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feat(wallet): stage derived-hash CAT arrivals, promote only lineage-proven coins - #393

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feat(wallet): stage derived-hash CAT arrivals, promote only lineage-proven coins#393
MichaelTaylor3d merged 28 commits into
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@MichaelTaylor3d MichaelTaylor3d commented Aug 28, 2026

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DO NOT MERGE — round-7 gate not yet run. Draft until the full security leg returns on the new head.

PR-B of the #383 split, now carrying the third tier as well. A coin discovered at a derived CAT
hash or by hint is staged; only coins a lineage proof establishes are written to coins, fully
attributed. coins keeps exactly origin/main's semantics.

Shape decision (normative): #383 (comment)
Round-6 security verdict: #393 (comment)
Orchestrator ticket: #390

Closes #394.
Refs #380. Refs #382.

On the Closes keywords, and the PR-A ordering

The round-6 gate was right that Closes #380 overstated: #380 asserts an end-to-end outcome — a
real wallet reporting its real $DIG figure — and on the shipped node nothing calls promote on the
frame path, because CatAttributor is constructed only under cfg(test)
(sync.rs:2858, inside the #[cfg(test)] module opened at sync.rs:1248) while production passes
None (sync_supervisor.rs:2364). Verified again on this head.

Decision: #393 does NOT carry the wiring, and drops to Refs #380.
PR #391 is the wiring half and closes #380 when
it merges. Reasons, in order of weight:

  1. A second wiring here would be a rival implementation of one that already exists. fix(wallet): run CAT attribution in production so a funded wallet can name its $DIG #391 is
    1,331 additions across sync.rs, sync_supervisor.rs, rpc.rs, db.rs, fallback.rs,
    singleton.rs and service.rs — six of the seven files this PR touches. Threading a
    LineageSource into ChiaPeerSession a second time guarantees a conflict and leaves two
    spellings of the same wiring in flight.
  2. Ordering: this PR first, fix(wallet): run CAT attribution in production so a funded wallet can name its $DIG #391 rebases onto it. fix(wallet): run CAT attribution in production so a funded wallet can name its $DIG #391 must rebase either way; better onto
    merged main than that a security fix rebases onto an ungated draft. This PR is the smaller
    diff and it closes a live primitive; fix(wallet): run CAT attribution in production so a funded wallet can name its $DIG #391 is functionality.
  3. The gate's actual requirement is met — "what must not happen is feat(wallet): stage derived-hash CAT arrivals, promote only lineage-proven coins #393 merging with
    Closes #380 while nothing in production ever calls promote". It no longer claims that.

What this PR does do about the wiring, because it is cheap and in the diff already: the one
promotion site that DOES run on a shipped node (refresh_tracked_coins) was let _ = ...,
discarding both the counts and the cause. It now logs. A wallet whose $DIG never appeared previously
produced no evidence anywhere of why.


Round 7 — what changed, per gate finding

GATING 1 (CRITICAL) — the catch-up admitted a fabricated coin as XCH

Fix. The union that widens the peer REQUEST moved from the supervisor call site into
initial_sync_with_authority, and the admission set is built from addresses with derived hashes
filtered out rather than merely not added.

file:line
union removed from the call site crates/dig-wallet/src/sage/sync_supervisor.rs:1379-1389
union performed for the REQUEST only crates/dig-wallet/src/sage/sync.rs:1076-1084
admission set filters derived hashes crates/dig-wallet/src/sage/sync.rs:1058-1074
coverage recorded as addresses (also closes finding 6) crates/dig-wallet/src/sage/sync.rs:1147
trait parameter renamed addresses crates/dig-wallet/src/sage/sync_supervisor.rs:812-838, 2322

A caller cannot widen admission even by passing a derived hash as an address — that is what the
filter buys over an ordering fix, and it is asserted directly.

Mutation transcript. subscribed rebuilt as the union again
(addresses.iter().copied().chain(derived.hashes()).collect()):

test the_catch_up_never_admits_a_derived_hash_coin_as_xch ... FAILED
  assertion failed: only the ordinary p2 coin may enter `coins` on the catch-up path
    left: 2   right: 1
test a_derived_hash_offered_as_an_address_is_refused_admission ... FAILED
  assertion failed: a derived hash passed as an address must still not admit its coin
    left: 1   right: 0

Restored by file copy, git status --porcelain empty afterwards.

Fixture note. Every pre-existing catch-up test passed DerivedCats::default() — the field
collapse that made this defect invisible. The supervisor's test double now forwards the real
derived set into the real catch-up instead of defaulting it, and records the set actually put on the
wire, so coverage and admission are separately observable. Without the second recorder, "the coin
was not admitted" is satisfied identically by a catch-up that stopped subscribing derived hashes,
which is #380's starvation.

GATING 2 (CRITICAL) — 64 mojos bought permanent starvation and unbounded reads

Fix. The queue is ordered attempts ASC, seq ASC and a row is eligible only if it has not been
read within PROMOTION_RETRY_COOLDOWN (1 h). No row is ever deleted for failing.

file:line
queue ordering + cooldown crates/dig-wallet/src/sage/db.rs:1706-1762
attempt accounting crates/dig-wallet/src/sage/db.rs:1764-1780
every inconclusive outcome meters a read crates/dig-wallet/src/sage/cat_discovery.rs:296-348
the cooldown, and why crates/dig-wallet/src/sage/cat_discovery.rs:62-83
schema + idempotent migration crates/dig-wallet/src/sage/db.rs:409-428, 627-630
a failed read is no longer reported as absence crates/dig-wallet/src/sage/fallback.rs:519-546

I did not implement the never-existed / unavailable classification the gate named, and the reason
is load-bearing.
A coinset source answers a null coin_solution both for a spend it has never
heard of and for one it is merely behind on, so a terminal refusal built on that answer converts a
brief outage into permanent erasure of a real coin — the one failure direction this design refuses.
I checked whether the distinction is available: chia-query's inner coinset client exposes an
absence-aware get_puzzle_and_solution_opt, but the ChiaQuery facade does not, so lifting it
is a chia-query release this PR will not take. So the cost is bounded rather than the cause
classified — starvation removed by the ordering, amplification bounded by the cooldown at
staged rows / cooldown instead of cap per pass. Argued in full on
cat_discovery.rs:62-83. If a later round disagrees, the classification is additive on top of this,
not a replacement for it.

ChiaQueryLineage::parent_spend did stop manufacturing Ok(None) — the value callers read as "the
chain has no such spend"
— out of every DNS failure, timeout and 500. It now returns Err, which
callers already treat as "retry later". reconstruct_all keeps per-coin resilience explicitly so one
flaky read cannot abandon a whole attribution pass.

Mutation transcript. Queue reverted to ORDER BY seq ASC with no cooldown:

test a_wall_of_unresolvable_coins_cannot_starve_an_honest_one ... FAILED
  an honest coin behind a wall of unresolvable ones must still promote:
    PromoteStats { promoted: 0, refused: 0, deferred: 64 }
    left: 0   right: 1
test promotion_reads_are_bounded_and_never_repeated ... FAILED
  a second pass may read only the row that has never been read
    left: 64   right: 1
test the_queue_serves_fewest_attempts_first_and_honours_the_cooldown ... FAILED

deferred: 64 reproduces the gate's own probe exactly. The other 8 tests in the module stayed green.

On the weakened assertion the gate called out. promotion_reads_are_bounded_and_never_repeated
did not test "never repeated" — it settled for second <= cap with a comment conceding that
deferred rows "ARE re-read". It now asserts second == 1, and the number is the assertion:
over is one past the cap, so exactly one row has never been read while the other 64 are inside
their cooldown. My first attempt asserted 0 and the fixture caught it — zero would mean a
never-tried row was skipped, which is a different bug.

GATING 3 — SPEC §18.11a

Rewritten against the diff, not against intent: SPEC.md:5408-5502.

clause before now
"never to coins" false — catch-up admitted them true, and extended to bind all three tiers
"only when a read of its parent spend reconstructs it" did not describe the catch-up true, with the predicted/unpredicted branches spelled out
"coins MUST retain exactly the semantics it has" false true
"in particular not counted as XCH" false true, pinned by test
"at most one parent-spend read per staged coin and is terminal" false of the deferral an attacker chooses replaced: terminal per verdict, bounded by rate
the vacuous clause (finding 4) implied a capability now states plainly that frame-path promotion does not run in production, and points at #382

Added because the code now says them: the coverage/admission split as a normative invariant; the
hint tier; the ordering and cooldown; the deliberate non-classification of a never-existing parent;
the claim-before-write rule.

HIGH 4 — the promotion path

See the Closes decision above. Refs #380; the live site now logs.

FOLDED IN — #394, the third tier

refresh_tracked_coins upserted coin_records_by_hints straight into coins with
asset_id = NULL. A hint is chosen freely by whoever creates the coin, so this was the same
fabricated-XCH and send-kill-switch primitive reachable with no peer at all — the coinset oracle
serves it — and live on main today.

Routed through the same staging table rather than given a third guard, which is the gate's
judgement and I agree with it: three guards that must agree is what produced this defect at three
tiers.

file:line
shared row-level router crates/dig-wallet/src/sage/cat_discovery.rs:196-260
wired into the point-read tier crates/dig-wallet/src/sage/rpc.rs:3105-3145
promotion accepts an unpredicted claim only to an address we control crates/dig-wallet/src/sage/cat_discovery.rs:424-450

A first cut of this was wrong and a green suite did not hide it. Staging only coins at a derived
hash for a known asset dropped every non-$DIG hinted CAT — and the hint read is the wallet's only
path to one. refresh_tracked_coins_feeds_cat_selection_and_build_sign failed, which is exactly
what it is for. Unpredicted coins are now staged with an empty sentinel and proven from the parent
spend alone: the reconstruction must name this coin id and hint it to an address this wallet
controls. Same strength of claim, reached without a prediction to check against.

