We present a novel reductive theory of type-identity physicalism, which is inspired by the foundations of statistical mechanics as a general theory of natural kinds. We show that all the claims mounted against type-identity physicalism in the literature don’t apply to Flat Physicalism, and moreover that this reductive theory solves many of the problems faced by the various non-reductive approaches including functionalism. In particular, we show that Flat Physicalism can account for the appearance of multiple realizability in the special sciences, (...) and that it gives a novel account of the genuine autonomy of the kinds and laws in the special sciences. We further show that the thesis of genuine multiple realization, which is compatible with all forms of non-reductive approaches including functionalism, implies what we call token-dualism; namely the idea that in every token there are non-physical facts, which may either be non-physical properties or some non-physical substance. In other words, we prove that non-reductive kinds necessarily assume non-reductive tokens, i.e., token dualism. Finally, we show that all forms of non-reductive approaches including functionalism imply a literally multi-leveled structure of reality. (shrink)