The Fundamental Equation: Energy as the Physical Manifestation of Distinction-Making

Every physical process, measurement, or information exchange requires distinguishing between different states. We propose that this distinction-making constitutes the fundamental activity un- derlying all physical phenomena, with energy representing the quantitative measure of distinction- making processes manifesting in spacetime. From information-theoretic variational principles, we derive the relationship E = κD connecting energy to distinction magnitude D, where κ exhibits scale-dependent manifestations interpolating between Landauer’s principle (κthermal = kB T ln 2) and Planck-scale limits (κP = ℏc/lp). This framework provides a process ontology resolving longstand- ing puzzles: the measurement problem in quantum mechanics, the physical efficacy of information, and the hard problem of consciousness. We propose experimental protocols testing the linear rela- tionship across quantum, biological, and neural systems, with specific predictions for consciousness emergence at exactly three levels of recursive distinction-making depth.