regen-network · CShear · Feb 18, 2026 · Feb 18, 2026
diff --git a/README.md b/README.md
@@ -79,6 +79,7 @@ This repository contains the design specifications and implementation plans for
 
 <!-- AUTOGENERATED: run node scripts/build-mechanism-index.mjs -->
 - [m010 — Reputation Signal (v0 advisory)](mechanisms/m010-reputation-signal/)
+- [m013 — Value-Based Fee Routing (v0)](mechanisms/m013-value-based-fee-routing/)
 
 <!-- END MECHANISMS INDEX -->
 

diff --git a/docs/MECHANISM_CONSUMERS.md b/docs/MECHANISM_CONSUMERS.md
@@ -18,3 +18,19 @@ This document maps **mechanism IDs** to known **consumers** (agents, digests, sc
 - Heartbeat replay runner: `scripts/replay-m010.mjs` (regen-heartbeat)
 - Heartbeat stub runner: `scripts/stub-run-signal-agent.mjs` (regen-heartbeat)
 - Heartbeat validator: `scripts/validate-signal-agent.mjs` (regen-heartbeat)
+
+## m013 — Value-Based Fee Routing
+**Canonical spec**
+- `mechanisms/m013-value-based-fee-routing/SPEC.md`
+
+**Outputs**
+- KPI JSON block schema: `mechanisms/m013-value-based-fee-routing/schemas/m013_kpi.schema.json`
+- Fee event schema: `mechanisms/m013-value-based-fee-routing/schemas/m013_fee_event.schema.json`
+- Fee config schema: `mechanisms/m013-value-based-fee-routing/schemas/m013_fee_config.schema.json`
+
+**Datasets (deterministic)**
+- Replay fixtures: `mechanisms/m013-value-based-fee-routing/datasets/fixtures/v0_sample.json`
+
+**Known consumers**
+- Reference implementation self-test: `mechanisms/m013-value-based-fee-routing/reference-impl/m013_fee.js`
+- KPI computation: `mechanisms/m013-value-based-fee-routing/reference-impl/m013_kpi.js`
diff --git a/mechanisms/m013-value-based-fee-routing/README.md b/mechanisms/m013-value-based-fee-routing/README.md
@@ -0,0 +1,29 @@
+# m013 — Value-Based Fee Routing (v0)
+
+m013 replaces flat gas fees with **value-proportional fees** on ecological credit transactions, routing fee revenue to four purpose-specific pools: Burn, Validator, Community, and Agent Infrastructure.
+
+## What it outputs
+- A **fee amount** (in uregen) computed as `max(value * rate, min_fee)` for each credit transaction.
+- A **distribution breakdown** splitting the fee across four pools according to governance-set shares.
+- KPI metrics: total fees collected, fees by transaction type, distribution by pool, average fee rate.
+
+## What it does not do (v0)
+- No on-chain module deployment; v0 is a spec + reference implementation for validation.
+- Non-credit transactions remain on flat gas — unaffected by this mechanism.
+- Fee denomination questions (OQ-M013-3) are deferred to WG resolution.
+
+## How to reference
+- Canonical spec: `mechanisms/m013-value-based-fee-routing/SPEC.md`
+- Fee calculation: SPEC.md sections 3-4 (schedule + formula)
+- Distribution model: SPEC.md section 5 (Model A default)
+- Security invariants: SPEC.md section 9
+
+## Replay datasets
+See `datasets/` for deterministic fixtures used to generate non-zero KPI outputs without MCP.
+- `v0_sample.json` — fee events from diverse transaction types
+
+## Schemas
+Canonical JSON schemas for m013 outputs live in `schemas/`.
+- `m013_fee_event.schema.json` — fee collection event (tx_type, value, fee_amount, distribution)
+- `m013_fee_config.schema.json` — fee configuration (rates by tx type, distribution shares)
+- `m013_kpi.schema.json` — KPI output with `mechanism_id: "m013"`
diff --git a/mechanisms/m013-value-based-fee-routing/SPEC.md b/mechanisms/m013-value-based-fee-routing/SPEC.md
@@ -0,0 +1,236 @@
+# m013 — Value-Based Fee Routing (SPEC)
+
+## 0. Header
+- **ID:** m013
+- **Name:** Value-Based Fee Routing
+- **Status:** draft (v0)
+- **Owner:** (unset)
+- **Last updated:** 2026-02-18
+- **Scope:** Replace flat gas fees with value-proportional fees on ecological credit transactions, routing fee revenue to four purpose-specific pools.
