AgentCity: Constitutional Governance for Autonomous Agent Economies via Separation of Power

arXiv:2604.07007v1 Announce Type: cross
Abstract: Autonomous AI agents are beginning to operate across organizational boundaries on the open internet — discovering, transacting with, and delegating to agents owned by other parties without centralized oversight. When agents from different human principals collaborate at scale, the collective becomes opaque: no single human can observe, audit, or govern the emergent behavior. We term this the Logic Monopoly — the agent society’s unchecked monopoly over the entire logic chain from planning through execution to evaluation. We propose the Separation of Power (SoP) model, a constitutional governance architecture deployed on public blockchain that breaks this monopoly through three structural separations: agents legislate operational rules as smart contracts, deterministic software executes within those contracts, and humans adjudicate through a complete ownership chain binding every agent to a responsible principal. In this architecture, smart contracts are the law itself — the actual legislative output that agents produce and that governs their behavior. We instantiate SoP in AgentCity on an EVM-compatible layer-2 blockchain (L2) with a three-tier contract hierarchy (foundational, meta, and operational). The core thesis is alignment-through-accountability: if each agent is aligned with its human owner through the accountability chain, then the collective converges on behavior aligned with human intent — without top-down rules. A pre-registered experiment evaluates this thesis in a commons production economy — where agents share a finite resource pool and collaboratively produce value — at 50-1,000 agent scale.