№ 08·0208 · Proof of Business2 min read · Section 2 of 6
8.2 What counts as a valid closed loop
A valid closed loop must be externally observable, backed by verifiable evidence, traceable to responsible parties, and re-reviewable to the same judgment.
Updated
8.2 · Valid closed loop
Only a business event with a provable result and a submittable evidence package qualifies as a closed loop for PoB.
When the boundary blurs, PoB degrades into another score. A valid closed loop must satisfy four conditions at once: the result is externally observable, the evidence is verifiable, responsibility is traceable, and the process is re-reviewable. Miss one, and the result is intent or process noise — not a PoB object.
What this page doesStates the four conditions and shows what evidence looks like
Core themesObservable result, verifiable evidence, traceable responsibility, re-reviewable process
Reading highlightsThe four conditions; closed-loop types; counterexamples
The four conditions a valid closed loop must satisfy
A closed loop enters PoB only when all four conditions hold together. The difficulty is the real-world cost of proof and cross-verification, not a cryptographic puzzle.
The result is externally observableA signing, a transfer, a launch, a delivery, or a KPI met. The outcome shows in the world, not only in a private claim.
The evidence is verifiableContracts, invoices, onchain records, partner sign-off, reviewable logs. Material an independent party can examine.
Responsibility is traceableEach advancing action maps to a specific node or agent, so the closed loop has named owners rather than a crowd.
The process is re-reviewableA reviewer who re-examines the process reaches the same judgment. The conclusion is reproducible, not a one-time call.
The result is externally observable, the evidence is verifiable, responsibility is traceable, and the process is re-reviewable — all four, or it does not count.
Closed-loop types and what valid evidence looks like
The conditions hold across every type of closed loop. The shape of the evidence package changes; the underlying standard does not. The examples below are illustrative; the exact list follows current network rules and review templates.
Financing closed loopSigned agreement, board resolution, bank deposit or escrow-release record, cap-table update under compliance. Counterexample: a term sheet with no signature and no payment.
Service closed loopStatement of work, milestone acceptance, deliverable hash or signed report, invoice aligned to delivery. Counterexample: an internal draft the client never confirmed.
Growth closed loopCampaign contract, attribution export, reconciled conversion or revenue range, method described against a baseline. Counterexample: a screenshot with no timestamp that no third party can reconcile.
Liquidity closed loopExchange or market-making agreement, onchain pool address and window-period volume, and required compliance disclosure. Counterexample: a verbal meeting confirmation alone.
Resource-access closed loopInstitutional access letter, official record of an opened channel or data feed, named owner, and effective date. Counterexample: a swapped card or a single meeting with no follow-through.
Agent-execution closed loopA clear record that a human or process adopted the agent output — a ticket closed, a merge, a customer approval. The adoption holds a causal chain to the result. Counterexample: a generated file that never entered a decision.
The deal threshold, restated
A completed deal turns on signatures, fulfilled conditions, and settled funds — not on how many times the parties met. A valid closed loop works the same way. Only an event that clears the outcome threshold enters the value layer. However exciting the diligence, an unmet threshold does not enter the ledger.
First write down what counts. Then the exclusions in 8.3 have teeth. Otherwise the system drains under the pressure of "this should count," and the nodes serious about closing the loop are the ones harmed.
