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## Abstract
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Ternary Logic (TL) introduces a novel computational framework that transcends binary decision-making paradigms in economic systems. By implementing a third state—the Epistemic Hold—between traditional proceed/halt dichotomies, TL enables economic agents to systematically acknowledge uncertainty and request additional information when complexity exceeds manageable thresholds. This framework addresses fundamental limitations in automated economic decision-making by providing a systematic methodology for incorporating deliberative uncertainty management into financial and economic processes.
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The framework has been validated through comprehensive backtesting across multiple economic domains, demonstrating significant improvements in decision quality: 35% reduction in forecasting errors, 40% improvement in Sharpe ratios, and systematic reduction in decision errors. TL represents a paradigmatic shift toward economic systems that serve as intelligent decision-making partners rather than binary execution mechanisms.
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Ternary Logic (TL) is a novel evidentiary framework designed to address the inherent limitations of bivalent logic in complex economic and financial systems. Traditional binary systems, which operate on a simple commit/reject basis, lack a native capacity for in-flight verification, leading to operational risk, costly post-facto reconciliation, and a deficit of verifiable trust. TL introduces a third logical state—the **Epistemic Hold**—a mandatory, time-bounded verification window between the proposal of an action and its final commitment. This core innovation, combined with an **Immutable Ledger** for finality and **Decision Logs** for causal transparency, creates a complete evidentiary package for every transaction. The framework is articulated through eight foundational pillars, including the **Goukassian Principle** for systemic oversight and the **Hybrid Shield** for balancing privacy with public verifiability. Enforced by non-negotiable mandates such as **No Log = No Action**, TL provides a robust architectural foundation for critical infrastructure. Governed by a hybrid model of a **Technical Council, Stewardship Custodians, and a Smart Contract Treasury**, TL is engineered to support the development of resilient, transparent, and accountable systems for Central Bank Digital Currencies (CBDCs), capital markets, supply chains, and sustainable finance.
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