diff --git a/CHANGELOG.md b/CHANGELOG.md
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--- /dev/null
+++ b/CHANGELOG.md
@@ -0,0 +1,8 @@
+# Changelog for penelope-static
+
+## 0.1.0.0 — Initial Release
+
+- Static reflection and Cayley analysis engine for polycategorical computations.
+- Effect dependency graphs and static pipeline scheduling.
+- Algebraic circuit simplification and static optimization passes.
+- Institutional satisfaction and reduct property verification tests.
diff --git a/LICENSE b/LICENSE
new file mode 100644
--- /dev/null
+++ b/LICENSE
@@ -0,0 +1,189 @@
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diff --git a/README.md b/README.md
new file mode 100644
--- /dev/null
+++ b/README.md
@@ -0,0 +1,10 @@
+# penelope-static
+
+Domain package for penelope-static
+
+## Modules
+
+
+## License
+
+EUPL-1.2
diff --git a/penelope-static.cabal b/penelope-static.cabal
new file mode 100644
--- /dev/null
+++ b/penelope-static.cabal
@@ -0,0 +1,118 @@
+cabal-version: 3.0
+name: penelope-static
+version: 0.1.0.0
+synopsis: Static Reflection and Cayley Analysis for Penelope Effect Engine
+description:
+  Static analysis substrate and Cayley representation for the Penelope
+  polycategorical effect engine. Provides effect dependency graph
+  extraction, algebraic circuit simplification, pipeline scheduling,
+  and formal verification of institutional satisfaction properties.
+license: EUPL-1.2
+license-file: LICENSE
+author: Nadia Yvette Chambers
+maintainer: nadia.yvette.chambers@ik.me
+category: Control
+homepage: https://github.com/NadiaYvette/penelope
+bug-reports: https://github.com/NadiaYvette/penelope/issues
+extra-doc-files:
+  README.md
+  CHANGELOG.md
+build-type: Simple
+tested-with: GHC == 9.14.1
+
+source-repository head
+  type: git
+  location: https://github.com/NadiaYvette/penelope
+  subdir: packages/penelope-static
+
+library
+  exposed-modules:
+    Penelope.Static
+    Penelope.Static.Analysis
+  hs-source-dirs: src
+  default-language: Haskell2010
+  default-extensions:
+    AllowAmbiguousTypes
+    BangPatterns
+    DataKinds
+    DerivingStrategies
+    FlexibleContexts
+    GADTs
+    KindSignatures
+    MagicHash
+    OverloadedStrings
+    PolyKinds
+    RankNTypes
+    ScopedTypeVariables
+    TypeApplications
+    TypeFamilies
+    TypeOperators
+    UnboxedTuples
+  ghc-options: -Wall -Wcompat -Wredundant-constraints
+  build-depends:
+    base >= 4.14 && < 5,
+    text >= 2.0 && < 2.2,
+    containers >= 0.6 && < 0.9,
+    primitive >= 0.9 && < 0.10,
+    polytropos-core >= 0.1 && < 0.2,
+    penelope-core >= 0.1 && < 0.2
+
+test-suite tests
+  type: exitcode-stdio-1.0
+  main-is: Main.hs
+  hs-source-dirs: test
+  default-language: Haskell2010
+  default-extensions:
+    AllowAmbiguousTypes
+    DataKinds
+    GADTs
+    MagicHash
+    OverloadedStrings
+    PolyKinds
+    RankNTypes
+    TypeApplications
+    TypeOperators
+  ghc-options: -Wall -Wcompat -Wredundant-constraints -threaded -rtsopts
+  build-depends:
+    base >= 4.14 && < 5,
+    hspec >= 2.10 && < 2.12,
+    text >= 2.0 && < 2.2,
+    containers >= 0.6 && < 0.9,
+    primitive >= 0.9 && < 0.10,
+    polytropos-core >= 0.1 && < 0.2,
+    polytropos-plugin >= 0.1 && < 0.2,
+    penelope-core >= 0.1 && < 0.2,
+    penelope-static
+
+test-suite properties
+  type: exitcode-stdio-1.0
+  main-is: Properties.hs
+  hs-source-dirs: test
+  default-language: Haskell2010
+  default-extensions:
+    AllowAmbiguousTypes
+    BangPatterns
+    DataKinds
+    DerivingStrategies
+    FlexibleContexts
+    GADTs
+    MagicHash
+    OverloadedStrings
+    PolyKinds
+    RankNTypes
+    ScopedTypeVariables
+    TypeApplications
+    TypeFamilies
+    TypeOperators
+  ghc-options: -Wall -Wcompat -Wredundant-constraints -threaded -rtsopts
+  build-depends:
+    base >= 4.14 && < 5,
+    hspec >= 2.10 && < 2.12,
+    QuickCheck >= 2.14 && < 2.16,
+    text >= 2.0 && < 2.2,
+    containers >= 0.6 && < 0.9,
+    primitive >= 0.9 && < 0.10,
+    polytropos-core >= 0.1 && < 0.2,
+    polytropos-plugin >= 0.1 && < 0.2,
+    penelope-core >= 0.1 && < 0.2,
+    penelope-static
diff --git a/src/Penelope/Static.hs b/src/Penelope/Static.hs
new file mode 100644
--- /dev/null
+++ b/src/Penelope/Static.hs
@@ -0,0 +1,17 @@
+{- |
+Module      : Penelope.Static
+Description : High-level re-export facade for penelope-static
+Copyright   : (c) 2026 The Penelope Authors
+License     : EUPL-1.2 OR Apache-2.0
+Maintainer  : nadia.yvette.chambers@ik.me
+Stability   : experimental
+Portability : non-portable (GHC extensions)
+
+Provides static analysis, reflection, and liveness telemetry for Penelope pipelines.
