Phase 3: Material Valuation System Energy Density + Scarcity Formula: Price = (Energy Content × Processing Energy × Scarcity Factor × Utility Premium) ÷ Bitcoin Energy Unit Wood Example: Pine 2x4 lumber: • Raw energy: 15 MJ/kg = 4.17 kWh/kg • Processing energy: 2 kWh/kg (sawing, drying) • Total: 6.17 kWh/kg = 4,113 sats/kg • Standard 2x4 (2.5 kg) = ~10,300 sats Old-Growth Redwood: • Same base energy: 4.17 kWh/kg • Processing: 3 kWh/kg (careful handling) • Scarcity multiplier: 25x (centuries to grow) • Utility premium: 3x (superior strength) • Total: (7.17 × 25 × 3) = 538 kWh/kg = 358,667 sats/kg • Equivalent board = ~896,667 sats (0.009 BTC)