Mutation transcript. Router bypassed ((fetched_rows.clone(), Vec::new())):

test a_hinted_coin_is_staged_while_a_coin_at_our_own_hash_is_admitted ... FAILED
  only the coin at our own puzzle hash is admitted
    left: 2   right: 1
test refresh_tracked_coins_feeds_cat_selection_and_build_sign ... FAILED
  a coin found by HINT is staged, never upserted straight into `coins`
    left: 1   right: 0

Non-gating 5, 6, 7 — all fixed, since the files were open

  • 5 (MEDIUM, promotion races the rollback). promote_cat_admission now DELETEs the staged row
    first and gates the coin write on rows_affected() == 1, in one transaction
    (db.rs:1808-1860). promote_one gained a three-way Promotion outcome so a row that vanished
    mid-read is counted deferred, not refused — "not promoted" was covering a terminal verdict and
    a non-verdict alike (cat_discovery.rs:399-460).
  • 6 (LOW, covered_puzzle_hashes). Closed as a by-product of finding 1: coverage is recorded
    from addresses, so the ninth puzzle-hash-shaped set no longer exists.
  • 7 (LOW, per-coin SELECT). existing_coin_ids is one IN (...) query (db.rs:1786-1806).
    It sits on the peer frame path, where the batch size is the peer's choice.

Blast radius checked

gitnexus has no index for this worktree; building one was not attempted inside the §2.0
ten-minute bound, so the radius was established by git grep plus reading plus a full
cargo check --workspace --all-targets (clean). Stating the fallback per §2.0 bound 2.

symbol callers what changed
initial_sync_with_authority 1 production, 10 test param is now the ADMISSION set; builds the request union itself
SyncSession::catch_up 1 impl + 1 test impl param renamed addresses; semantics narrowed
staged_cat_admissions 1 production, 2 test gains retry_cutoff; ordering changed
promote_staged_cats 2 production, 10 test, 1 integration gains owned_p2
promote_cat_admission 1 returns bool; deletes before writing
promote_one 1 returns Promotion
existing_coin_ids 2 one query instead of N
ChiaQueryLineage::parent_spend 4 call sites Err on an unsuccessful read instead of Ok(None)
reconstruct_all 2 skips a coin on Err instead of propagating

Verified NOT to leak outside the crate: grep for every changed symbol across the workspace
returns zero hits outside crates/dig-wallet/. dig-node-core and dig-runtime compile
unchanged.

Deliberately unchanged, each re-verified: followed_puzzle_hashes and set_watched are still
addresses-only; record_arrivals still receives session.subscribed, which stays addresses-only,
so the sync.rs:957 false-payment class remains unreachable by construction; the reorg rollback
transaction, the staging eviction bound and the promote_one coin-id binding check are untouched —
all four cleared by the round-6 gate and none of them in this diff's path.

detect_changes() unavailable for the same reason as gitnexus; git diff --stat 44bacb6e..HEAD is
9 files, all expected.

Gates

cargo test -p dig-wallet          685 + 22 + 8 passed, 0 failed
cargo clippy -p dig-wallet --all-targets -- -D warnings    clean
cargo check --workspace --all-targets                      clean
cargo fmt --all                                            applied

dig-wallet 0.39.0 to 0.40.0, dig-node 0.160.0 to 0.161.0. Under 0.x the minor slot is
the breaking slot, and this round makes three pub signatures breaking, so 0.40.0 still covers it.
CHANGELOG.md left to git-cliff.

Dependency freshness is unchanged from round 6 and was cleared there: the chia-* set is held at
0.36.1 because chia-wallet-sdk 0.36.0 is the published tip and moving the set alone would ship the
crate split across two chia lines; dig-node-control-interface is a deliberate pin.

What I could NOT prove by execution

Stated plainly, since a report that hides this is worse than one that names it.

  • No live peer session. Finding 1's fix is proven through initial_sync_with_authority with the
    exact vector the supervisor constructs, and through the supervisor harness — but not over a real
    socket. Same one-seam-short position the round-6 gate recorded for its own probe.
  • No real-wallet re-run this round. The round-6 measurement (948/1/0 then
    {promoted: 8, refused: 0, deferred: 0} then dig_balance 3856455, XCH unchanged) is unchanged
    in its code path, but I did not re-execute it against a fresh replica copy on this head.
  • Finding 5's race is proven by construction, not by a forced interleaving. The DELETE-first
    ordering makes the interleaving unobservable rather than tested; I did not build a harness that
    drives a rollback into the window.
  • The cooldown's wall-clock behaviour is proven at the query layer, not end to end.
    promote_staged_cats reads the clock internally, so the pinned-NOW test exercises
    staged_cat_admissions and record_promotion_attempt directly. The end-to-end tests observe the
    cooldown only in the direction real time gives them (a second pass inside the hour).
  • No mutation coverage of the SPEC text, which is prose. Each clause was checked against a
    file:line in this diff by hand; the table above is that check, not a tool's output.

Round 9 — the DID ownership guard was vacuous; bound, and the claim bounded

The round-9 gate found the ninth defect on the DID branch of the reconstruction, and its remedy is now
in. Read the scope of the claim before the fix, because both directions of overstatement are wrong.

This exploit is NOT a regression, and this PR is a net security improvement. At the merge-base
singleton.rs:436 (reconstruct_coins) calls db.upsert_did with no ownership test at all, fed by
rpc.rs:3105-3116 upserting every hinted coin — the identical forged row lands on main today. Nothing
in this PR made a user worse off; what could not ship was a normative SPEC.md MUST claiming an
ownership property the code did not have.

And it is identity fabrication, not balance fabrication. The forged run wrote coins rows = 0: no
balance, nothing selectable, no spend enabled. A fabricated dids row is still a real harm — every
identity surface reading that table then asserts something false — but it is not the money path, and
conflating the two would be its own kind of dishonesty.

The defect

Did::parse_child (chia-sdk-driver-0.36.0/src/primitives/did.rs:245-259) assigns
info.p2_puzzle_hash = hint verbatim from the parent spend's CREATE_COIN memo, which anybody able
to spend any DID may write. The SDK's construction path checks that hint against reality
(did.rs:80-82); its read path does not, and singleton.rs added no compensating check — so the
downstream ownership guard at cat_discovery.rs:424 tested an attacker-written value. The NFT arm was
always sound: nft.coin is derived from nft.info, and the coin-id equality at that arm commits to it.

The fix, and where it lives

crates/dig-wallet/src/sage/singleton.rs:169-186 — recompute the singleton puzzle hash from the parsed
info and require it to equal the real child coin's:

let reconstructed_puzzle_hash: Bytes32 = did.info.puzzle_hash().into();
if reconstructed_puzzle_hash == child.puzzle_hash { .. } // else fall through to Unknown -> Disproven

puzzle_hash() is curried over p2_puzzle_hash, so a lie about the owner cannot reproduce the on-chain
coin. An honest DID pays nothing: its child is built from that same hash, equal by construction.

It is in the reconstruction, not at the promotion site, and that placement is load-bearing. Fixing
only promote_singleton would have left the wider pre-existing reconstruct_coins path open, which
writes dids with no ownership test of its own. Closing that path is a real improvement over main, not
merely a fix to this branch, and reconstruct_coins_writes_no_did_row_for_a_forged_hint proves it by
execution rather than by reading — the gate's own stated coverage gap.

Proven by mutation, entering above the narrowing

Binding mutated out (if true || reconstructed_puzzle_hash == child.puzzle_hash), full suite:

a_did_hinted_to_us_but_owned_by_a_stranger_is_refused ... FAILED
  PromoteStats { promoted: 0, resolved: 2, refused: 0, deferred: 0 }   <- forged DID counted as SUCCESS
a_did_whose_hint_disagrees_with_its_puzzle_is_not_reconstructed ... FAILED
  left: Did { .. owner_p2: "5a5a..5a" }  right: Unknown                <- the victim named as owner
reconstruct_coins_writes_no_did_row_for_a_forged_hint ... FAILED
  left: 1  right: 0                                                    <- the wider path, forged dids row
test result: FAILED. 689 passed; 3 failed

Restored: git status --porcelain empty, 692 passed / 0 failed. The two pre-existing singleton
tests (an_owned_nft_and_did_survive_the_point_read_tier,
a_singleton_owned_by_a_stranger_is_refused) stayed ok under the mutation — they could not see this,
which is exactly why it survived round 8.

Fixture design — the hint is varied INDEPENDENTLY of the true owner, which is the one thing no
previous fixture did. mint_did_and_nft transfers with Did::transfer, which derives the hint from
the destination p2 hash, so hint and owner agree in every row it produces, and a fixture whose two
fields can never disagree cannot see a guard reading the wrong one. mint_did_hinted_to_a_stranger
spends Mallory's DID keeping her p2 while hinting the victim; the simulator accepts the spend, because a
memo is free-form data consensus does not constrain. The end-to-end test carries an honest DID
alongside
the forged one, with both p2 hashes in ours, so a guard that refused every DID — a
regression that would break the wallet — fails the test rather than passing it.

Entry is route_point_read_rows -> stage_cat_admissions -> promote_staged_cats, never
db.upsert_coin. Three-for-three in this family.

SPEC and docs

  • F1SPEC.md §18.11a gains "A reconstructed singleton MUST reproduce its own coin", stating
    the binding as its own normative clause and naming the DID read path it exists for. The preceding
    "never the hint" clause is now true as written.
  • F3Disproven covers five cases, not four; the fifth is a coin that reconstructs to
    nothing the wallet may hold at all (cat_discovery.rs:498).
  • F4StagedCatRow's doc comment restored (db.rs): PromotedSingleton had been inserted
    between the block and the struct, so it wore StagedCatRow's rustdoc and StagedCatRow had none.

Blast radius checked

reconstruct_parsed's upstream callers: reconstruct (singleton.rs) -> reconstruct_coins /
reconstruct_all, and promote_one in cat_discovery.rs. Both DID consumers are covered by the three
new tests. The change adds a refusal branch on one arm of one function; it cannot widen admission. Suite
692 / 22 / 8, cargo fmt --all -- --check exit 0, cargo clippy --workspace --all-targets 0 errors.

Not fixed, deliberately

is_asset_owned binds asset_id raw for the nfts/dids queries while normalising it for coins
(db.rs:2963-2979). Pre-existing and outside this diff — recorded here rather than fixed or filed.