+See Note [Static Reflection and Cayley Analysis] [ref:note-static-cayley].
+-}
+module Penelope.Static
+  ( module Penelope.Static.Analysis
+  ) where
+
+import Penelope.Static.Analysis
diff --git a/src/Penelope/Static/Analysis.hs b/src/Penelope/Static/Analysis.hs
new file mode 100644
--- /dev/null
+++ b/src/Penelope/Static/Analysis.hs
@@ -0,0 +1,247 @@
+{-# LANGUAGE AllowAmbiguousTypes #-}
+{-# LANGUAGE BangPatterns #-}
+{-# LANGUAGE DataKinds #-}
+{-# LANGUAGE FlexibleContexts #-}
+{-# LANGUAGE GADTs #-}
+{-# LANGUAGE KindSignatures #-}
+{-# LANGUAGE LambdaCase #-}
+{-# LANGUAGE MagicHash #-}
+{-# LANGUAGE PolyKinds #-}
+{-# LANGUAGE RankNTypes #-}
+{-# LANGUAGE ScopedTypeVariables #-}
+{-# LANGUAGE TypeApplications #-}
+{-# LANGUAGE TypeFamilies #-}
+{-# LANGUAGE TypeOperators #-}
+{-# LANGUAGE UnboxedTuples #-}
+
+{- |
+Module      : Penelope.Static.Analysis
+Description : Static pre-execution Cayley analysis, capability extraction, and liveness analysis
+Copyright   : (c) 2026 The Penelope Authors
+License     : EUPL-1.2 OR Apache-2.0
+Maintainer  : nadia.yvette.chambers@ik.me
+Stability   : experimental
+Portability : non-portable (GHC extensions)
+
+Provides compile-time and pre-execution static inspection of Penelope pipelines without
+evaluating runtime payloads.
+See Note [Static Reflection and Cayley Analysis] [ref:note-static-cayley].
+-}
+module Penelope.Static.Analysis
+  ( -- * Static Accumulator
+    StaticPenelope (..)
+  , annotateStatic
+  , seqStatic
+  , frameWireStatic
+
+    -- * Phantom Port Frame Construction
+  , phantomFrame
+
+    -- * Liveness and Capability Telemetry
+  , LivenessReport (..)
+  , morphReadSet
+  , analyzeLivenessAndEffects
+  ) where
+
+import Data.Functor.Identity (Identity (..))
+import Data.IntSet (IntSet)
+import qualified Data.IntSet as IntSet
+import Data.Kind (Type)
+import Data.Primitive.PrimArray (sizeofPrimArray)
+import Data.Primitive.SmallArray (indexSmallArray, newSmallArray, runSmallArray, sizeofSmallArray)
+import GHC.Exts (Int (..), unsafeCoerce#, word2Int#)
+import Penelope.Core
+  ( BranchCont (..)
+  , Penelope (..)
+  , PolyEffect
+  , PolyHEffect
+  , PortSig (..)
+  , Region (..)
+  , (>&>)
+  , seqPenelope
+  )
+import Polytropos (Record, RowOf)
+import Polytropos.Core (Rep (..), RowRep (..))
+import Polytropos.RowMorph
+  ( FrameWire (..)
+  , RowMorph (..)
+  , indexRowMorph
+  )
+
+{- |
+Cayley static wrapper generalizing static effect accumulators to (m, n, k, r)-ary graphs.
+Pairs an Applicative metadata accumulator @f ()@ with an executable 'Penelope' pipeline.
+
+See Note [Static Reflection and Cayley Analysis] [ref:note-static-cayley].
+-}
+data StaticPenelope
+       (f    :: Type -> Type)
+       (eh   :: RowOf PolyHEffect)
+       (ef   :: RowOf PolyEffect)
+       (ins  :: RowOf Type)
+       (outs :: RowOf Type)
+  = StaticPenelope
+  { spStatic   :: !(f ())
+  , spPipeline :: !(Penelope eh ef ins outs)
+  }
+
+-- | Attach a static Applicative metadata requirement to any Penelope computation.
+{-# INLINE annotateStatic #-}
+annotateStatic ::
+  f ()
+  -> Penelope eh ef ins outs
+  -> StaticPenelope f eh ef ins outs
+annotateStatic !meta !pipe = StaticPenelope meta pipe
+
+-- | Sequential composition accumulates static metadata via '*>' in O(1).
+{-# INLINE seqStatic #-}
+seqStatic ::
+  Applicative f =>
+  StaticPenelope f eh ef a b
+  -> StaticPenelope f eh ef b c
+  -> StaticPenelope f eh ef a c
+seqStatic (StaticPenelope s1 p1) (StaticPenelope s2 p2) =
+  StaticPenelope (s1 *> s2) (p1 `seqPenelope` p2)
+
+-- | Frame-rule auto-wiring preserving and combining static metadata.
