Layer 3 — Finance and Incentive Engine

Can the policy be financed honestly and can incentives remain stable under stress?

Gate Profile

Institution: Liability Office + Incentive Lab

Mandate: Scores proposals for cost realism, funding source integrity, and behavior-shaping incentives at 1, 5, and 20 years.

In plain terms: If nobody can show who pays and what behavior changes, the proposal stalls here.

Why this gate exists: It operationalizes fiscal honesty and blocks unfunded promises.

Entry Criteria

  • Pilot-ready policy specification from Layer 2
  • Cost assumptions and payer model
  • Behavioral assumptions and abuse-risk hypotheses

Exit Criteria

  • Validated 1/5/20-year liability profile
  • Incentive stress-test result and mitigation triggers
  • Funding and risk memo cleared for pilot authorization

Primary Outputs

  • Fiscal sustainability score
  • Incentive integrity score
  • Automatic stabilizer and trigger recommendations

Failure Triggers and Escalation

  • Unfunded liabilities above risk threshold
  • Unmitigated moral-hazard or capture incentives
  • Opaque payer structure

Escalation rule: If fiscal or incentive checks fail, proposal returns to design with mandatory funding and behavior revisions.

Bodies Operating in This Gate

Liability Office

Members: Liability Auditors

Lead title: Liability Comptroller

Purpose: Validates funding sources and fiscal liabilities across multiple time horizons.

Incentive Lab

Members: Incentive Modelers

Lead title: Incentive Director

Purpose: Stress-tests behavioral incentives, abuse vectors, and welfare-cliff risks.

For full selection mechanics, see Bodies and Titles.

Constitutional Rationale

Implements fiscal honesty and anti-capture through mandatory transparent financing and incentive checks.

Gate Navigation

Back to Deployment Gates overview

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Next gate: Layer 4 — Pilot Authority