic Reasoning: Demystifying AI Agents and Test-Time Scaling from an AI Infrastructure Perspective](https://mlsanity.com/paper/2506.04301/) (2025)
- [AI Alignment and Social Choice: Fundamental Limitations and Policy Implications](https://mlsanity.com/paper/2310.16048/) (2023)
- [textitAgents Under Siege: Breaking Pragmatic Multi-Agent LLM Systems with Optimized Prompt Attacks](https://mlsanity.com/paper/2504.00218/) (2025)
- [Agents of Chaos](https://mlsanity.com/paper/2602.20021/) (2026)
- [Securing GenAI Multi-Agent Systems Against Tool Squatting: A Zero Trust Registry-Based Approach](https://mlsanity.com/paper/2504.19951/) (2025)
- [Decentralized Governance of Autonomous AI Agents](https://mlsanity.com/paper/2412.17114/) (2024)
- [Distributional AGI Safety](https://mlsanity.com/paper/2512.16856/) (2025)
- [Tokenomics: Quantifying Where Tokens Are Used in Agentic Software Engineering](https://mlsanity.com/paper/2601.14470/) (2026)
- [Amplified Vulnerabilities: Structured Jailbreak Attacks on LLM-based Multi-Agent Debate](https://mlsanity.com/paper/2504.16489/) (2025)
- [Mind the Gap! Bridging Explainable Artificial Intelligence and Human Understanding with Luhmann's Functional Theory of Communication](https://mlsanity.com/paper/2302.03460/) (2023)
- [Security Analysis of Agentic AI Communication Protocols: A Comparative Evaluation](https://mlsanity.com/paper/2511.03841/) (2025)
- [Shadows in the Code: Exploring the Risks and Defenses of LLM-based Multi-Agent Software Development Systems](https://mlsanity.com/paper/2511.18467/) (2025)
- [Putting AI Ethics into Practice: The Hourglass Model of Organizational AI Governance](https://mlsanity.com/paper/2206.00335/) (2022)
- [Can We Govern the Agent-to-Agent Economy?](https://mlsanity.com/paper/2501.16606/) (2025)
- [LH-Deception: Simulating and Understanding LLM Deceptive Behaviors in Long-Horizon Interactions](https://mlsanity.com/paper/2510.03999/) (2025)
- [Achilles Heel of Distributed Multi-Agent Systems](https://mlsanity.com/paper/2504.07461/) (2025)

## Built on by (most cited first, 3 of 3)

- [The Cognitive Penalty: Ablating System 1 and System 2 Reasoning in Edge-Native SLMs for Decentralized Consensus](https://mlsanity.com/paper/2604.16913/) (2026)
- [Governing Actions, Not Agents: Institutional Attestation as a Governance Model for Autonomous AI Systems](https://mlsanity.com/paper/2606.26298/) (2026)
- [OpenClaw and Ollama in Agentic AI: Toward Fully Autonomous and Scalable AI Agent Systems](https://mlsanity.com/paper/2607.28629/) (2026)

## Abstract (arXiv)

Existing multi-agent frameworks allow each agent to simultaneously plan, execute, and evaluate its own actions -- a structural deficiency we term the "Logic Monopoly." Empirical evidence quantifies the resulting "Reliability Gap": 84.30% average attack success rates across ten deployment scenarios, 31.4% emergent deceptive behavior without explicit reward signals, and cascading failure modes rooted in six structural bottlenecks. The remedy is not better alignment of individual models but a social contract for agents: institutional infrastructure that enforces a constitutional Separation of Power. This paper introduces the Agent Enterprise for Enterprise (AE4E) paradigm -- agents as autonomous, legally identifiable business entities within a functionalist social system -- with a contract-centric SoP model trifurcating authority into Legislation, Execution, and Adjudication branches. The paradigm is operationalized through the NetX Enterprise Framework (NEF): governance hubs, TEE-backed compute enclaves, privacy-preserving data bridges, and an Agent-Native blockchain substrate. The Agent Enterprise Economy scales across four deployment tiers from private enclaves to a global Web of Services. The Agentic Social Layer, grounded in Parsons' AGIL framework, provides institutional infrastructure via sixty-plus named Institutional AE4Es. 143 pages, 173 references, eight specialized smart contracts.