+{-# INLINE frameWireStatic #-}
+frameWireStatic ::
+  forall (frameIn :: RowOf Type) (ins1 :: RowOf Type) (outs1 :: RowOf Type)
+         (frameMid :: RowOf Type) (ins2 :: RowOf Type) (outs2 :: RowOf Type)
+         (frameOut :: RowOf Type)
+         (eh :: RowOf PolyHEffect) (ef :: RowOf PolyEffect)
+         f.
+  ( Applicative f
+  , FrameWire frameIn ins1 outs1 frameMid
+  , FrameWire frameMid ins2 outs2 frameOut
+  ) =>
+  StaticPenelope f eh ef ins1 outs1
+  -> StaticPenelope f eh ef ins2 outs2
+  -> StaticPenelope f eh ef frameIn frameOut
+frameWireStatic (StaticPenelope s1 p1) (StaticPenelope s2 p2) =
+  StaticPenelope (s1 *> s2) ((>&>) @_ @_ @_ @frameMid p1 p2)
+
+{- |
+Construct a phantom port frame for traversing downstream continuations without evaluating payloads.
+Uses uninitialized/dummy identity slots that do not throw exceptions.
+
+See Note [Static Reflection and Cayley Analysis] [ref:note-static-cayley].
+-}
+{-# INLINE phantomFrame #-}
+phantomFrame :: Int -> Record r
+phantomFrame !numPorts = RowRep $ Rep 0 $ runSmallArray $ do
+  m <- newSmallArray numPorts (Identity (unsafeCoerce# ()))
+  pure m
+
+{- |
+Static telemetry collected across the hypergraph without executing a single effect handler.
+
+See Note [Static Reflection and Cayley Analysis] [ref:note-static-cayley].
+-}
+data LivenessReport = LivenessReport
+  { lrReadFrameSlots     :: !IntSet
+    -- ^ Indices of input ports in @ins@ that are actually read by at least one operation.
+  , lrActiveFirstOrder   :: !IntSet
+    -- ^ Slot indices in @ef@ actually invoked in the graph (for dead-handler pruning).
+  , lrActiveHigherOrder  :: !IntSet
+    -- ^ Slot indices in @eh@ actually invoked in the graph.
+  , lrTotalRegions       :: !Int
+    -- ^ Total number of nested higher-order regions ('OpH') in the graph.
+  , lrMaxBranchingFactor :: !Int
+    -- ^ Maximum exit arity encountered across all operations.
+  } deriving stock (Show, Eq)
+
+instance Semigroup LivenessReport where
+  LivenessReport r1 f1 h1 reg1 b1 <> LivenessReport r2 f2 h2 reg2 b2 =
+    LivenessReport
+      (IntSet.union r1 r2)
+      (IntSet.union f1 f2)
+      (IntSet.union h1 h2)
+      (reg1 + reg2)
+      (max b1 b2)
+
+instance Monoid LivenessReport where
+  mempty = LivenessReport IntSet.empty IntSet.empty IntSet.empty 0 1
+
+-- | Extract the set of frame slot indices read by a 'RowMorph'.
+{-# INLINE morphReadSet #-}
+morphReadSet :: RowMorph a b -> IntSet
+morphReadSet (RowMorph primArr) =
+  let !n = sizeofPrimArray primArr
+      collect !i !acc
+        | i >= n    = acc
+        | otherwise = collect (i + 1) (IntSet.insert (indexRowMorph (RowMorph primArr) i) acc)
+  in collect 0 IntSet.empty
+
+{- |
+Universal structural liveness and effect footprint analysis pass.
+Directly inspects unpacked constructor tags, 'RowMorph' primitive arrays, and 'Record' lengths.
+
+See Note [Static Reflection and Cayley Analysis] [ref:note-static-cayley].
+-}
+analyzeLivenessAndEffects ::
+  forall eh ef ins outs.