MichaelTaylor3d and others added 11 commits August 28, 2026 01:05
…/discard path

Salvaged from a lane the watchdog killed mid-implementation, with 232 lines
uncommitted. VERIFIED: cargo check -p dig-wallet passes on this tree.

Derived-hash arrivals stage here; only a lineage-proven coin is written to
`coins`, fully attributed. `coins` keeps origin/main's semantics exactly, so a
fabricated coin is unreachable by ABSENCE from the table its 22 readers read,
rather than by a guard each of them must remember to apply.

A staging table rather than a lineage_proven column because this PR family twice
proved its own enumerations incomplete: SPEC 18.11a named the puzzle-hash sets, a
lane found seven, a gate found an eighth -- and that eighth was exactly where a
false "you were paid" notification came from.

INCOMPLETE. The lane's last words were "now the reorg rollback must unmake staged
rows too", and that is not done. A reorg that rolls `coins` back above the fork
must roll staged rows back with it, or a staged row outlives the chain state that
justified it and can later be promoted against a fork that no longer exists.

Refs #390

Co-Authored-By: Claude <noreply@anthropic.com>
…e on reorg

A staged row records an OBSERVATION of chain state, not money. A rollback deletes
the state that observation was made against, so a row left behind can later be
promoted against a fork the chain no longer has -- writing into coins on the
strength of undone history. Deleted by the same predicate, in the same
transaction, as the coin rows. A spend above the fork is cleared rather than the
row deleted, since the coin's own creation is still confirmed.
…ry arrival

A CoinState carries no hint, so a wallet cannot recognise its own CAT coins from
the frame that delivers them; the only local route is to derive the outer hash
cat_puzzle_hash(owner_p2, asset_id) and subscribe it. On a real wallet, 50 of the
51 puzzle hashes holding its coins were dropped at ingest for want of this.

Subscribing is discovery, not belief: apply_coin_states now ROUTES rather than
types, sending derived-hash arrivals to cat_admission_pending and leaving coins
with exactly origin/main's semantics. Zero chain reads on the frame path,
structurally -- the staging path takes no LineageSource.

SessionState keeps the address set and the derived set as separate fields so
record_arrivals cannot see an outer CAT hash.
…ame path

Promotion runs in the out-of-band pass, at the two sites that already hold a
LineageSource: CatAttributor::attribute and refresh_tracked_coins. Three
outcomes, and the third is deliberately not the second -- proven promotes,
disproven deletes terminally, unavailable leaves the row staged and retried.

CatAttributor::promote returns nothing and swallows every error: run_update_loop
calls attribute(db).await?, so a propagating chain-read failure would end a live
peer session, which is the denial primitive earlier rounds introduced twice.

Attribution is taken from the parent spend's own reconstruction, never from the
derivation that found the coin, and both halves -- asset id and inner p2 -- must
agree before a coin enters coins.
Fixtures built to distinguish the property from the nearest wrong implementation,
not merely to assert an outcome:

- the fabricated-coin test carries a REAL CAT beside the fake, so a filter placed
  at the wrong layer -- one refusing every derived-hash coin -- fails visibly
  instead of satisfying an empty-set assertion identically;
- the denial test fails ONE parent read and keeps a truthful control, so
  'handled the error' is distinguishable from 'did no work';
- the read-bound test CALIBRATES the counter to non-zero before believing any
  zero it reports, and pins the cap from both sides with one-over;
- incompleteness is asserted in both directions -- absent from its own asset's
  balance AND from the XCH balance and the spend selector;
- the derivation claim itself is asserted rather than assumed, so the rest cannot
  pass vacuously.
The routing test is the one that fails against origin/main's behaviour: a coin at
a derived CAT hash is dropped there and staged here. Paired with an ordinary p2
coin in the same batch, so an implementation admitting the CAT coin straight into
coins satisfies neither assertion, and with an unknown-hash control so staging is
shown to widen acceptance by exactly the derived set and nothing else.

The arrivals test pins the sync.rs:957 defect class as unreachable rather than
guarded: the address set and the derived set are separate fields, and only the
former is handed to the notifier.
…ved CAT hashes

The two supervisor tests correctly detected the behaviour change and are
tightened rather than widened: subscribed_for derives the expected extra hashes
from cat_puzzle_hash(address, DIG_ASSET_ID), so an implementation subscribing one
hash too many, or the wrong curry, fails as loudly as one subscribing too few.
… bar

#380 states its bar as a real wallet reporting its real $DIG figure, which a
green suite does not answer. Ignored by default and driven by DIG_REAL_WALLET
plus a captured chain snapshot, so the capture is auditable separately from the
code it exercises and the harness performs no network I/O of its own.

Measured against a copy of the live replica: 948 coins across ONE puzzle hash,
zero attributed, zero at the derived CAT hash -- the starvation. The chain holds
8 unspent coins at cat_puzzle_hash(that address, DIG_ASSET_ID) totalling
3,856,455, all 8 of which stage, promote and are counted.
Normative: derived-hash arrivals are staged, only lineage-proven coins enter
coins, the address set and the derived set stay distinct, promotion is terminal
and capped and never propagates into the update loop, the staging bound delays
rather than errors, and the stated failure mode is incompleteness.

Bumps dig-wallet 0.39.0 -> 0.40.0 and dig-node 0.160.0 -> 0.161.0 (minor: new
capability, no removed API).
@MichaelTaylor3d

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loop-security — audit STARTED (IN PROGRESS — not the verdict)

Head audited: 44bacb6e7779b1f871db5d31f3dc59979cef7119
Merge base: e0940780da29da5f38ae45838118110d9d8b2159
Diff: 12 files, +1670/-22.

Working in my own worktree under C:\tmp\worktrees cut from origin/main; I will not touch dn390 or any shared checkout.

Attack surface I am working through, in order — each gets its own comment as it resolves:

  1. can anything fabricated reach coins
  2. reorg rollback atomicity of cat_admission_pending
  3. staging table as a new attacker-writable, unbounded surface
  4. CatAttributor::promote error swallowing — denial vs. permanent silence
  5. re-derive the puzzle-hash set list from scratch
  6. re-execute the two load-bearing reverts + the read-bound calibration
  7. SPEC §18.11a claim-by-claim against this diff
  8. merge preconditions by name, threads, authorship

@MichaelTaylor3d

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FINDING 1 — CRITICAL, LIVE. A fabricated coin DOES reach coins, as XCH, on the catch-up path

IN PROGRESS — not the verdict. Head audited: 44bacb6e7779b1f871db5d31f3dc59979cef7119.

The central thesis — "only lineage-proven coins are written to coins"does not hold on the
catch-up path
. I reproduced it. This is the round-5 defect the PR exists to make structurally
unreachable, reintroduced through the subscription argument.

The seam

sync_supervisor.rs:1381-1386 builds the catch-up request as addresses union derived CAT hashes:

let mut requested = puzzle_hashes.clone();
requested.extend(derived.hashes());
requested.sort();
requested.dedup();
let catch_up = ... session.catch_up(&self.db, requested, ..., &derived)

initial_sync_with_authority then rebuilds its own admission set from that widened vector —
sync.rs:1047:

let subscribed: SubscribedHashes = puzzle_hashes.iter().copied().collect();

So inside the catch-up, subscribed contains the derived CAT outer hashes. apply_coin_states
admits on subscribed.contains(..) || (derived && promoted) (sync.rs:764-767) — and the FIRST
disjunct is now true for every derived-hash coin. The coin is mapped through coin_state_to_row,
which hardcodes asset_id: None (sync.rs:448), and asset_id IS NULL means XCH.

The supervisor's own subscribed (line 1341) is correctly addresses-only, so the live-push path
handle_coin_state_update is clean. The defect is specific to the catch-up, which runs on every
initial sync and every re-sync.

Reproduced

Probe added in my own worktree C:\tmp\worktrees\sec393 (cut from the PR head; no shared checkout
touched), driving initial_sync_with_authority with exactly the vector the supervisor builds, and
one coin any stranger can make — parent 0xAB..AB, puzzle hash = the victim's derived CAT hash:

AUDIT PROBE: coins rows = 1
AUDIT PROBE: coin 0dffabeb228825877d216c6af5065277d32ef7e96b551c6637ab811fd7ab6ca7 amount 999999999 asset_id None
AUDIT PROBE: XCH balance = 999999999
AUDIT PROBE: staged rows = 1
AUDIT PROBE: unspent selectable (XCH) = 1

panicked: a fabricated coin at a derived CAT hash must NOT be counted as XCH
  left: 999999999   right: 0

Note staged rows = 1 beside coins rows = 1: the coin is written to both tables. Promotion
later disproves it and calls discard_cat_admission, which deletes only the staged row — the
fabricated row in coins is never removed by anything. The refusal does not clean up.

Exploit

State: victim runs a dig-node wallet; attacker knows only the victim's public address (it is public).
Action: attacker computes cat_puzzle_hash(victim_p2, DIG_ASSET_ID) and CREATE_COINs one coin at
that hash for N mojos. Impact, on the victim's next catch-up:

  1. Fabricated XCH balance of N — a money lie on every XCH surface, not merely incompleteness.
  2. Permanent send kill-switch. The row is in unspent_coins(None), so the XCH spend-input
    selector selects it. It is unspendable by anyone (its inner puzzle is the CAT2 wrapper), and
    selection is largest-first, so a single large fabricated coin is chosen forever and every XCH
    send fails. Cost to the attacker: 1 mojo per displayed mojo, one CREATE_COIN, no peer, no
    key, no relationship to the victim.
  3. It is never removeddiscard_cat_admission deletes the staging row, not the coins row.

This is the same class as dig-node#394 but introduced by this PR: before it, no derived hash was
ever in puzzle_hashes, so no such coin could be requested or admitted.

The shape of the fix (not a patch — the lane owns that)

initial_sync_with_authority must not conflate what is requested from the peer with what may be
admitted to coins
. The Subscription { addresses, derived } type its own comment at
sync.rs:1005-1010 says is "the right shape" and defers is precisely the thing whose absence causes
this. Any fix must keep both properties provable: the derived hashes are still REQUESTED (or #380
regresses), and are still not ADMITTED.

