06 · Burns: M0, tickets, reactivation

Normative source: N-SPEC v0.7, preamble, §1.4, §4.4, §4.6, §4.9, §6.7, §12.1, §12.2; WHY-N §3; APP-SPEC v1 draft §0.4, §IMP.1, §IMP.4, §OBJ.2, §R2P. This page explains; it does not restate rules or parameter values.

M0 is the settlement asset used between providers. Using M0 does not require burning BTC. A participant can receive and spend existing M0. Creating new M0 and moving existing inventory are different operations. APP-SPEC v1 draft §R2P, R2P-1, §OBJ.2, OBJ-7, §IMP.1

Use before origin

A provider uses M0 inventory for settlement; fees also move existing M0. New M0 comes only from eligible burns imported under the rules. A burn must satisfy the import conditions before it becomes available M0; an eligible burn awaiting maturity or deferred import is not yet part of the materialised supply. APP-SPEC v1 draft §IMP.1, §IMP.4; N-SPEC v0.7, preamble

Burns have different purposes. Creating settlement inventory, obtaining production weight and restoring suspended rights are distinct effects. A ticket is not spendable M0, and a burn is not a deposit that can be withdrawn. N-SPEC v0.7 §1.4, invariants 1–4, §4.6, §4.9, §6.7

Different burns, different effects

Burn	Effect
M0 burn	Creates M0, the settlement asset, through eligible import. N-SPEC v0.7 §4.9; APP-SPEC v1 draft §IMP.1
TICKET, with NEW or ADD	Adds ticket rights to a registered identity, subject to admission and activity rules. It creates no M0. N-SPEC v0.7 §4.6, §1.4, invariant 1
REACT	Restores suspended participation rights under the reactivation rules. It creates no M0. N-SPEC v0.7 §6.7, §1.4, invariant 1

NEW and ADD express different intentions but grant the same kind of ticket right. An ADD does not itself reactivate an excluded identity. A REACT concerns the identity's exclusion record; it is not another source of settlement inventory. N-SPEC v0.7 §4.6, §6.7

M0 has a Bitcoin origin

Every M0 unit comes from burned bitcoin. A burn creates no reserve and no claim on Bitcoin. The destroyed bitcoin cannot be recovered by returning M0. The provenance describes where M0 comes from; it does not create a promise to return BTC. N-SPEC v0.7 §4.9; WHY-N §3

The materialised supply counts imported eligible burns; pending sources are reported separately. APP-SPEC v1 draft §IMP.4

There is no premine, issuer or block reward. Fees transfer existing M0 rather than create it. Conservation remains an application obligation within each history; N's choice of history does not establish it by itself. N-SPEC v0.7, preamble, §1.4, invariants 2 and 12; WHY-N §3

A ticket remains an entry cost

Ticket rights are neither refundable nor transferable. They remain acquired until a ban, while exclusion suspends their active use. Inactivity does not turn a ticket into M0, and reactivation does not recover the bitcoin spent at entry. N-SPEC v0.7 §1.4, invariants 1–4, §6.7

Fingerprints are a separate use

Admissible burns can also carry fingerprints for H1. A fingerprint may contribute to a wait or STOP; it cannot promote a branch or add score. This detector role is distinct from creating M0 or obtaining participation rights. N-SPEC v0.7 §12.1, §12.2

An M0 burn's optional reference does not control M0 creation. An absent, unknown or losing reference does not block creation from an otherwise admissible M0 burn. Its use as a fingerprint has separate conditions. N-SPEC v0.7 §4.9