I thought I might report a bit about what I’ve been up to with coinduction. Headline: we can set up propositional equality so that every coprogram equals its unfolding, even though that had jolly well better not hold definitionally if we want decidable anything.
What I’ve got is an Agda universe with inductive and coinductive Petersson-Synek trees (also known as Hancock-Setzer interaction structures). Actually, it’s a pair of universes—PROP and SET. Equality is a proposition computed recursively over the structure of sets and elements.
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