A test that would have caught it: every existing catch-up test passes &DerivedCats::default(),
so the widened-subscribed path is exercised by no test in this diff. a_derived_cat_hash_coin_is_staged_while_a_p2_coin_is_admitted
(sync.rs:1306) calls apply_coin_states directly with a hand-built addresses-only subscribed, so
it asserts the property the production catch-up caller does not satisfy.

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FINDING 2 — CRITICAL, LIVE. 64 mojos buys a permanent $DIG starvation and unbounded chain-read amplification

IN PROGRESS — not the verdict. Head 44bacb6e7779b1f871db5d31f3dc59979cef7119.

The "terminal, ~1x amplification" property (cat_discovery.rs:51-59) does not hold, because the
production LineageSource cannot distinguish "this parent does not exist" from "I could not read
it"
.

The seam

fallback.rs:517-520, the only production LineageSource:

Ok(cs) => cs,
// The parent spend is not available (unspent / not found) — a clean "no lineage".
Err(_) => return Ok(None),

Every failure — including a parent_coin_info naming a coin that never existed — becomes
Ok(None). promote_staged_cats classifies Ok(None) as UNAVAILABLE (cat_discovery.rs:221-226):
deferred += 1; continue; — the row stays staged and is re-read on every future pass.

An attacker's parent_coin_info is 32 arbitrary bytes of their choosing. So a fabricated coin is
never refusable. discard_cat_admission is unreachable for it.

Two consequences compound, because the queue is FIFO — staged_cat_admissions is
ORDER BY seq ASC LIMIT 64 (db.rs:1712) and the pass cap is 64 (cat_discovery.rs:60):

(a) Permanent head-of-line starvation. 64 never-refusable rows at the head of the queue are
returned by every pass forever. Nothing behind them is ever read.

(b) Unbounded read amplification. 64 chain reads per pass, forever, from a one-time spend.
Not N total as the doc claims — N per pass, without limit.

Reproduced

Probe in my own worktree C:\tmp\worktrees\sec393. The lineage source knows the genuine parent
perfectly well; the only thing it cannot answer is the attacker's invented parents, returning
Ok(None) exactly as production does:

AUDIT PROBE 2: pass 1: PromoteStats { promoted: 0, refused: 0, deferred: 64 } total_reads=64 staged=65
AUDIT PROBE 2: pass 2: PromoteStats { promoted: 0, refused: 0, deferred: 64 } total_reads=128 staged=65
...
AUDIT PROBE 2: pass 10: PromoteStats { promoted: 0, refused: 0, deferred: 64 } total_reads=640 staged=65
AUDIT PROBE 2: dig balance after 10 passes = 0

panicked: the victim's genuine CAT coin must eventually be promoted
  left: 0   right: 1000

staged=65 never moves. promoted=0 forever. The victim's real $DIG coin sits at seq 65 and is
never reached.

Exploit

State: victim runs dig-node; attacker knows the victim's public address only.
Action: one spend creating 64 coins of 1 mojo each at cat_puzzle_hash(victim_p2, DIG_ASSET_ID),
each with a parent_coin_info of 32 random bytes.
Impact:

  • The victim's $DIG balance is permanently 0 — the exact starvation dig-node drops every CAT coin at ingestion, so $DIG balance reads a confident zero on a funded wallet #380 exists to fix, now
    attacker-inducible and harder to escape than the bug being fixed (a re-sync re-stages the
    attacker's coins too, so it does not recover).
  • ~64 coinset/chia_query reads per promotion pass, forever, for a one-time cost of 64 mojos.
    This is a sustained outbound-read amplification against a third-party service, keyed on nothing
    but the victim's public address.

The lane saw the mechanism and downgraded the assertion instead of filing it

cat_discovery.rs:690-692, inside promotion_reads_are_bounded_and_never_repeated:

// Every one of them was refused (their parents are unknown to the map -> but the map
// returns None, which is UNAVAILABLE, so they stay staged and ARE re-read). Assert the
// honest thing instead: the pass is capped and the already-PROMOTED coin is never re-read.

That comment states this finding exactly. The test was then weakened to assert only the per-pass cap
— which is true and is not the property the doc claims. The test named "…and never repeated" does
not test that reads are never repeated
, and the module doc's amplification argument
(cat_discovery.rs:51-59) is false as written.

Shape of a fix (the lane owns the design)

The classification, the ordering, and the doc are three separate problems and all three are load-bearing:

  • Classification. Ok(None) conflates "no such coin" with "cannot read". Coinset can answer
    the first definitively; fallback.rs currently discards that distinction with Err(_) =>.
  • Ordering/fairness. Even with perfect classification, a strict FIFO head means any class of
    永-deferrable row starves the tail. An attempt counter with backoff, or a bounded retry budget per
    row, makes the queue drain.
  • Doc/SPEC. The amplification claim and SPEC §18.11a's terminality claim must match whatever
    lands (see Finding 5).

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FINDING 3 — HIGH. The primary promotion site is DEAD in production; the one live site is silent

IN PROGRESS — not the verdict. Head 44bacb6e7779b1f871db5d31f3dc59979cef7119.

Brief item 4 asked whether CatAttributor::promote's error swallowing can hide a real failure into
permanent silence. It can — but the more consequential fact is where promotion runs at all.

CatAttributor::promote never executes in production

  • CatAttributor is constructed in exactly one place: sync.rs:2633, which is inside
    #[cfg(test)] mod tests (the module opens at sync.rs:1214-1215).
  • attribute(db).await? is reached only from sync.rs:1153, guarded by if let Some(a) = attributor.
  • The production SyncSession::runsync_supervisor.rs:2361 — passes None:
    sync::run_update_loop(db, receiver, events, None, session).await.

So the elaborate rationale at sync.rs:812-825"run_update_loop calls attribute(db).await? on
the peer frame path, so any error this pass could produce would … END A LIVE SESSION"
— describes a
call that does not occur on any production path. The stated denial primitive it defends against is
not reachable, and neither is the defence.

(The None at sync_supervisor.rs:2361 is pre-existing origin/main behaviour, not introduced here.
It is load-bearing for this PR because this PR's central claims rest on that call site.)

The one live promotion site logs nothing

rpc.rs:3118, inside refresh_tracked_coins:

let _ = super::cat_discovery::promote_staged_cats(&self.db, lineage).await;

Result discarded, no tracing::warn!, no counter, nothing. promote_staged_cats also returns
PromoteStats — promoted/refused/deferred — which is thrown away here. So on the only path that
runs, a promotion failure and a promotion that did nothing are indistinguishable, and both are
invisible. "Never denies" is achieved; so is "never reports", and only the first was wanted.

The tracing::info!/tracing::warn! in CatAttributor::promote (sync.rs:830-846) — the code that
does report — is on the dead path.

And refresh_tracked_coins has exactly one production caller: a tip spend

grepping every invocation across the repo at this head:

  • tipping.rs:1085NodeTipSpender::send_dig_tip, best-effort pre-spend refresh.
  • everything else is #[cfg(test)].

Nothing outside crates/dig-wallet calls it at all (git grep refresh_tracked_coins 44bacb6e -- ':!crates/dig-wallet' returns only SPEC.md and DEVELOPMENT_LOG.md prose). DEVELOPMENT_LOG.md:100
says so in as many words: "refresh_tracked_coins' hinted coinset read, which is not a background
loop
"
.

Consequence: on the shipped node, a staged CAT coin is promoted only in the moments immediately
before the node sends a $DIG tip.
There is no background promotion pass, no timer, and no promotion
on the peer sync path. Until a tip is attempted, get_balance/get_cats report the staged coin as
absent — which is #380's original symptom.

Bearing on Closes #380

#380's acceptance bar, quoted by the lane itself, is a real wallet reporting its real $DIG figure.
The measurement that evidences it (tests/real_wallet_cat_discovery.rs) drives
promote_staged_cats directly. The harness proves the algorithm; it does not prove the wiring.
On the shipped node the algorithm is only invoked from a tip spend, so a user who never tips never
sees their $DIG figure change — the ingestion drop is fixed at the ingest layer and left unfixed at
the surface #380 measures.

Severity HIGH rather than gating-on-its-own: it is not an attacker primitive, but Closes #380
asserts an end-to-end outcome the diff does not deliver, and per §2.6 the deliverable is a person
watching it work, not a green suite.

Cheap remedies the lane may prefer

  • Log at rpc.rs:3118 rather than let _ = — the PromoteStats is already computed.
  • Either wire a production CatAttributor (which makes the swallowing rationale true), or delete the
    dead rationale and say plainly where promotion runs.

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EVIDENCE VERIFICATION — the lane's instrument discipline holds up

IN PROGRESS — not the verdict. Head 44bacb6e7779b1f871db5d31f3dc59979cef7119. All of the
below re-executed by me in my own worktree C:\tmp\worktrees\sec393; no shared checkout touched.

1. The load-bearing revert reproduces EXACTLY as claimed

Mutated promote_one (cat_discovery.rs:273) to believe the derivation instead of the parent
spend — promote straight from row.derived_asset_id / row.derived_owner_p2:

thread 'sage::cat_discovery::tests::a_fabricated_coin_is_refused_while_a_real_one_is_promoted' panicked:
assertion `left == right` failed: PromoteStats { promoted: 2, refused: 0, deferred: 0 }
  left: 2   right: 1

promoted: 2, refused: 0 — exactly the claim. The test genuinely discriminates the fabricated-coin
class, and the real-CAT control beside the fake means a wrong-layer filter would fail visibly too.
File restored afterwards; grep -c "AUDIT MUTATION" = 0.

