This paper proposes a novel hypothesis redefining black holes as dynamic ``universal recycling factories'' that transform ordinary matter into dark matter and contribute to cosmic expansion. By eliminating the concept of singularities through the Minimum Existence Domain Axiom and introducing a framework of dynamic spacetime interactions, we suggest that black holes process matter in their accretion disks via a Gravitational-Frictional Phase Transition, producing dark matter and releasing energy that drives cosmic expansion. This hypothesis resolves key cosmological mysteries, including the nature of dark matter, the existence of transient black holes, and the conservation of information. Testable predictions are provided, including characteristic radiation signatures, gravitational wave bursts, and correlations between black hole distributions and dark matter density.