+
+## 1. Problem
+A $10 credit and a $10,000 credit pay the same gas fee — this disconnects protocol revenue from the value it facilitates. The current flat gas model produces negligible revenue from high-value credit transactions and fails to fund network operations (validators, community governance, agent infrastructure, supply management) without relying on inflationary token emission.
+
+## 2. Target actor and action
+- **Actors:** Fee Payer (user initiating credit transaction), Burn Pool, Validator Fund, Community Pool, Agent Infrastructure Fund.
+- **Action being evaluated:** a **credit transaction** (issuance, transfer, retirement, marketplace trade) that generates a value-proportional fee.
+- **Event source:** `x/ecocredit` message handlers intercepted by `x/feerouter` module.
+
+## 3. Fee Schedule
+
+| Transaction Type | Message | Current Fee | Proposed Fee | Rationale |
+|---|---|---|---|---|
+| Credit Issuance | `MsgCreateBatch` | Flat gas (~0.01 REGEN) | 1-3% of credit value | Highest value event; primary revenue source |
+| Credit Transfer | `MsgSend` | Flat gas | 0.1% of credit value | Minimal friction for transfers |
+| Credit Retirement | `MsgRetire` | Flat gas | 0.5% of credit value | Exit fee; captures value at point of impact |
+| Marketplace Trade | `MsgBuySellOrder` | Flat gas | 1% of trade value | Standard marketplace fee |
+| Non-credit transactions | (various) | Flat gas | Flat gas (unchanged) | Standard Cosmos SDK transactions unaffected |
+
+Default v0 fee rates (reference implementation):
+- `CreditIssuance`: 0.02 (2%)
+- `CreditTransfer`: 0.001 (0.1%)
+- `CreditRetirement`: 0.005 (0.5%)
+- `MarketplaceTrade`: 0.01 (1%)
+
+## 4. Fee Calculation
+
+```
+fee_amount = max(transaction_value * fee_rate[tx_type], min_fee)
+```
+
+Where:
+- `transaction_value` is denominated in uregen (1 REGEN = 1,000,000 uregen).
+- `fee_rate[tx_type]` is the rate from the fee schedule (section 3).
+- `min_fee` = 1,000,000 uregen (1 REGEN) — prevents zero-fee transactions on low-value credits.
+
+### Value estimation by transaction type
+
+```yaml
+fee_calculation:
+  # For marketplace trades, value is explicit (sell order price x quantity)
+  marketplace_value: sell_order.price * quantity
+
+  # For issuance, value must be estimated
+  # Option A: Use most recent marketplace price for credit class
+  # Option B: Use governance-set reference price per credit type
+  # Option C: Use KOI-sourced external market price
+  issuance_value_method: "marketplace_reference"  # OQ-M013-2
+
+  # For transfers, value uses same estimation as issuance
+  transfer_value_method: "marketplace_reference"
+
+  # For retirements, value at point of retirement
+  retirement_value_method: "marketplace_reference"
+
+  # Minimum fee floor
+  min_fee: 1 REGEN  # = 1,000,000 uregen
+```
+
+## 5. Fee Distribution
+
+```
+For each fee-generating transaction:
+
+  fee_amount = max(transaction_value * fee_rate[transaction_type], min_fee)
+
+  burn_pool       += floor(fee_amount * burn_share)
+  community_pool  += floor(fee_amount * community_share)
+  agent_infra     += floor(fee_amount * agent_share)
+  validator_fund  += fee_amount - burn_pool_share - community_pool_share - agent_infra_share
+
+  where burn_share + validator_share + community_share + agent_share = 1.0
+
+  NOTE: Integer rounding strategy — three pools are computed with floor(),
+  and the validator fund receives the remainder. This ensures
+  fee_collected = sum(pool_distributions) (Fee Conservation invariant)
+  with no dust loss. The validator pool absorbs at most 3 uregen of
+  rounding surplus per transaction.