2. The real-wallet measurement reproduces independently

I did not reuse w390.sqlite (already mutated by the lane's own run). I took a fresh copy of the
live replica — wallet.sqlite plus -wal and -shm, without which the copy reads stale — and
ran against the committed harness with the lane's captures:

[REPLICA] coins=948 distinct_puzzle_hashes=1 attributed=0
[DERIVED] dig_asset_id=a406d3a9de984d03c9591c10d917593b434d5263cabe2b42f6b367df16832f81
[DERIVED] a $DIG coin of this wallet sits at 6ce1cdf86cb39059eb43e3c4c0e7c62fdf7d099fdb71033563cc4b9daeab376d
[REPLICA] rows already at a derived CAT hash = 0
[BEFORE] dig_balance=0
[CHAIN] coins captured at the derived hash = 8
[STAGE] staged = 8
[PROMOTE] PromoteStats { promoted: 8, refused: 0, deferred: 0 }
[AFTER] dig_balance=3856455
[AFTER] xch_balance=1599179999972

Every figure matches what was reported: 948/1/0, promoted: 8, refused: 0, deferred: 0,
3,856,455, XCH unchanged at 1,599,179,999,972. The evidence is honest.

One caveat, stated so nobody over-reads it: the_real_wallet_reports_its_real_dig_balance contains
no assertions — it only prints. That is fine for a measurement harness and it is labelled as one,
but "refused: 0" is an observed number, not an enforced property. And see Finding 3: this harness
drives promote_staged_cats directly, so it measures the algorithm, not the shipped wiring.

3. The read-bound calibration is real, not decorative

promotion_reads_are_bounded_and_never_repeated asserts lineage.reads() == 1 before believing
any later bound. Independently corroborated: my own probe drove the same counter through the same
path and watched it move 64 → 128 → … → 640 across ten passes. A detached counter could not have
produced that. The calibration does what it says.

4. Reorg rollback atomicity is real

db.rs:1829-1896: one self.pool.begin() at 1831, one tx.commit() at 1895, and all five
statements execute on &mut *tx — including the staged DELETE (1857-1863) and the staged spend-clear
(1868-1875). No partial rollback is possible.

The staged predicate is byte-identical to the coins predicate — created_height IS NOT NULL AND created_height > ? — so staged rows cannot survive a fork their coins did not. The spend-clear
mirrors the coins spend-clear. The paired test asserts both directions (above the fork goes, at
or below stays), so an implementation that emptied the whole table fails.

Residual, non-gating: a staged row with created_height IS NULL survives any rollback, because both
predicates exclude NULL. It is harmless todaypromote_staged_cats defers such a row without a
read (cat_discovery.rs:211-215) — but it is a permanent resident of the queue head, which is one of
the ingredients of Finding 2.

5. The sibling — a staged coin later spent

cat_discovery.rs:206-210 discards a staged row with spent_height set, without a read, and
stage_cat_admissions' ON CONFLICT updates spent_height on re-push (db.rs:1680-1684). So a
spent staged coin does drain rather than accumulate. Confirmed by reading; nothing accumulates via
that route.

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FINDING 4 — GATING. SPEC §18.11a is BORN FALSE in the diff that writes it (four clauses)

IN PROGRESS — not the verdict. Head 44bacb6e7779b1f871db5d31f3dc59979cef7119.

Checked clause by clause against this same diff, per the born-false rule. §18.11a is at SPEC.md:5408-5455.

clause verdict
derives cat_puzzle_hash(owner_p2, asset_id) and subscribes them alongside addresses TRUEsync_supervisor.rs:1381-1386
"A coin arriving at a derived hash MUST be written to cat_admission_pending, never to coins" FALSE — on the catch-up path it is written to BOTH (Finding 1)
"A coin MUST enter coins only when a read of its parent spend reconstructs it…" FALSE — Finding 1; no parent read occurs on the catch-up admission
"coins MUST retain exactly the semantics it has without this feature" FALSEcoins now accepts derived-hash coins it previously dropped (Finding 1)
"The address set and the derived set MUST remain distinct. Only the address set is presented to the arrivals notifier" TRUE for the notifier — session.subscribed is addresses-only (sync_supervisor.rs:1341), record_arrivals(&watched, …) at sync.rs:946, and arrivals::classify (arrivals.rs:155-167) returns Deferred, not Arrival, for an unattributed coin at an unwatched hash. Partially violated in the persisted record: complete_catch_up stores the widened union into covered_puzzle_hashes (sync.rs:1112, db.rs:1381)
"The frame path performs zero chain reads" TRUE as written (chain reads). Note it now performs N database round trips — existing_coin_ids is a per-coin SELECT loop, db.rs:1723-1736
"Promotion performs at most one parent-spend read per staged coin and is terminal" FALSE — Finding 2: a coin whose parent is unreadable is re-read every pass, without limit
"A promotion failure MUST NOT propagate into the peer update loop" VACUOUSLY TRUE — the loop never calls it (Finding 3)
"cat_admission_pending MUST be bounded, evicting oldest-first… MUST delay and MUST NOT error" TRUEdb.rs:1687-1693, test-pinned both sides
"Staged rows are rolled back with the coins they describe" TRUEdb.rs:1857-1875, same transaction, identical predicate
"not counted as its asset, and in particular not counted as XCH" FALSE — Finding 1 measured XCH balance = 999999999 from a fabricated coin

Four normative MUSTs are false of the code in the same diff, and one more is vacuous. Three of the
four are the same root cause (Finding 1), so a fix there repairs them together — but the SPEC text
must be re-verified against whatever lands, not assumed to follow.

Also worth naming: the covered_puzzle_hashes column now persists a set of addresses ∪ derived CAT
hashes
under a name every other reader treats as addresses. CoveredSet::covers is containment
and followed_puzzle_hashes (sync_supervisor.rs:697-711) is addresses-only, so this is inert
today
— I verified that, and the "widening is safe" claim holds. But this is the ninth
puzzle-hash-shaped set in a family whose enumeration has already been found incomplete twice, and it
is now a persisted one. Defense-in-depth, not gating: name it in §18.11a or narrow what is stored.


FINDING 5 — MEDIUM (defense-in-depth). Promotion races the reorg rollback it depends on

promote_cat_admission (db.rs:1755-1794) writes into coins without re-checking that the staged
row still exists
:

let mut tx = self.pool.begin().await?;
sqlx::query("INSERT INTO coins … ON CONFLICT(coin_id) DO UPDATE …")  // writes unconditionally
…
sqlx::query("DELETE FROM cat_admission_pending WHERE coin_id = ?")

The staged row is read at cat_discovery.rs:197, then a network round trip happens
(lineage.parent_spend(...), line 216), then the promotion is applied. rollback_above runs on a
different task (the peer sync loop, via handle_coin_state_update) and can delete that staged row
inside that window. The in-flight promotion holds the row in memory and writes it anyway.

That is exactly the outcome commit b4e612c says it prevents — "a staged row … can later be
promoted against a fork that no longer exists"
. The rollback closes the persisted route and leaves
the in-flight one open.

Not gating on its own: it needs a reorg concurrent with a promotion pass, and the promoted coin is
still lineage-proven (its parent spend really did create it), so the damage is a $DIG balance
inflated by an orphaned coin plus a spend selection that fails — under-collateralised, not forged.
But the whole design rests on staged rows being unmakeable, and this is the one path where they are not.

Cheap fix: do the DELETE first, check rows_affected() == 1, and abandon the transaction
otherwise — the delete then acts as the compare-and-swap the promotion needs.


The out-of-scope item is accurately stated, and this PR does not worsen it

dig-node#394 (refresh_tracked_coins, rpc.rs:3105-3106upsert_coins): coin_records_by_hints
results go through fallback_coin_to_row, which hardcodes asset_id: None (rpc.rs:4736). So a
coin merely hinted to the owner p2 lands in coins as XCH and reaches the spend selector, on
origin/main, with no peer involved. The PR body states this correctly.

This PR does not make it worse: phs is still signer.puzzle_hashes() (rpc.rs:3099), unwidened;
the only addition to that function is a promote_staged_cats call, which if anything repairs
attribution on a hint-upserted row via promote_cat_admission's COALESCE. Confirmed, and this PR
does not close it.

@MichaelTaylor3d

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loop-security VERDICT: CHANGES-REQUIRED

Head audited: 44bacb6e7779b1f871db5d31f3dc59979cef7119 (resolved from
gh pr view 393 --json headRefOid; merge base e0940780da29da5f38ae45838118110d9d8b2159).
Worktree C:\tmp\worktrees\sec393, cut from the head. No shared checkout touched, dn390 untouched.

The central thesis — only lineage-proven coins are written to coinsis false on the catch-up
path
, and I reproduced both a fabricated-balance primitive and a permanent-denial primitive against
this head. Do not merge.

GATING (ranked)

1. CRITICAL — a fabricated coin reaches coins as XCH on the catch-up path.
sync_supervisor.rs:1381-1386 passes addresses union derived CAT hashes as one vector;
sync.rs:1047 rebuilds the admission set from it; sync.rs:765 therefore admits every derived-hash
coin; sync.rs:448 types it asset_id: None = XCH. Reproduced: XCH balance = 999999999,
unspent selectable (XCH) = 1, coin in coins and in staging. Exploit: one CREATE_COIN at
cat_puzzle_hash(victim_p2, DIG_ASSET_ID) — public address only, no peer, no key — buys a fabricated
XCH balance and, because selection is largest-first and the coin is unspendable by anyone, a
permanent XCH send kill-switch. discard_cat_admission deletes only the staging row, so nothing
ever removes it, and the catch-up re-runs on every reconnect. Full detail plus probe output:
#393 (comment)

2. CRITICAL — 64 mojos buys permanent $DIG starvation plus unbounded read amplification.
fallback.rs:519 maps every parent-read failure, including a parent that never existed, to
Ok(None); cat_discovery.rs:221-226 treats that as UNAVAILABLE and re-reads forever;
db.rs:1712 serves the queue ORDER BY seq ASC LIMIT 64. So 64 coins with invented parents hold the
queue head permanently. Reproduced: ten passes, deferred: 64 every pass, total_reads 64 to 640 and
climbing, staged stuck at 65, victim $DIG balance 0 forever. The lane saw the mechanism
(cat_discovery.rs:690-692) and weakened the assertion instead of filing it — the test named
"and never repeated" does not test that. Detail:
#393 (comment)

3. GATING — SPEC 18.11a is born false in four normative MUSTs. "never to coins",
"only when a read of its parent spend reconstructs it", "coins MUST retain exactly the semantics
it has without this feature", and "in particular not counted as XCH" are all falsified by (1);
"at most one parent-spend read per staged coin and is terminal" is falsified by (2). A fifth is
vacuous (see 4). Clause table:
#393 (comment)

4. HIGH — the promotion path is dead in production and the live one is silent. CatAttributor
is constructed only at sync.rs:2633, inside #[cfg(test)]; production run_update_loop passes
None (sync_supervisor.rs:2361). So CatAttributor::promote — and its entire error-swallowing
rationale — never runs. The only live promotion is rpc.rs:3118, let _ = ..., which logs nothing
and discards PromoteStats; its only production caller is NodeTipSpender::send_dig_tip
(tipping.rs:1085), and DEVELOPMENT_LOG.md:100 confirms it "is not a background loop". So on the
shipped node a staged coin promotes only just before a $DIG tip. Closes #380 asserts an end-to-end
outcome — a real wallet reporting its real $DIG figure — that the wiring does not deliver; the
harness proves the algorithm, not the wiring. Detail:
#393 (comment)

NON-GATING (follow-up tickets, do not hold the PR on these)

5. MEDIUM — promotion races the reorg rollback. promote_cat_admission (db.rs:1755-1794)
writes into coins without re-checking the staged row still exists, across a network round trip that
rollback_above can delete it inside. Fix: DELETE first, gate on rows_affected() == 1.

