diff --git a/NEXT-PHASE.md b/NEXT-PHASE.md
index 99b7a86..9db0839 100644
--- a/NEXT-PHASE.md
+++ b/NEXT-PHASE.md
@@ -11,6 +11,8 @@
 
 ## 🚀 Phase 2: Core Contracts (NEXT)
 
+**Note**: Phase 2 includes ongoing integration with development agents (castquest-code) for autonomous protocol evolution, building upon the Smart Brain foundation established in Phase 1.
+
 ### Priority 1: CAST Token Implementation
 
 **File**: `packages/contracts/contracts/CAST.sol`
@@ -122,9 +124,42 @@ contract MediaTokenFactory {
 }
 ```
 
-### Priority 3: Bonding Curve Market
+### Priority 3: Agentic Development Foundation
+
+**Integration with `castquest-code` for autonomous protocol expansion:**
+
+This priority establishes the foundation for AI-powered development workflows within the CastQuest protocol:
+
+- **Autonomous Protocol Expansion**: Integration with `castquest-code` (from SMSDAO) enables automated proposal and scaffolding of new protocol features, contracts, and extensions.
+  
+- **Automated Test Generation**: For future V4-only custom contracts following a "reduced external dependency" principle, development agents automatically generate comprehensive unit tests, ensuring code quality and security.
+  - Target for V4-only custom contracts: minimize external dependencies (ideally no new OpenZeppelin imports, no proxies, and pure token operations), while allowing existing core contracts to continue using audited libraries like OpenZeppelin where appropriate
+
+- **CODE Token Reward Mechanism**: Define and implement the CODE token distribution system that rewards validated code contributions from:
+  - Autonomous builders and agents
+  - Smart contract generation and audits
+  - Protocol improvements and optimizations
+  - Documentation and testing contributions
+
+- **Smart Brain Integration**: The protocol's Smart Brain architecture coordinates with development agents to:
+  - Evaluate code quality and security
+  - Validate contributions before CODE token distribution
+  - Track contribution history and reputation
+  - Enable continuous, agent-assisted protocol evolution
+
+**Implementation Tasks**:
+- [ ] Define CODE token reward tiers and validation criteria
+- [ ] Integrate castquest-code agent framework
+- [ ] Build automated contract scaffolding pipeline
+- [ ] Implement test generation for custom contracts
+- [ ] Create contribution validation and audit system
+- [ ] Deploy CODE token minting logic in CodeEngine
+
+---
+
+### Priority 4: Bonding Curve Market
 
-**File**: `packages/contracts/contracts/MarketPlace.sol`
+**File**: `packages/contracts/contracts/market/Marketplace.sol`
 
 ```solidity
 // SPDX-License-Identifier: MIT
diff --git a/docs/architecture/V4.md b/docs/architecture/V4.md
index d6939e9..b0fd1e0 100644
--- a/docs/architecture/V4.md
+++ b/docs/architecture/V4.md
@@ -35,7 +35,7 @@ Five vertical-specific tokens with no supply caps:
 - **MEDIA** - Media creation and rewards
 - **FRAME** - Frame-related actions
 - **GAME** - Game asset economics
-- **CODE** - Code generation rewards
+- **CODE** - Code generation rewards for autonomous builders and AI agents
 - **AGENT** - AI agent operations
 
 These are minted by their respective Engines and used for fees, rewards, and liquidity.
@@ -168,7 +168,7 @@ Engines:
 ├── MediaEngine.sol    ← Mints MEDIA, creates media assets
 ├── FrameEngine.sol    ← Mints FRAME, processes frames
 ├── GameEngine.sol     ← Mints GAME, handles game logic
-├── CodeEngine.sol     ← Mints CODE, manages code gen
+├── CodeEngine.sol     ← Mints CODE, manages autonomous code generation, audits, and agentic incentives
 └── AgentEngine.sol    ← Mints AGENT, AI operations
 ```
 
@@ -247,6 +247,17 @@ Users choose when to adopt V4 based on:
 - SubDAO features
 - Lower gas costs on Base
 
+## Agentic Development Integration
+
+V4's Smart Brain architecture is the combined on-chain governance and upgrade surface plus off-chain agent orchestration layer (AI agents, code-generation pipelines, and security tooling) that coordinates agentic development of the protocol. It is specified in more detail in [Smart Brain Architecture](./SmartBrain.md).
+V4's Smart Brain architecture integrates with agentic development frameworks to enable:
+- **Autonomous Protocol Expansion**: AI agents (e.g., castquest-code from SMSDAO) can propose and scaffold new protocol features off-chain
+- **Automated Contract Generation**: Off-chain development agents (via Smart Brain/CI) generate, audit, and deploy smart contracts; the on-chain CodeEngine does not call external systems and only verifies submitted results/metadata
+- **CODE Token Rewards**: Once results are verified on-chain, CodeEngine mints and distributes CODE tokens to reward validated contributions from AI-powered development tools, agentic protocol expansion, and automated smart contract generation
+- **Continuous Evolution**: The protocol evolves through a combination of human governance and AI-assisted, off-chain development, with on-chain contracts remaining pure and free of external dependencies
+
+This creates a flywheel where protocol improvements are incentivized through CODE tokens, enabling sustainable, community-driven growth while preserving the "No External Calls" and "No External Dependencies" guarantees of the on-chain system.
+
 ## Security Guarantees
 
 1. **Supply Caps**: Enforced on-chain, cannot be bypassed