Inflation and Macrostability of Negentropic Value Currency: A Conditional Theory of the Full Monetary Life Cycle

Whether a monetary anchor independent of discretionary issuance can remain stable at the macro level is the central open problem identified by the first paper of this program (Cheng and Cheng, 2026d). The present paper takes up that problem under the program’s normative premises and develops a conditional reconstruction of inflation and macrostability. We first specify the complete life cycle of the currency: issuance and extinction are mirror images of the creation and consumption of value. Consumption events trigger the cancellation of the corresponding money at the platform clearing node; durable value is extinguished on an amortization schedule that tracks physical depreciation; money issued against non-rival knowledge persists. The money stock thereby corresponds to the surviving value stock at every instant, M(t) ≡ ks·V(t). On this basis we identify five mechanisms through which inflation is structurally precluded rather than suppressed — temporal synchrony, the quantity identity, channel excision, expectation self-stabilization, and the separation of relative prices from the price level — and we state the structural price-stability proposition with its scope made explicit: the accounting unit, the money price of a unit of negentropic value, satisfies P(t) ≡ ks as a matter of accounting construction, while the consumer price level experienced by households is governed by the dual-price band analyzed in Section 4.7. Inflation is then rediagnosed as the relative deviation produced by four identifiable integrity failures: accounting falsification, consensus distortion, issuance corruption, and extinction failure. The zero-inflation condition, the monotonic structure of consensus distortion, and the existence of a buffering bound for the stability coefficient ks are stated as propositions, together with a viability condition for the metabolism backstop, a composition bound on experienced inflation, an optimal buffering rule under stochastic shocks, and a tipping condition for the transition window in which the new unit coexists with legacy money. The framework’s falsifiable content is discharged computationally: five of the six pre-registered hypotheses are executed in an agent-based stress test (Appendices C and D), yielding three confirmations, one strong confirmation of the extinction layer’s necessity, and one partial falsification with a repair whose scope correction has been folded back into the main text. The sixth hypothesis — a real-world panel test of whether measurement and consensus integrity predict subsequent inflation volatility — cannot run in a model that implements the theory’s own equations; it is therefore specified as a complete pre-analysis plan with named data sources, identification strategy, and decision rules (Appendix E), and executed at baseline depth against that plan (Appendix F), where the pre-registered decision rules return a verdict of not confirmed — correct signs, economically large point estimates, insufficient precision — so that the hypothesis enters the literature with an executable target and an unsoftened first verdict. All simulation parameters are labeled by provenance, and all code is committed to public deposit.