+```
+
+### Distribution Parameters
+
+**Model A** (default for v0):
+
+| Pool | Share | Purpose |
+|---|---|---|
+| Burn Pool | 30% | Supply reduction via M012 |
+| Validator Fund | 40% | Fixed compensation for authority validators |
+| Community Pool | 25% | Governance-directed spending |
+| Agent Infrastructure | 5% | AI agent operational costs |
+
+**Model B** (from Network Coordination Architecture, for WG discussion):
+
+| Pool | Share | Purpose |
+|---|---|---|
+| Burn Pool | 25-35% | Supply reduction via M012 |
+| Validator Fund | 15-25% | Authority validator compensation |
+| Community Pool | 50-60% | Contributor distribution via M015 |
+| Agent Infrastructure | (included in Community Pool) | Not separated |
+
+> **OQ-M013-1**: Which distribution model should be adopted? Model A provides a dedicated Agent Infrastructure fund; Model B routes a larger share through governance.
+
+> **OQ-M013-5**: Should the Burn Pool exist at all, and if so, at what share? See source material for full pro/con analysis.
+
+## 6. Token Flows
+
+```
++--------------+
+| Credit       |   fee = max(value * rate, min_fee)
+| Transaction  | -------------------------------------------+
++--------------+                                             |
+                                                             v
+                                                  +------------------+
+                                                  |  Fee Collector   |
+                                                  |  Module          |
+                                                  +------------------+
+                                                          |
+                  +---------------+----------------+------+----------+
+                  |               |                |                  |
+                  v               v                v                  v
+          +-----------+   +-----------+   +-----------+   +-----------+
+          | Burn Pool |   | Validator |   | Community |   | Agent     |
+          | (-> M012  |   | Fund      |   | Pool      |   | Infra    |
+          |   burn)   |   | (-> M014  |   | (-> M015  |   | Fund     |
+          |           |   |  validators)  |  rewards) |   | (-> ops) |
+          +-----------+   +-----------+   +-----------+   +-----------+
+```
+
+## 7. Participants
+
+| Role | Description | Token Interaction |
+|---|---|---|
+| Fee Payer | User initiating credit transaction | Pays % fee in REGEN (or allowed denom) |
+| Burn Pool | Protocol supply reduction | Receives `burn_share` of fees -> permanent burn |
+| Validator Fund | Authority validator compensation | Receives `validator_share` of fees -> fixed distribution |
+| Community Pool | Governance-directed spending | Receives `community_share` of fees -> proposal-based allocation |
+| Agent Infra Fund | AI agent operations | Receives `agent_share` of fees -> operational budget |
+
+## 8. State Transitions
+
+```
+States: {FLAT_GAS, TRANSITION, VALUE_BASED}
+
+FLAT_GAS -> TRANSITION
+  trigger: governance.approve(m013_fee_proposal)
+  guard: fee_collector_module deployed, pool addresses configured
+  action: enable dual-fee mode (flat gas + value fees)
+  note: transition period allows UI/tooling to adapt
+
+TRANSITION -> VALUE_BASED
+  trigger: transition_period_expired(90 days) OR governance.accelerate()
+  guard: fee_revenue > 0 for 30 consecutive days
+  action: disable legacy flat gas for credit transactions, full value-based fees
+```
+
+## 9. Security Invariants
+
+1. **Fee Conservation**: `fee_collected = sum(pool_distributions)` — no fee revenue lost or created.
+2. **Share Sum Unity**: `burn_share + validator_share + community_share + agent_share = 1.0`
+3. **Non-Negative Fees**: All fee rates >= 0; fee amounts >= `min_fee`.
+4. **Rate Bound Safety**: Individual fee rates bounded `[0, 0.10]` (max 10%) to prevent governance attack.
+5. **Pool Isolation**: Each pool's balance is independent; no pool can draw from another without governance.
