L3: Governance Layer

pub struct Chapter {
    pub id: ChapterId,
    pub charter: Constitution,
    pub members: Vec<Did>,
    pub reputation_threshold: f64,     // Minimum QVL score to join
    pub governance: GovernanceModel,
    pub state: ChapterState,
}

pub struct Constitution {
    pub name: String,
    pub purpose: String,
    pub rules: Vec<Rule>,
    pub amendment_process: AmendmentProcess,
}

impl Chapter {
    fn exit(&self, member: Did) -> ExitPackage {
        ExitPackage {
            identity: member,
            reputation: self.qvl.export_trust_edges(member),
            assets: self.ledger.export_claims(member),
            timestamp: now(),
            proof: self.sign_exit(member),
        }
    }
}

fn fork(&self, fork_name: String, members: Vec<Did>) -> Chapter {
    Chapter {
        id: generate_id(),
        charter: self.charter.clone(),  // Copy constitution
        members: members,
        state: self.state.fork(),       // Copy relevant state
        parent: Some(self.id),          // Track lineage
        created_at: now(),
    }
}

pub struct MemberProfile {
    pub did: Did,
    pub memberships: Vec<ChapterMembership>,
    // No restriction on number of Chapters
}

pub struct StateChannel {
    pub participants: Vec<Did>,
    pub state: ContractState,
    pub sequence: u64,                    // Monotonic version
    pub signatures: Vec<Signature>,      // All must sign
    pub collateral: Vec<Stake>,
    pub dispute_deadline: Timestamp,
}

1. OPEN
   - Participants lock collateral
   - Initial state agreed and signed

2. UPDATE
   - Propose new state
   - All participants sign
   - Old state invalidated by sequence number

3. CLOSE (mutual)
   - All parties sign final state
   - Collateral distributed

4. CLOSE (disputed)
   - Submit to Chapter arbitration
   - Arbiter judges based on evidence
   - Losing party penalized

Defection_Cost = Stake * (1 + Trust_Score) + Reputation_Loss
Defection_Gain = Immediate_Payoff

Rational_Actor_Defects: Defection_Gain > Defection_Cost
Libertaria_Ensures: Defection_Cost > Defection_Gain (by construction)

pub struct BetrayalEnforcement {
    pub stake_burn: Amount,           // Destroyed
    pub redistribution: Vec<(Did, Amount)>,  // To honest parties
    pub reputation_penalty: f64,      // QVL score reduction
    pub exile: bool,                  // Chapter expulsion
}

impl Chapter {
    fn enforce_betrayal(
        &mut self,
        betrayer: Did,
        evidence: BetrayalEvidence,
    ) {
        // 1. Verify evidence via L1 QVL
        let proof = self.qvl.verify_betrayal(evidence);

        // 2. Compute penalties
        let enforcement = self.compute_penalties(betrayer, proof);

        // 3. Execute
        self.burn_stake(enforcement.stake_burn);
        self.redistribute(enforcement.redistribution);
        self.qvl.apply_penalty(betrayer, enforcement.reputation_penalty);

        if enforcement.exile {
            self.remove_member(betrayer);
        }

        // 4. Broadcast proof to network
        self.gossip.broadcast(BetrayalSignal {
            betrayer: betrayer,
            evidence: proof,
            enforcement: enforcement,
        });
    }
}

pub struct ChapterFederation {
    pub chapters: Vec<ChapterId>,
    pub mutual_recognition: Vec<(ChapterId, ChapterId)>,
    pub dispute_arbiters: Vec<Did>,  // Trusted by multiple Chapters
}

Chapter: BerlinDev (employer)
Chapter: BudapestNomads (employee's home)

Contract:
  - Work delivered via State Channel
  - Payment in mixed: 50% EUR stablecoin, 50% reputation
  - Dispute: Arbiters from both Chapters
  - Exit: Employee keeps reputation, transferable to any Chapter

pub struct SlashSignal {
    pub header: LwfHeader,            // ServiceType 0x0002
    pub betrayer: Did,
    pub severity: SlashSeverity,
    pub evidence_hash: [u8; 32],
    pub proof: Signature,
}

pub enum SlashSeverity {
    Warn = 0x01,          // Log and notify
    Quarantine = 0x02,    // Restrict for 24h
    Slash = 0x03,         // Burn stake
    Exile = 0x04,         // Permanent ban
}