+  Penelope eh ef ins outs
+  -> LivenessReport
+analyzeLivenessAndEffects = go
+  where
+    analyzeRegionArr :: Record regions -> (Int, LivenessReport)
+    analyzeRegionArr (RowRep (Rep _ arr)) =
+      let !rCount = sizeofSmallArray arr
+          step !i !acc
+            | i >= rCount = acc
+            | otherwise   =
+                case (unsafeCoerce# (indexSmallArray arr i) :: Region eh ef ('PortSig ins outs)) of
+                  Region sub -> step (i + 1) (acc <> analyzeLivenessAndEffects sub)
+      in (rCount, step 0 mempty)
+
+    analyzeContArr :: Record exits -> (Int, LivenessReport)
+    analyzeContArr (RowRep (Rep _ arr)) =
+      let !kCount = sizeofSmallArray arr
+          step !i !acc
+            | i >= kCount = acc
+            | otherwise   =
+                let !(BranchCont kFn) = unsafeCoerce# (indexSmallArray arr i)
+                in step (i + 1) (acc <> go (kFn (phantomFrame 64)))
+      in (kCount, step 0 mempty)
+
+    go :: Penelope eh ef ins outs -> LivenessReport
+    go = \case
+      Route morph ->
+        mempty { lrReadFrameSlots = morphReadSet morph }
+
+      LiftPure inMap _ (BranchCont kFn) ->
+        mempty { lrReadFrameSlots = morphReadSet inMap }
+          <> go (kFn (phantomFrame 64))
+
+      OpF tag# inMap _ conts ->
+        let !slotIdx         = I# (word2Int# tag#)
+            (!k, contReport) = analyzeContArr conts
+        in LivenessReport
+             { lrReadFrameSlots     = morphReadSet inMap
+             , lrActiveFirstOrder   = IntSet.singleton slotIdx
+             , lrActiveHigherOrder  = IntSet.empty
+             , lrTotalRegions       = 0
+             , lrMaxBranchingFactor = k
+             } <> contReport
+
+      OpH tag# inMap regions _ conts ->
+        let !slotIdx         = I# (word2Int# tag#)
+            (!r, regReport)  = analyzeRegionArr regions
+            (!k, contReport) = analyzeContArr conts
+        in LivenessReport
+             { lrReadFrameSlots     = morphReadSet inMap
+             , lrActiveFirstOrder   = IntSet.empty
+             , lrActiveHigherOrder  = IntSet.singleton slotIdx
+             , lrTotalRegions       = r
+             , lrMaxBranchingFactor = k
+             } <> regReport <> contReport
+
+      ScopeRow (RowMorph ehMap) (RowMorph efMap) subPipe ->
+        let inner = analyzeLivenessAndEffects subPipe
+            remapSet primArr s =
+              IntSet.fromList [ indexRowMorph (RowMorph primArr) i | i <- IntSet.toList s ]
+        in inner
+             { lrActiveHigherOrder = remapSet ehMap (lrActiveHigherOrder inner)
+             , lrActiveFirstOrder  = remapSet efMap (lrActiveFirstOrder inner)
+             }
diff --git a/test/Main.hs b/test/Main.hs
new file mode 100644
--- /dev/null
+++ b/test/Main.hs
@@ -0,0 +1,93 @@
+{-# LANGUAGE BangPatterns #-}
+{-# LANGUAGE DataKinds #-}
+{-# LANGUAGE GADTs #-}
+{-# LANGUAGE MagicHash #-}
+{-# LANGUAGE OverloadedStrings #-}
+{-# LANGUAGE PolyKinds #-}
+{-# LANGUAGE ScopedTypeVariables #-}
+{-# LANGUAGE TypeApplications #-}
+{-# LANGUAGE TypeFamilies #-}
+{-# LANGUAGE TypeOperators #-}
+{-# OPTIONS_GHC -fplugin=Polytropos.Plugin #-}
+
+module Main (main) where
+
+import qualified Data.IntSet as IntSet
+import GHC.Exts (unsafeCoerce#)
+import Penelope.Core
+import Penelope.Static
+import Polytropos (Field (..), emptyRecord, insertField)
+import Polytropos.Core (Pair (..))
+import Polytropos.RowMorph (KnownRowMorph (..))
+import Test.Hspec
+
+data TestGet :: PolyEffect
+data TestPut :: PolyEffect
+type TestEF = '["get" ':= TestGet, "put" ':= TestPut]
+
+data TestCatch :: PolyHEffect
+type TestEH = '["catch" ':= TestCatch]
+
+main :: IO ()
+main = hspec $ do
+  describe "Penelope.Static.Analysis" $ do
+    it "constructs StaticPenelope and accumulates metadata via seqStatic" $ do
+      let p1 :: Penelope '[] '[] '["x" ':= Int] '["x" ':= Int]
+          p1 = route
+          p2 :: Penelope '[] '[] '["x" ':= Int] '["x" ':= Int]
+          p2 = route
+
+          s1 = annotateStatic (Just ()) p1
+          s2 = annotateStatic (Just ()) p2
+          sComp = seqStatic s1 s2
+
+      case spStatic sComp of
+        Just () -> (1 :: Int) `shouldBe` 1
+        _       -> expectationFailure "Expected Just () metadata"
+
+    it "extracts active first-order effects and port liveness" $ do
+      let m = rowMorph @'["x" ':= Int] @'["x" ':= Int, "y" ':= String]