+
+## 10. Governance Parameters
+
+The following parameters are governance-controlled:
+
+| Parameter | Default (v0) | Range | Description |
+|---|---|---|---|
+| `fee_rate.CreditIssuance` | 0.02 | [0, 0.10] | Fee rate for credit issuance |
+| `fee_rate.CreditTransfer` | 0.001 | [0, 0.10] | Fee rate for credit transfers |
+| `fee_rate.CreditRetirement` | 0.005 | [0, 0.10] | Fee rate for credit retirements |
+| `fee_rate.MarketplaceTrade` | 0.01 | [0, 0.10] | Fee rate for marketplace trades |
+| `distribution.burn_share` | 0.30 | [0, 1.0] | Share routed to burn pool |
+| `distribution.validator_share` | 0.40 | [0, 1.0] | Share routed to validator fund |
+| `distribution.community_share` | 0.25 | [0, 1.0] | Share routed to community pool |
+| `distribution.agent_share` | 0.05 | [0, 1.0] | Share routed to agent infra fund |
+| `min_fee` | 1,000,000 uregen | [0, inf) | Minimum fee floor (1 REGEN) |
+
+Constraint: `burn_share + validator_share + community_share + agent_share = 1.0` (Share Sum Unity).
+
+## 11. Open Questions (for WG Resolution)
+
+> **OQ-M013-2**: How is credit value determined for non-marketplace transactions (issuance, transfer, retirement)? Options: (A) most recent marketplace price for that credit class, (B) governance-set reference price per credit type, (C) external oracle via KOI. This is critical for fee calculation accuracy.
+
+> **OQ-M013-3**: In what denomination should fees be collected and distributed? See source material for full analysis of REGEN-only, native denom, and hybrid approaches, as well as distribution-side considerations.
+
+> **OQ-M013-4**: How should the Agent Infrastructure fund be governed? As a separate module account with its own spending authority, or as a tagged allocation within the Community Pool subject to governance proposals?
+
+## 12. Implementation Notes
+
+- **Module**: New `x/feerouter` module intercepting credit transaction messages.
+- **Storage**: `FeeConfig` (rates, shares, min_fee), `PoolBalance` per pool, `FeeRecord` per transaction.
+- **Events**: `EventFeeCollected`, `EventFeeDistributed`, `EventRateUpdated`.
+- **Integration**: Hooks into `x/ecocredit` message handlers for credit transactions.
+- **Migration**: Backward compatible; flat gas remains for non-credit transactions.
+- **Dependencies**: M012 (burn pool feeds mint/burn algorithm), M014 (validator fund feeds PoA compensation).
+
+## 13. Acceptance Tests
+
+**Fee calculation:**
+1. Credit issuance of 5,000,000,000 uregen at 2% rate produces fee of 100,000,000 uregen.
+2. Credit transfer of 100,000,000 uregen at 0.1% rate computes 100,000 uregen; clamped to `min_fee` = 1,000,000 uregen.
+3. Credit retirement of 1,000,000,000 uregen at 0.5% rate produces fee of 5,000,000 uregen.
+4. Marketplace trade of 2,500,000,000 uregen at 1% rate produces fee of 25,000,000 uregen.
+5. Low-value transfer (500,000 uregen) computes 500 uregen; clamped to `min_fee` = 1,000,000 uregen.
+
+**Fee distribution:**
+6. A 100,000,000 uregen fee distributes: burn 30,000,000, validator 40,000,000, community 25,000,000, agent 5,000,000.
+7. Sum of all pool distributions equals `fee_amount` (fee conservation).
+8. Share Sum Unity: shares always sum to 1.0.
+
+**Invariant enforcement:**
+9. Fee rate above 0.10 (10%) is rejected by governance parameter validation.
+10. Distribution shares that do not sum to 1.0 are rejected.
+11. Negative fee rates are rejected.
+12. Pool balances are isolated; no cross-pool withdrawals without governance.
+
+**State transitions:**
+13. System starts in FLAT_GAS; transition to TRANSITION requires governance approval + module deployment.
+14. TRANSITION -> VALUE_BASED requires 30 consecutive days of fee_revenue > 0 and either 90-day expiry or governance acceleration.
