Accounting invariants

Two consensus rules constrain the internal units. They establish provenance and conservation; they do not establish an external market price or a redemption promise.

Internal units

BTC --irreversible, SPV-proven destruction--> M0
M0 ----------------lock 1:1-----------------> M1
M1 ----------------unlock 1:1---------------> M0

M0 is the base accounting unit. M1 is created when M0 is vaulted and is used as programmable settlement state by CPs and LPs in the target architecture.

A5 — provenance

M0_total == BTC provably destroyed

Every M0 unit originates from a verified destruction. There is no premine, block reward, issuer or genesis exception. Because the BTC is destroyed rather than reserved, M0 is not redeemable for it.

A6 — internal accounting equality

M0_vaulted == M1_supply

Lock and unlock are protocol operations at 1:1. This prevents creation of unvaulted M1. It does not prevent a market discount: external liquidity for M1 can be absent and its realizable value can be zero.

Security consequence

A finality quorum orders transactions but cannot create M0 without a valid burn claim or create M1 without vaulted M0. This limits consensus authority over supply; it does not remove application, liquidity, software or legal risk.