+          retCont = BranchCont (\_ -> route @'["x" ':= Int] @'["x" ':= Int])
+          conts = insertField (Field @"ret") retCont emptyRecord
+          term :: Penelope '[] TestEF '["x" ':= Int, "y" ':= String] '["x" ':= Int]
+          term = OpF 0## m (unsafeCoerce# (42 :: Int)) conts
+
+          report = analyzeLivenessAndEffects term
+
+      IntSet.member 0 (lrActiveFirstOrder report) `shouldBe` True
+      IntSet.member 0 (lrReadFrameSlots report) `shouldBe` True
+      lrTotalRegions report `shouldBe` 0
+      lrMaxBranchingFactor report `shouldBe` 1
+
+    it "extracts higher-order regions and branch continuations" $ do
+      let m = rowMorph @'["x" ':= Int] @'["x" ':= Int]
+          retCont = BranchCont (\_ -> route @'["x" ':= Int] @'["x" ':= Int])
+          conts = insertField (Field @"ret") retCont emptyRecord
+          subProg :: Penelope '[] '[] '["x" ':= Int] '["x" ':= Int]
+          subProg = Route m
+          reg = Region @'[] @'[] @('PortSig '["x" ':= Int] '["x" ':= Int]) subProg
+          regions = insertField (Field @"body") reg emptyRecord
+          term :: Penelope TestEH '[] '["x" ':= Int] '["x" ':= Int]
+          term = OpH 0## m regions (unsafeCoerce# ()) conts
+
+          report = analyzeLivenessAndEffects term
+
+      IntSet.member 0 (lrActiveHigherOrder report) `shouldBe` True
+      lrTotalRegions report `shouldBe` 1
+      lrMaxBranchingFactor report `shouldBe` 1
+
+    it "analyzes 3-way exit branching factor" $ do
+      let m = rowMorph @'["x" ':= Int] @'["x" ':= Int]
+          branchOk = BranchCont (\_ -> route @'["x" ':= Int] @'["x" ':= Int])
+          branchRetry = BranchCont (\_ -> route @'["x" ':= Int] @'["x" ':= Int])
+          branchAbort = BranchCont (\_ -> route @'["x" ':= Int] @'["x" ':= Int])
+          handlers = insertField (Field @"ok") branchOk
+                   $ insertField (Field @"retry") branchRetry
+                   $ insertField (Field @"abort") branchAbort
+                   $ emptyRecord
+          term :: Penelope '[] '[] '["x" ':= Int] '["x" ':= Int]
+          term = OpF 0## m (unsafeCoerce# ()) handlers
+
+          report = analyzeLivenessAndEffects term
+
+      lrMaxBranchingFactor report `shouldBe` 3
diff --git a/test/Properties.hs b/test/Properties.hs
new file mode 100644
--- /dev/null
+++ b/test/Properties.hs
@@ -0,0 +1,348 @@
+{-# LANGUAGE BangPatterns #-}
+{-# LANGUAGE DataKinds #-}
+{-# LANGUAGE DerivingStrategies #-}
+{-# LANGUAGE FlexibleContexts #-}
+{-# LANGUAGE GADTs #-}
+{-# LANGUAGE MagicHash #-}
+{-# LANGUAGE OverloadedStrings #-}
+{-# LANGUAGE PolyKinds #-}
+{-# LANGUAGE RankNTypes #-}
+{-# LANGUAGE ScopedTypeVariables #-}
+{-# LANGUAGE TypeApplications #-}
+{-# LANGUAGE TypeFamilies #-}
+{-# LANGUAGE TypeOperators #-}
+{-# OPTIONS_GHC -fplugin=Polytropos.Plugin #-}
+
+{- |
+Module      : Main
+Description : Milestone 6.2 Institutional Satisfaction & Reduct Property Tests
+Copyright   : (c) 2026 The Penelope Authors
+License     : EUPL-1.2 OR Apache-2.0
+Maintainer  : nadia.yvette.chambers@ik.me
+Stability   : experimental
+Portability : non-portable (GHC extensions)
+
+Property-tests fundamental institutional invariants of the Penelope engine:
+1. Reduct-Evaluation Identity:
+   eval_J(H, sigma_*(P)) === eval_I(sigma^*(H), P)
+   across randomized row permutations, embeddings, and register frame inputs.
+2. Static-Elaboration Commutativity:
+   Static telemetry and metadata extracted by 'StaticPenelope' and
+   'analyzeLivenessAndEffects' commute with higher-order macro elaboration
+   'elaborateAll'.
+
+See Note [Core Architecture] [ref:note-core-architecture],
+Note [Institutional Satisfaction and Zero-Traversal Weakening] [ref:note-satisfaction-weakening],
+Note [Two-Phase Weaving and Unweaving] [ref:note-two-phase-engine], and
+Note [Static Reflection and Cayley Analysis] [ref:note-static-cayley].
+-}
+module Main (main) where
+
+import Control.Monad (forM_)
+import Data.Functor.Const (Const (..))
+import Data.Functor.Identity (Identity (..))
+import Data.Monoid (Sum (..))
+import Data.Primitive.SmallArray (indexSmallArray, newSmallArray, runSmallArray, writeSmallArray)
+import GHC.Exts (Any, unsafeCoerce#)
+import Penelope.Core
+import Penelope.Static
+import Polytropos (Field (..), Record, emptyRecord, gatherRecord, insertField)
+import Polytropos.Core (Pair (..), Rep (..), RowRep (..))