6. LOW — covered_puzzle_hashes now persists addresses union derived hashes (sync.rs:1112).
Inert today (followed_puzzle_hashes is addresses-only, covers is containment — I verified both),
but it is a ninth puzzle-hash-shaped set in a family whose enumeration has been wrong twice.

7. LOW — existing_coin_ids is a per-coin SELECT loop on the frame path (db.rs:1723-1736),
one DB round trip per derived-hash coin in a peer-chosen batch. Not a chain read; the SPEC claim
survives. One IN (...) query would remove it.

What I verified as CLEAR

  • Reorg rollback atomicity is real. db.rs:1829-1896: one transaction, all five statements on
    &mut *tx, staged predicate byte-identical to the coins predicate, spend-clear mirrored, both
    directions test-pinned. Residual: created_height IS NULL rows survive any rollback (an ingredient
    of finding 2, not a defect on its own).
  • Nothing accumulates in staging via the spend route. cat_discovery.rs:206-210 discards a spent
    staged row without a read; ON CONFLICT refreshes spent_height on re-push (db.rs:1680-1684).
  • The staging bound evicts, never errors. db.rs:1687-1693, oldest-first, pinned from both sides.
  • The arrivals notifier cannot see a derived hash. session.subscribed is addresses-only
    (sync_supervisor.rs:1341); arrivals::classify returns Deferred, not Arrival, for an
    unattributed coin at an unwatched hash (arrivals.rs:155-167). The sync.rs:957 false-payment
    class is genuinely unreachable. This survives finding 1 — I checked it specifically.
  • The puzzle-hash set list, re-derived from scratch rather than trusted. PuzzleHashSource,
    followed_puzzle_hashes (sync_supervisor.rs:697), set_watched (:1361), the record_arrivals
    watched set, the refresh_tracked_coins phs (rpc.rs:3099), CatAttributor::plain_puzzle_hashes
    — all still addresses. The two that changed are the catch-up puzzle_hashes (finding 1) and
    covered_puzzle_hashes (finding 6).
  • A coin id cannot hijack an existing coins row. promote_one re-derives the coin id from the
    row own fields before trusting it (cat_discovery.rs:266), and the promotion ON CONFLICT
    updates only heights, timestamps and attribution — never parent, puzzle hash or amount.
  • Both claimed reverts and the real-wallet measurement reproduce. promoted: 2, refused: 0 under
    the mutated promote_one; and on my own fresh copy of the live replica (-wal and -shm
    included) 948/1/0 then promoted: 8, refused: 0, deferred: 0 then dig_balance=3856455, XCH
    unchanged at 1599179999972. The read-bound calibration is real, not decorative — my own probe
    drove the same counter 64 to 640 through the same path. Detail:
    feat(wallet): stage derived-hash CAT arrivals, promote only lineage-proven coins #393 (comment)
  • Secrets, custody, dependencies. No key, token or credential added, logged or committed. 908
    holds — nothing signs. No new endpoint or RPC. No dependency added or loosened; the chia-0.36 hold
    is explained and correct (chia-wallet-sdk 0.36.0 is the published tip).
  • Merge preconditions, by name. check-merge-preconditions.sh gives all five required contexts
    present and SUCCESS (Lint commit messages, Check version increment, Rustfmt, Clippy,
    Test + coverage), unresolvedReviewThreads=0, mergeStateStatus=CLEAN, BLOCKED on draft=true
    alone
    — exactly as briefed.
  • Authorship and history. All twelve commits authored and committed by
    Michael Taylor <michael@michaeltaylor.dev> — the one correct identity, no fabrication. Signatures
    verified: true, reason: valid (head and salvage commit both checked). The salvage commit
    fe3b3b5 carries the Claude co-author trailer correctly, and its "INCOMPLETE / reorg not done"
    note is superseded by b4e612c two commits later — I verified the reorg code exists and is
    atomic. The note lives only in an intermediate commit message that a squash-merge discards, and it
    does not appear in the PR body. Closes #380. is present, unbackticked, on its own line.

Coverage I did NOT achieve — judged honestly

  • I did not run the full dig-wallet suite; I ran the named tests plus my two probes. The lane
    "679 passed" figure is unverified by me.
  • I did not exercise a live peer session end to end. Finding 1 is proven through
    initial_sync_with_authority with the exact vector sync_supervisor.rs:1381-1386 constructs —
    strong, but one seam short of a live socket.
  • Finding 5 (the promotion/rollback race) is proven by reading, not by a forced interleaving.
  • gitnexus has no index for this worktree; blast radius was git grep plus reading, per 2.0 bound 2.

Re-gate scope

Findings 1-3 are one root cause plus its SPEC text; finding 4 is wiring. A fix touching the
subscription split and the deferral classification changes what enters the money table, so the
security leg must re-run in full on the new head — not a scoped re-check. Findings 5-7 are
follow-up tickets and must not hold this PR.

MichaelTaylor3d and others added 5 commits August 28, 2026 02:47
A catch-up needs coverage over addresses AND derived CAT hashes, and admission
over addresses only. `sync_supervisor.rs` built the union at the call site and
handed it down as one vector; `initial_sync_with_authority` then built the
`coins` admission set from that widened vector, so every coin at a derived CAT
hash was admitted and typed `asset_id: None` -- which means XCH.

One `CREATE_COIN` at `cat_puzzle_hash(victim_p2, DIG_ASSET_ID)`, costing one
mojo per displayed base unit and needing only the victim's public address, then
bought a fabricated XCH balance and a permanent send kill-switch: selection is
largest-first and the coin is unspendable by anyone.

The union now happens inside `initial_sync_with_authority` and reaches only the
peer request. The admission set is built from `addresses` with derived hashes
actively FILTERED OUT, so a caller cannot widen admission even by passing one.
`covered_puzzle_hashes` returns to addresses-only for the same reason.

Refs dig-node#394.

Co-Authored-By: Claude <noreply@anthropic.com>
Two regression tests for the fabricated-XCH primitive.

The first drives the real catch-up with a NON-default `DerivedCats` -- every
pre-existing catch-up test passed `DerivedCats::default()`, and a field every
fixture sets to the same value is a field the suite cannot test. It asserts
BOTH halves: the peer is still asked about the derived hash (coverage), and the
coin at it is staged rather than admitted (admission). Asserting only the second
is satisfied identically by a catch-up that never subscribed the hash at all,
which is #380's starvation wearing this defect's assertion.

The second hands a derived hash in the ADDRESS vector -- the misbehaving caller
-- and pins that admission still refuses it. That is what makes the guarantee
structural rather than a convention a future caller has to remember.

Refs dig-node#394.

Co-Authored-By: Claude <noreply@anthropic.com>
… starving

64 mojos bought permanent $DIG starvation. A promotion that cannot read its
parent leaves the row staged -- deliberately, because deleting on an unreadable
parent lets a source that is merely behind erase real money -- and the queue was
served `ORDER BY seq ASC LIMIT 64`. So 64 coins with invented parents held the
head for ever: every pass re-read the same 64 rows, reads climbed without bound,
and no honest coin behind them was ever reached.

The queue is now ordered `attempts ASC, seq ASC`, so a row that keeps failing
sinks below every row that has never been tried and cannot hold the head. On top
of that a row is eligible only if it has not been read within
`PROMOTION_RETRY_COOLDOWN`, which bounds an attacker to `rows / cooldown` reads
rather than `limit` reads per pass. No row is ever deleted for failing: absence
is the accepted failure direction, erasing a real coin is not.

A terminal refusal keyed on "the parent never existed" was considered and
rejected: a coinset source answers a null `coin_solution` both for a spend it has
never heard of and for one it is behind on, so that classification would convert
a brief outage into permanent erasure. The cost is bounded instead of the cause
classified; the reasoning is recorded on the constant.

`ChiaQueryLineage::parent_spend` also stops manufacturing `Ok(None)` -- the value
callers read as "the chain has no such spend" -- out of every transport failure.
`reconstruct_all` keeps its per-coin resilience explicitly so one flaky read
cannot abandon a whole attribution pass.

Also corrects `MAX_CAT_PROMOTIONS_PER_PASS`'s doc, which claimed promotion was
terminal and the total amplification therefore 1x. That is true of a promotion
that concludes and false of the deferral an attacker chooses.

Refs dig-node#394.

Co-Authored-By: Claude <noreply@anthropic.com>
…ening the claim

Three changes, all to the same property.

`promotion_reads_are_bounded_and_never_repeated` now asserts the thing its name
promises. It previously settled for `second <= cap` with a comment conceding
that deferred rows "ARE re-read" -- an assertion the defect satisfies, on a test
named for the property the defect breaks. The correct number is one: after a
pass one row past the cap has never been read, and the 64 already tried are
inside their cooldown. Zero would be wrong too, and for the opposite reason.

