Phase 3 - First Public Release
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The first incremental release with generally complete functionality is Phase 3 - First Public Release, the first public release. As such, the result of this phase should be sufficient for a public capability of some longevity, even should later increments not be undertaken.
Phase 3 can be generally understood to correspond to the "baseline" system, and should be defined as such. New or risky developments or changes should generally be considered as more appropriate to Phase 4.