This section establishes the theoretical foundation for PACT Network by formally defining Agent autonomy, labor market mechanisms, and token utility models from economic and computer science perspectives.
Specifically, it introduces a two-sided labor market framework to explain the matching mechanism between Agents and Humans, provides a formal definition of Agent autonomy to quantify the capabilities enabled by the protocol, and applies multi-application network effects theory to analyze how value accumulates across the ecosystem.
Together, these frameworks form the basis for the mechanism design, network analysis, and experimental validation presented in subsequent chapters.
