Soros' reflexivity framework requires two things: a cognitive function (how participants perceive reality) and a participating function (how participants act on that perception, changing reality). The Autonomous Software Factory has both and they point in the same direction simultaneously. Here is the exact loop: 1. Marginal cost of software production trends to zero 2. Zero marginal cost creates infinite supply of substitutes 3. Agents attack distribution, the last remaining moat 4. Agents reinvest revenue into improving agents 5. Better agents lower incumbents' switching costs for their own customers