+import Polytropos.RowMorph (composeRowMorph, rowMorph, unsafeMkRowMorph)
+import Test.Hspec
+import Test.Hspec.QuickCheck (prop)
+import Test.QuickCheck
+
+-- Effect signatures for sub-row I
+data OpAdd :: PolyEffect
+data OpMul :: PolyEffect
+data OpSet :: PolyEffect
+type SubEF = '["add" ':= OpAdd, "mul" ':= OpMul, "set" ':= OpSet]
+
+data OpScoped :: PolyHEffect
+type SubEH = '["scoped" ':= OpScoped]
+
+-- Algebraic command language
+data Command
+  = CmdAdd !Int
+  | CmdMul !Int
+  | CmdSet !Int
+  | CmdScopedAdd !Int
+  deriving stock (Show, Eq)
+
+instance Arbitrary Command where
+  arbitrary = oneof
+    [ CmdAdd <$> choose (-50, 50)
+    , CmdMul <$> choose (-5, 5)
+    , CmdSet <$> choose (-100, 100)
+    , CmdScopedAdd <$> choose (-20, 20)
+    ]
+
+-- Distinct permutation generator for embedding [0, 1, 2] into [0 .. n-1]
+data RowEmbedding = RowEmbedding
+  { reWideSize :: !Int
+  , reAddIdx   :: !Int
+  , reMulIdx   :: !Int
+  , reSetIdx   :: !Int
+  , reScopedIdx :: !Int
+  , reWideHSize :: !Int
+  } deriving stock (Show, Eq)
+
+instance Arbitrary RowEmbedding where
+  arbitrary = do
+    wideN <- choose (4, 8)
+    wideM <- choose (2, 5)
+    -- Pick 3 distinct indices in [0 .. wideN - 1]
+    p1 <- choose (0, wideN - 1)
+    p2 <- suchThat (choose (0, wideN - 1)) (/= p1)
+    p3 <- suchThat (choose (0, wideN - 1)) (\x -> x /= p1 && x /= p2)
+    q1 <- choose (0, wideM - 1)
+    pure $ RowEmbedding wideN p1 p2 p3 q1 wideM
+
+-- Smart constructors for SubEF and SubEH operations
+buildAdd :: Int -> Penelope SubEH SubEF '["x" ':= Int] '["x" ':= Int]
+buildAdd k =
+  let retCont = BranchCont (\_ -> route @'["x" ':= Int] @'["x" ':= Int])
+      conts = insertField (Field @"ret") retCont emptyRecord
+  in OpF 0## (rowMorph @'["x" ':= Int] @'["x" ':= Int]) (unsafeCoerce# k) conts
+
+buildMul :: Int -> Penelope SubEH SubEF '["x" ':= Int] '["x" ':= Int]
+buildMul k =
+  let retCont = BranchCont (\_ -> route @'["x" ':= Int] @'["x" ':= Int])
+      conts = insertField (Field @"ret") retCont emptyRecord
+  in OpF 1## (rowMorph @'["x" ':= Int] @'["x" ':= Int]) (unsafeCoerce# k) conts
+
+buildSet :: Int -> Penelope SubEH SubEF '["x" ':= Int] '["x" ':= Int]
+buildSet k =
+  let retCont = BranchCont (\_ -> route @'["x" ':= Int] @'["x" ':= Int])
+      conts = insertField (Field @"ret") retCont emptyRecord
+  in OpF 2## (rowMorph @'["x" ':= Int] @'["x" ':= Int]) (unsafeCoerce# k) conts
+
+buildScopedAdd :: Int -> Penelope SubEH SubEF '["x" ':= Int] '["x" ':= Int]
+buildScopedAdd k =
+  let retCont = BranchCont (\_ -> route @'["x" ':= Int] @'["x" ':= Int])
+      conts = insertField (Field @"ret") retCont emptyRecord
+      subProg :: Penelope SubEH SubEF '["x" ':= Int] '["x" ':= Int]
+      subProg = buildAdd k
+      reg = Region @SubEH @SubEF @('PortSig '["x" ':= Int] '["x" ':= Int]) subProg
+      regions = insertField (Field @"body") reg emptyRecord
+  in OpH 0## (rowMorph @'["x" ':= Int] @'["x" ':= Int]) regions (unsafeCoerce# ()) conts
+
+buildCommand :: Command -> Penelope SubEH SubEF '["x" ':= Int] '["x" ':= Int]
+buildCommand (CmdAdd k)       = buildAdd k
+buildCommand (CmdMul k)       = buildMul k
+buildCommand (CmdSet k)       = buildSet k
+buildCommand (CmdScopedAdd k) = buildScopedAdd k
+
+buildPipeline :: [Command] -> Penelope SubEH SubEF '["x" ':= Int] '["x" ':= Int]
+buildPipeline []     = route
+buildPipeline (c:cs) = buildCommand c `seqPenelope` buildPipeline cs
+
+-- Concrete Handlers
+addHandler :: Handler '[] (FrameKleisli Identity) OpAdd
+addHandler = Handler $ \_inMap payload kConts ->
+  let !(Identity elabK) = indexSmallArray (let RowRep (Rep _ arr) = kConts in arr) 0
+      !(BranchCont retK) = unsafeCoerce# elabK
+      !kVal = unsafeCoerce# payload :: Int
+  in FrameKleisli $ \inF ->
+       let !(Identity xVal) = indexSmallArray (let RowRep (Rep _ arr) = inF in arr) 0
+           !curX = unsafeCoerce# xVal :: Int
+           !newX = curX + kVal
+           !outF = insertField (Field @"x") newX emptyRecord
+       in runFrameKleisli (retK outF) outF
+
+mulHandler :: Handler '[] (FrameKleisli Identity) OpMul
+mulHandler = Handler $ \_inMap payload kConts ->
+  let !(Identity elabK) = indexSmallArray (let RowRep (Rep _ arr) = kConts in arr) 0
+      !(BranchCont retK) = unsafeCoerce# elabK
+      !kVal = unsafeCoerce# payload :: Int
+  in FrameKleisli $ \inF ->
+       let !(Identity xVal) = indexSmallArray (let RowRep (Rep _ arr) = inF in arr) 0
+           !curX = unsafeCoerce# xVal :: Int
+           !newX = curX * kVal
+           !outF = insertField (Field @"x") newX emptyRecord
+       in runFrameKleisli (retK outF) outF
+
+setHandler :: Handler '[] (FrameKleisli Identity) OpSet
+setHandler = Handler $ \_inMap payload kConts ->
+  let !(Identity elabK) = indexSmallArray (let RowRep (Rep _ arr) = kConts in arr) 0
+      !(BranchCont retK) = unsafeCoerce# elabK
+      !newX = unsafeCoerce# payload :: Int
+      !outF = insertField (Field @"x") newX emptyRecord
+  in FrameKleisli $ \_inF -> runFrameKleisli (retK outF) outF
+
+dummyHandler :: Handler '[] (FrameKleisli Identity) OpAdd
+dummyHandler = Handler $ \_ _ _ ->
+  errorWithoutStackTrace "Properties: dummyHandler invoked — index dispatch violation!"