`a_wall_of_unresolvable_coins_cannot_starve_an_honest_one` stages exactly one
pass's worth of coins with invented parents and one real simulator-built CAT
behind them. A fixture where every staged coin is unresolvable cannot see this
defect at all -- a starved queue and a healthy one emit the same output when
nothing could promote -- so the honest control is what makes them differ. It is
false for any number of passes under the old ordering.

`the_queue_serves_fewest_attempts_first_and_honours_the_cooldown` asserts the
mechanism directly, with time PINNED to an explicit NOW rather than drawn from
the clock, and pins the cutoff from both sides: one second past it is served,
exactly at it is served, inside it is not.

Refs dig-node#394.

Co-Authored-By: Claude <noreply@anthropic.com>
… of believing

`refresh_tracked_coins` fetched coins two ways -- by puzzle hash, which finds
coins at the wallet's own p2 hashes, and by HINT, which finds coins that merely
claim to be for this wallet -- and upserted both straight into `coins`. A row
with no `asset_id` means XCH in this schema, and anyone may `CREATE_COIN` with
any hint, so an attacker holding only the victim's public address minted a
fabricated XCH balance for one mojo per displayed base unit, plus a permanent
send kill-switch: selection is largest-first and nobody can spend the coin. This
tier needs no peer at all -- the coinset oracle serves it -- and it is live on
`main` today.

The third tier is routed through the SAME staging table as the peer frame path
rather than given a guard of its own. Three guards that must agree is precisely
what produced this defect at three tiers; one admission point that demands a
lineage proof is the shape that cannot be widened.

Coins at the wallet's own p2 hashes are unaffected: they are genuinely ours and
genuinely XCH. A hinted coin at a derived hash for a known asset is staged and
promotes on proof. A hinted coin that is neither is now dropped rather than
believed -- it could never be selected as an XCH input and carries no asset id,
so admitting it only ever produced a wrong figure, and absence is this design's
accepted failure direction.

Closes dig-node#394.

Co-Authored-By: Claude <noreply@anthropic.com>
MichaelTaylor3d and others added 2 commits August 28, 2026 03:41
…ping it

The first cut of the point-read re-route staged only coins sitting at a DERIVED
hash for a known asset, and dropped every other hinted coin. That closed the
fabricated-XCH hole but silently removed a shipped capability: the wallet's only
path to an arbitrary (non-$DIG) CAT is the hint read, and
`refresh_tracked_coins_feeds_cat_selection_and_build_sign` exercises exactly
that end to end. A narrowing that a green suite would have hidden, and did not.

So a hinted coin with no prediction is staged too, with an empty sentinel in
place of the derived pair, and promotion proves it from the parent spend alone:
the reconstruction must name this coin id, and its hint must be an address this
wallet controls. That is the same claim the derived path proves -- this coin is
a unit of asset A and only this wallet can spend it -- reached without a
prediction to check against. `promote_staged_cats` therefore takes the wallet's
own p2 hashes, so the unpredicted branch has something to check the hint against;
without it the hint would be attacker-controlled all the way into `coins`, which
is the defect rather than a smaller version of it.

The supervisor tests now assert coverage and admission SEPARATELY -- the set put
on the wire and the set that admits coins are different values, and asserting
only the union is what let them be conflated. `subscribed_for` is renamed
`requested_for` to say which one it describes.

Refs dig-node#394.

Co-Authored-By: Claude <noreply@anthropic.com>
Two regression tests for dig-node#394.

`a_hinted_coin_is_staged_while_a_coin_at_our_own_hash_is_admitted` drives the
real `refresh_tracked_coins` with an attacker's coin at the victim's derived
$DIG hash beside an honest coin at the victim's own p2 hash. The honest coin is
what makes it a PLACEMENT test: "the balance is short" is satisfied identically
by a correct re-route and by a refresh that fetched nothing, so the control must
still be admitted, still be selectable, and still be the whole balance. The
fabricated coin is asserted present in STAGING as well as absent from `coins`,
so the fix cannot be satisfied by dropping it on the floor either.

`an_unpredicted_hinted_coin_promotes_only_to_an_address_we_control` runs the
same coin, the same proof and the same lineage source twice, varying only the
set of addresses the wallet claims. A promotion path that ignored `owned_p2`
passes the first half and fails the second.

Refs dig-node#394.

Co-Authored-By: Claude <noreply@anthropic.com>
@MichaelTaylor3d

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loop-security round 7 — GATING FINDING, posted as formed (verdict still to follow)

Head 46fa77b969bba57b3ff4ec6a5536cde307fb5246.

FINDING 1 (GATING) — the narrowing silently DELETES the wallet's NFTs and DIDs

This is error 2's generalisation manifesting a second time, in the same function, and the lane's own standard for error 2 requires fixing it: a shipped capability whose only path is the hint read.

Mechanism. refresh_tracked_coins fetches by puzzle hash AND by hint (rpc.rs:3104-3105). An NFT or DID coin sits at a singleton puzzle hash — never at one of the wallet's own p2 hashes — and is hinted to the owner p2. So it takes the else branch of route_point_read_rows (cat_discovery.rs:218-236) and is staged. Promotion then reads its parent and reconstructs it — correctly — as Reconstructed::Nft, which is not Reconstructed::Cat, so promote_one's let ... else at cat_discovery.rs:421-430 returns Promotion::Disproven, and promote_staged_cats:355-358 calls discard_cat_admission — a terminal delete.

Empirically confirmed, not inferred. I minted a real NFT with the existing mint_did_and_nft() simulator fixture and pushed its child coin through the production routing in my own worktree:

SG7-NFT routed: believed=0 staged=1
SG7-NFT promote stats=PromoteStats { promoted: 0, refused: 1, deferred: 0 }
SG7-NFT staged_remaining=0 coins=0 nfts=0

Reconstructed::Did takes the identical arm, so DIDs are lost the same way.

This removes the ONLY production path that populates nfts/dids. upsert_nft/upsert_did are called from exactly one production site, singleton.rs:412,416 inside reconstruct_coins; reconstruct_all has two production callers, rpc.rs:3180 (this tier) and sync.rs:812 (inside CatAttributor, which is constructed only under cfg(test)sync.rs:2858 — so it does not run). reconstruct_all iterates db.all_coins(), and these coins now never reach coins. Before this PR they did: origin/main's refresh_tracked_coins upserted every fetched row unconditionally.

Why no test caught it. reconstruct_coins_populates_db_and_get_reads (singleton.rs:655) does cover NFT/DID reconstruction — but it injects with db.upsert_coin(...) directly, one layer BELOW the narrowing. It therefore proves reconstruction works given coins in coins, and says nothing about whether anything still puts them there. That is the "test doubles wrong in one direction make a failure mode unreachable" shape. My probe B above corroborates it from the other side: reverting the routing entirely reddened only two tests, both CAT.

It is worse than one-shot loss. On the next refresh the NFT is fetched by hint again, is still absent from coins, is staged again, and is refused again. So it is a permanent, recurring one-chain-read-per-NFT-per-refresh cost that never terminates — the "terminal per verdict" property that bounds amplification does not hold for a coin the source keeps re-offering.

Suggested shape (not my call to implement): in promote_one, treat Reconstructed::Nft/Did as a distinct outcome from Disproven — the parent read PROVED the coin is a genuine singleton the wallet was hinted on, which is a promotion to coins on the same footing as the CAT case, not a disproof. The owner check has an analogue for both (the reconstructed NFT/DID row's own address). Whatever the shape, the acceptance bar is an end-to-end test that drives refresh_tracked_coins and asserts a non-empty nfts/dids table — precisely the kind of test whose absence let this through.

FINDING 2 (non-gating, doc) — route_point_read_rows's own doc contradicts its code

cat_discovery.rs:201-204 states: "A hinted coin that is not at a derived hash for a known asset is DROPPED rather than believed." The code at cat_discovery.rs:223-236 stages it, and the inline comment at 226-228 says the opposite in as many words: "Nothing is dropped." This is a surviving paragraph from the pre-error-2 version that genuinely did drop. It misdescribes the admission behaviour of the money path in the public doc of the module that owns that decision.

@MichaelTaylor3d

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loop-security round 7 — CHANGES-REQUIRED

Head audited: 46fa77b969bba57b3ff4ec6a5536cde307fb5246 (resolved myself via gh pr view 393 --json headRefOid; merge-base e0940780da29da5f38ae45838118110d9d8b2159 = current origin/main). Scope was FULL, per the round-6 handoff. All probes ran in my own detached worktree C:\tmp\worktrees\dn393-sg7; every mutation was reverted and the tree is clean at that same SHA. I touched no shared checkout and created no stash.

One GATING finding. It is not a re-statement of any earlier round: it is round 7's own self-caught error 2 recurring in the same function, against the lane's own stated standard.


GATING 1 — the point-read narrowing silently and permanently DELETES the wallet's NFTs and DIDs

cat_discovery.rs:218-236, cat_discovery.rs:421-430, cat_discovery.rs:355-358, rpc.rs:3104-3105, rpc.rs:3180.

State → action → impact. A user holds an NFT (or a DID profile). Its coin sits at a singleton puzzle hash — never at one of the wallet's own p2 hashes — and is hinted to the owner p2, which is how every Chia wallet discovers it. refresh_tracked_coins fetches it via coin_records_by_hints. route_point_read_rows sees a puzzle hash that is not owned and not derived, so it stages it. Promotion reads the parent, reconstructs it correctly as Reconstructed::Nft, which is not Reconstructed::Cat, so promote_one's let ... else returns Promotion::Disproven and the staged row is terminally deleted. The NFT never enters coins, and since reconstruct_all iterates db.all_coins(), it never becomes an nfts row.

Measured directly, with the repo's own mint_did_and_nft() simulator fixture pushed through the production routing:

SG7-NFT routed: believed=0 staged=1
SG7-NFT promote stats=PromoteStats { promoted: 0, refused: 1, deferred: 0 }
SG7-NFT staged_remaining=0 coins=0 nfts=0

Reconstructed::Did takes the identical arm.

This removes the ONLY production path that populates nfts/dids. upsert_nft/upsert_did have exactly one production call site (singleton.rs:412,416), reached only from reconstruct_all, whose two production callers are rpc.rs:3180 (this tier) and sync.rs:812 — the latter inside CatAttributor, constructed only under cfg(test) (sync.rs:2858), so it does not run. On origin/main these coins reached coins because refresh_tracked_coins upserted every fetched row unconditionally. The peer frame path never carried them on main either, so this tier was the whole capability.