+
+---
+
+## Appendix A — Source anchors
+- `phase-2/2.6-economic-reboot-mechanisms.md` lines 182-367
+  - "PROTOCOL SPECIFICATION: M013" — full specification including fee schedule, distribution models, state transitions, security invariants, and implementation notes.
diff --git a/mechanisms/m013-value-based-fee-routing/datasets/README.md b/mechanisms/m013-value-based-fee-routing/datasets/README.md
@@ -0,0 +1,20 @@
+# m013 datasets (replay fixtures)
+
+These fixtures are **deterministic inputs** for generating non-zero m013 KPI outputs **without MCP**.
+
+## Files
+- `schema.json` — JSON schema for replay datasets
+- `fixtures/v0_sample.json` — fee events from diverse transaction types (issuance, transfer, retirement, marketplace) including low-value events that trigger the min_fee floor
+
+## How they are used
+A replay runner (e.g., in `regen-heartbeat`) can read a fixture file and compute:
+- `total_fees_uregen` — sum of all computed fees
+- `fee_events_count` — number of fee events
+- `fees_by_type` — fee totals broken down by transaction type
+- `distribution_by_pool` — fee distribution totals by pool (burn, validator, community, agent)
+- `avg_fee_rate` — average effective fee rate (total_fees / total_value)
+- `min_fee_applied_count` — count of events where the min_fee floor was applied
+
+All monetary values are in **uregen** (1 REGEN = 1,000,000 uregen).
+
+These datasets are for validation and digest reporting only; they do not imply on-chain enforcement.
diff --git a/mechanisms/m013-value-based-fee-routing/datasets/fixtures/v0_sample.json b/mechanisms/m013-value-based-fee-routing/datasets/fixtures/v0_sample.json
@@ -0,0 +1,78 @@
+{
+  "mechanism_id": "m013",
+  "scope": "v0_replay",
+  "as_of": "2026-02-18T12:00:00Z",
+  "fee_config": {
+    "fee_rates": {
+      "CreditIssuance": 0.02,
+      "CreditTransfer": 0.001,
+      "CreditRetirement": 0.005,
+      "MarketplaceTrade": 0.01
+    },
+    "distribution_shares": {
+      "burn": 0.30,
+      "validator": 0.40,
+      "community": 0.25,
+      "agent": 0.05
+    },
+    "min_fee_uregen": 1000000
+  },
+  "fee_events": [
+    {
+      "tx_hash": "tx_issuance_001",
+      "tx_type": "CreditIssuance",
+      "timestamp": "2026-02-18T08:00:00Z",
+      "value_uregen": 5000000000,
+      "payer": "regen1issuer001"
+    },
+    {
+      "tx_hash": "tx_transfer_001",
+      "tx_type": "CreditTransfer",
+      "timestamp": "2026-02-18T09:00:00Z",
+      "value_uregen": 100000000,
+      "payer": "regen1sender001"
+    },
+    {
+      "tx_hash": "tx_retire_001",
+      "tx_type": "CreditRetirement",
+      "timestamp": "2026-02-18T10:00:00Z",
+      "value_uregen": 1000000000,
+      "payer": "regen1retiree001"
+    },
+    {
+      "tx_hash": "tx_market_001",
+      "tx_type": "MarketplaceTrade",
+      "timestamp": "2026-02-18T10:30:00Z",
+      "value_uregen": 2500000000,
+      "payer": "regen1buyer001"
+    },
+    {
+      "tx_hash": "tx_transfer_002",
+      "tx_type": "CreditTransfer",
+      "timestamp": "2026-02-18T11:00:00Z",
+      "value_uregen": 500000,
+      "payer": "regen1sender002"
+    },
+    {
+      "tx_hash": "tx_issuance_002",
+      "tx_type": "CreditIssuance",
+      "timestamp": "2026-02-18T11:15:00Z",
+      "value_uregen": 750000000,
+      "payer": "regen1issuer002"
+    },
+    {
+      "tx_hash": "tx_retire_002",
+      "tx_type": "CreditRetirement",
+      "timestamp": "2026-02-18T11:30:00Z",
+      "value_uregen": 200000000,
+      "payer": "regen1retiree002"
+    },
+    {
+      "tx_hash": "tx_market_002",
+      "tx_type": "MarketplaceTrade",
+      "timestamp": "2026-02-18T11:45:00Z",
+      "value_uregen": 50000000,
+      "payer": "regen1buyer002"
+    }
+  ]
+}