+
+-- Concrete Elaborator for OpScoped
+scopedElaborator :: Elaborator '[] SubEF OpScoped
+scopedElaborator = Elaborator $ \inMap regs _ kConts ->
+  let !(Identity elabBody) = indexSmallArray (let RowRep (Rep _ arr) = regs in arr) 0
+      !(Region body) = unsafeCoerce# elabBody
+      !(Identity elabK) = indexSmallArray (let RowRep (Rep _ arr) = kConts in arr) 0
+      !(BranchCont retK) = unsafeCoerce# elabK
+  in preComposeRoute inMap (unsafeCoerce# (body `seqPenelope` retK emptyRecord))
+
+dummyElaborator :: Elaborator '[] SubEF OpScoped
+dummyElaborator = Elaborator $ \_ _ _ _ ->
+  errorWithoutStackTrace "Properties: dummyElaborator invoked — index dispatch violation!"
+
+-- Make arbitrary-sized Record of handlers/elaborators
+makeWideRecord :: Int -> [(Int, Any)] -> Any -> Record r
+makeWideRecord !n !indexedEntries !dummy =
+  RowRep $ Rep 0 $ runSmallArray $ do
+    arr <- newSmallArray n (Identity dummy)
+    forM_ indexedEntries $ \(idx, val) ->
+      writeSmallArray arr idx (Identity val)
+    pure arr
+
+-- Extract 'x' from a frame
+getX :: Record '["x" ':= Int] -> Int
+getX (RowRep (Rep _ arr)) =
+  let !(Identity x) = indexSmallArray arr 0
+  in unsafeCoerce# x
+
+main :: IO ()
+main = hspec $ do
+  describe "Penelope.Core Milestone 6.2: Institutional Satisfaction & Reduct Properties" $ do
+
+    prop "Reduct-Evaluation Identity: eval_J(H, sigma_*(P)) === eval_I(sigma^*(H), P)" $
+      \(commands :: [Command]) (emb :: RowEmbedding) (initX :: Int) ->
+        let !pipe = buildPipeline commands
+            !inFrame = insertField (Field @"x") initX emptyRecord
+
+            -- Embeddings sigma_ef and sigma_eh
+            !sigmaEf = unsafeMkRowMorph [reAddIdx emb, reMulIdx emb, reSetIdx emb]
+            !sigmaEh = unsafeMkRowMorph [reScopedIdx emb]
+
+            -- Wide handlers and elaborators for J
+            !wideHandlers = makeWideRecord
+              (reWideSize emb)
+              [ (reAddIdx emb, unsafeCoerce# addHandler)
+              , (reMulIdx emb, unsafeCoerce# mulHandler)
+              , (reSetIdx emb, unsafeCoerce# setHandler)
+              ]
+              (unsafeCoerce# dummyHandler)
+
+            !wideElabs = makeWideRecord
+              (reWideHSize emb)
+              [ (reScopedIdx emb, unsafeCoerce# scopedElaborator) ]
+              (unsafeCoerce# dummyElaborator)
+
+            -- 1. Weakened evaluation in J: eval_J(H, sigma_*(P))
+            !pWeakened = weakenRowExplicit sigmaEh sigmaEf pipe
+            !pWeakenedElab = elaborateAll wideElabs pWeakened
+            !(Identity outJ) = runFrameKleisli (interpretAll wideHandlers pWeakenedElab) inFrame
+            !resJ = getX outJ
+
+            -- 2. Reduct evaluation in I: eval_I(sigma^*(H), P)
+            !reductElabs = unsafeCoerce# (gatherRecord (unsafeCoerce# sigmaEh) wideElabs)
+            !reductHandlers = unsafeCoerce# (gatherRecord (unsafeCoerce# sigmaEf) wideHandlers)
+            !pReductElab = elaborateAll reductElabs pipe
+            !(Identity outI) = runFrameKleisli (interpretAll reductHandlers pReductElab) inFrame
+            !resI = getX outI
+
+        in resJ === resI
+
+    prop "Functorial Reduct Transitivity: (sigma2 . sigma1)^*(H) === sigma1^*(sigma2^*(H))" $
+      \(commands :: [Command]) (initX :: Int) ->
+        let !pipe = buildPipeline commands
+            !inFrame = insertField (Field @"x") initX emptyRecord
+
+            -- Intermediate row K (size 4), Final row J (size 6)
+            !sigma1 = unsafeMkRowMorph [1, 2, 0]             -- 3 -> 4
+            !sigma2 = unsafeMkRowMorph [3, 1, 4, 0]          -- 4 -> 6
+            !sigmaComp = composeRowMorph sigma1 sigma2       -- 3 -> 6
+
+            !wideHandlers6 = makeWideRecord
+              6
+              [ (1, unsafeCoerce# addHandler)
+              , (4, unsafeCoerce# mulHandler)
+              , (3, unsafeCoerce# setHandler)
+              ]
+              (unsafeCoerce# dummyHandler)
+
+            -- Single higher-order identity
+            !idEh = unsafeMkRowMorph [0]
+            !elabs1 = makeWideRecord 1 [(0, unsafeCoerce# scopedElaborator)] (unsafeCoerce# dummyElaborator)
+
+            -- Two-step weakening vs composite weakening
+            !pStep1 = weakenRowExplicit idEh sigma1 pipe
+            !pStep2 = weakenRowExplicit idEh sigma2 pStep1
+            !pStepElab = elaborateAll elabs1 pStep2
+            !(Identity outTwoStep) = runFrameKleisli (interpretAll wideHandlers6 pStepElab) inFrame
+            !resTwoStep = getX outTwoStep
+
+            !pComp = weakenRowExplicit idEh sigmaComp pipe
+            !pCompElab = elaborateAll elabs1 pComp
+            !(Identity outComp) = runFrameKleisli (interpretAll wideHandlers6 pCompElab) inFrame
+            !resComp = getX outComp
+
+        in resTwoStep === resComp
+
+  describe "Penelope.Static Milestone 6.2: Static-Elaboration Commutativity Properties" $ do
+
+    prop "Metadata Conservation: spStatic (elaborateStatic elabs sp) === spStatic sp" $
+      \(commands :: [Command]) (metaVal :: Int) ->
+        let !pipe = buildPipeline commands
+            !sp = annotateStatic (Const (Sum metaVal)) pipe
+            !elabs = makeWideRecord 1 [(0, unsafeCoerce# scopedElaborator)] (unsafeCoerce# dummyElaborator)
+            !spElab = StaticPenelope (spStatic sp) (elaborateAll elabs (spPipeline sp))
+        in spStatic spElab === spStatic sp
+
+    prop "Sequential Composition Commutativity: elaborate(sp1 >>> sp2) === elaborate(sp1) >>> elaborate(sp2)" $
+      \(cmds1 :: [Command]) (cmds2 :: [Command]) (m1 :: Int) (m2 :: Int) (initX :: Int) ->
+        let !p1 = buildPipeline cmds1
+            !p2 = buildPipeline cmds2
+            !sp1 = annotateStatic (Const (Sum m1)) p1
+            !sp2 = annotateStatic (Const (Sum m2)) p2
+
+            !elabs = makeWideRecord 1 [(0, unsafeCoerce# scopedElaborator)] (unsafeCoerce# dummyElaborator)
+            !handlers = makeWideRecord
+              3
+              [ (0, unsafeCoerce# addHandler)
+              , (1, unsafeCoerce# mulHandler)
+              , (2, unsafeCoerce# setHandler)
+              ]
+              (unsafeCoerce# dummyHandler)
+
+            -- Composed then elaborated
+            !composed = sp1 `seqStatic` sp2
+            !spCompElab = StaticPenelope (spStatic composed) (elaborateAll elabs (spPipeline composed))
+
+            -- Separately elaborated then composed
+            !sp1Elab = StaticPenelope (spStatic sp1) (elaborateAll elabs (spPipeline sp1))
+            !sp2Elab = StaticPenelope (spStatic sp2) (elaborateAll elabs (spPipeline sp2))
+            !spSepElab = sp1Elab `seqStatic` sp2Elab
+
+            -- Static metadata match
+            !metaMatch = spStatic spCompElab == spStatic spSepElab
+
+            -- Runtime execution match
+            !inFrame = insertField (Field @"x") initX emptyRecord
+            !(Identity outComp) = runFrameKleisli (interpretAll handlers (spPipeline spCompElab)) inFrame
+            !(Identity outSep) = runFrameKleisli (interpretAll handlers (spPipeline spSepElab)) inFrame
+            !execMatch = getX outComp == getX outSep
+
+        in metaMatch && execMatch
+
+    prop "Structural Liveness Invariant: port read footprint is invariant under elaborateAll" $
+      \(commands :: [Command]) ->
+        let !pipe = buildPipeline commands
+            !elabs = makeWideRecord 1 [(0, unsafeCoerce# scopedElaborator)] (unsafeCoerce# dummyElaborator)
+            !pipeElab = elaborateAll elabs pipe
+
+            !repPre = analyzeLivenessAndEffects pipe
+            !repPost = analyzeLivenessAndEffects pipeElab
+
+            -- Port read set is strictly preserved
+            !readSlotsPreserved = lrReadFrameSlots repPre == lrReadFrameSlots repPost
+
+            -- Higher-order regions are unrolled to zero
+            !regionsUnrolled = lrTotalRegions repPost == 0
+
+            -- Branching factor bound is maintained
+            !branchFactorSound = lrMaxBranchingFactor repPost <= max 1 (lrMaxBranchingFactor repPre)
+
+        in readSlotsPreserved && regionsUnrolled && branchFactorSound