Worse than one-shot loss. The coin is re-fetched by hint on every refresh, re-staged, and re-refused — a permanent recurring chain read per NFT per refresh. The "terminal per verdict" property that bounds promotion amplification does not hold for a coin the source keeps re-offering.

Why nothing caught it. reconstruct_coins_populates_db_and_get_reads (singleton.rs:655) covers NFT/DID reconstruction but injects with db.upsert_coin(...) one layer below the narrowing — it proves reconstruction works given coins in coins and says nothing about whether anything still puts them there. Corroborated from the other side by my revert probe: reverting the routing entirely reddened only two tests, both CAT.

Remedy is the lane's call, but the acceptance bar should be an end-to-end test driving refresh_tracked_coins and asserting a non-empty nfts/dids table. The likely shape: Nft/Did reconstructions are a proof, not a disproof — the parent read established a genuine singleton the wallet was hinted on — so they warrant their own outcome rather than Disproven.


Non-gating findings (follow-up tickets; do NOT hold the merge on these)

N1 — route_point_read_rows's doc contradicts its code. cat_discovery.rs:201-204 says a hinted coin not at a derived hash is "DROPPED rather than believed"; the code stages it and the inline comment at 226-228 says "Nothing is dropped." A surviving paragraph from the pre-error-2 version, in the public doc of the module that owns the admission decision.

N2 — first-sweep starvation still scales with the wall size. The attempts-ordering fixes repeat starvation, not bulk-fresh starvation: a wall of never-tried rows precedes a later never-tried honest row by seq. Measured with a wall of 2x the cap: honest coin promotes on pass 3, not pass 2.

SG7-PROBE pass1=PromoteStats { promoted: 0, refused: 0, deferred: 64 }
          pass2=PromoteStats { promoted: 0, refused: 0, deferred: 64 }
          pass3=PromoteStats { promoted: 1, refused: 0, deferred: 0 }

At the staging bound of 20,000 (db.rs:347) the worst case is ~313 passes, and in production a "pass" is one tip-spend attempt (tipping.rs:1085 is the only production caller of refresh_tracked_coins). Not gating: it terminates, it produces absence rather than a wrong figure, and against the same attacker input origin/main today produces something strictly worse — a fabricated XCH balance plus a permanent largest-first send kill-switch. The fixture pins wall == cap exactly, which is the one size at which the distinction is invisible.

N3 — two early-exit branches in promote_staged_cats have zero coverage. cat_discovery.rs:310-316 (spent coin, discard without a read) and cat_discovery.rs:318-325 (unconfirmed coin, defer). Fixture-collapse sweep result: across every fixture reaching promotion, spent_height is always None and created_height is always Some(_) — one distinct value each. Confirmed by mutation: neutering both branches leaves 685 passed / 0 failed. Both other values are production-reachable (fallback.rs:366 requests spent coins; a peer frame may carry an unconfirmed coin). Failure directions are safe, hence non-gating.

N4 — ChiaQueryLineage::parent_spend does not bind the puzzle reveal to the coin. fallback.rs:505-556 returns puzzle_reveal without checking it tree-hashes to cs.coin.puzzle_hash. The child-id match makes a wrong coin unusable, so this is not exploitable via a substituted coin — but the whole promotion proof now rests on the lineage source not fabricating a reveal for a real coin id, and router.rs:739-760 resolves this read peer-first. This PR does not introduce it, but it does promote it from "mislabels an already-admitted coin" to "admits a coin". Worth a hash check; defense-in-depth.

N5 — two admission sets, one filtered and one not. The catch-up builds its admission set with an explicit derived-hash filter (sync.rs:1057-1061), but the frame path uses session.subscribed, built unfiltered at sync_supervisor.rs:1356. Not live: puzzle_hashes are all curry_tree_hash(pk) outputs and derived hashes are cat_puzzle_hash(...) outputs, so intersecting them needs a preimage collision. Still the "two sets that must agree" shape this family's own generalisation warns about.

N6 — SPEC §18.11a enumerates three promotion outcomes; the code has four deletion reasons. The spent-coin discard (cat_discovery.rs:310-316) deletes a staged row with no parent read at all and counts it as refused, which the SPEC's "Disproven — a parent read that SUCCEEDED" does not describe.


Areas checked and CLEAR

  • Crypto / proof soundness — the CAT proof does not rely on cat_puzzle_hash for authenticity. promote_one proves membership from Cat::parse_children over the parent's spend, matched on the full child coin id, and attributes from the reconstruction's own values (cat_discovery.rs:451-466). Because the parent spend was accepted by consensus, CAT2's lineage-proof/TAIL rules already ran — that, not the derivation, is what establishes "this coin is a unit of that asset". The unpredicted hint branch is sound on the same footing: owned_p2.contains(hint) where hint is the reconstruction's p2_puzzle_hash, which the child's puzzle hash commits to.
  • GATING 2 adjudicated — the lane was RIGHT to refuse round 6's instruction. Verified against published chia-query 0.19.0 source, not its description: the ChiaQuery facade exposes only get_puzzle_and_solution -> Result<CoinSpend> (src/lib.rs:517), and get_puzzle_and_solution_opt exists only on the inner coinset client (src/coinset/mod.rs:416). Its own doc confirms Ok(None) means a null coin_solution, which coinset returns both for a spend it never had and one it is behind on. A third reason the lane did not give: router.rs:739 resolves peer-first, and under NC-12 a peer that is behind is indistinguishable from one with no such spend — so a terminal refusal would hand any peer a money-erasure primitive. Round 6's named remedy was the dangerous branch. The bounded-cost answer is correct.
  • Write-path enumeration into coins — I counted them myself rather than accepting "three". Production writers: upsert_coins (db.rs:1624) from apply_coin_states (sync.rs:930 frame, sync.rs:1132 catch-up) and from refresh_tracked_coins (rpc.rs:3139); plus promote_cat_admission (db.rs:1845), the proof gate. attribute_cat_coin (db.rs:2945) is UPDATE ... WHERE coin_id = ? and cannot admit. All other INSERTs are inside #[cfg(test)]. No fourth admission tier.
  • Admission filter tested adversarially — a derived hash passed as an address is removed (sync.rs:1057-1061); a hash derived for any asset is removed, since owner_of is keyed on the hash alone; "both at once" needs a preimage collision between curry_tree_hash and cat_puzzle_hash outputs.
  • DELETE-first promotion is genuinely race-free, not a smaller window: the claim and the write are in ONE transaction and the claim is the gate (db.rs:1827-1860). Either the rollback wins and rows_affected() == 0 writes nothing, or promotion wins and the rollback removes the coin by the same created_height predicate.
  • Reorg rollback covers staged rows (db.rs:1932-1955) — deleted above the fork, spends cleared, in the same transaction as coins.
  • Revert transcripts re-executed, all three reproduce: GATING 1 left: 2, right: 1 and left: 1, right: 0 (18 tests red); refresh_tracked_coins admits hint-matched coins as XCH, so a fabricated coin reaches the spend selector #394 left: 2, right: 1 and left: 1, right: 0; GATING 2 PromoteStats { promoted: 0, refused: 0, deferred: 64 } with left: 64, right: 1.
  • Suite verified myself: cargo test -p dig-wallet = 685/0 lib, 22/0 conformance, 8/0 money_path_vectors.
  • Closes #394 is EARNED. refresh_tracked_coins admits hint-matched coins as XCH, so a fabricated coin reaches the spend selector #394's asserted defect is hint-matched coins admitted as untyped XCH reaching the spend selector; probe B shows that guard is load-bearing. GATING 1 is a new regression introduced by the fix, not a failure to close refresh_tracked_coins admits hint-matched coins as XCH, so a fabricated coin reaches the spend selector #394. Refs #380 is the safe reading and I do not contest it.
  • Frame-path CAT promotion is dead in production, and the SPEC says so accuratelySPEC.md "Where promotion runs today" matches sync.rs:2858 (cfg(test)) and sync_supervisor.rs:2366 (passes None).
  • Secrets / authorship — no secret-shaped addition in the diff. All 21 commits authored and committed as Michael Taylor <michael@michaeltaylor.dev>, the one correct identity; no fabricated address.
  • Merge preconditions by name — all five required contexts present and SUCCESS (Lint commit messages, Check version increment, Rustfmt, Clippy, Test + coverage), unresolvedReviewThreads=0, mergeStateStatus=CLEAN. BLOCKED on draft=true alone, as expected.

What I did NOT achieve

  • The real-wallet acceptance run did not happen, and could not. There is no wallet.sqlite on this machine (~/.dig/ holds only seed.enc and session; the three AppData/ProgramData dig dirs hold none), and DIG_REAL_WALLET is unset, so both harness tests stay ignored. This matters more than it did last round: GATING 1 predicts a NEW real-wallet observable — refused > 0 and nfts/dids going empty — that the earlier {promoted: 8, refused: 0, deferred: 0} measurement would not have shown, since it predates the refresh_tracked_coins admits hint-matched coins as XCH, so a fabricated coin reaches the spend selector #394 fold-in. Whoever re-runs it should record the nfts/dids row counts, not only dig_balance.
  • I did not audit the dig-node binary crates outside dig-wallet; the diff does not touch them.
  • N4's puzzle-reveal binding is reasoned, not exploited — I did not build a hostile lineage source.

MichaelTaylor3d and others added 3 commits August 28, 2026 07:45
…DIDs

An NFT or DID coin sits at a singleton puzzle hash, never an owned p2 hash,
and is hinted to the owner -- so route_point_read_rows stages it. Promotion
reconstructed it correctly as a singleton, which is not a Cat, and the
let-else returned Disproven: the row was deleted terminally. Since the
point-read tier is the only production path that reaches reconstruct_all,
this silently emptied nfts/dids and re-paid the chain read for every
singleton on every refresh.

Disproven now means only 'the derivation was a lie'. A proven singleton gets
its own outcome, Resolved, and is written to nfts/dids -- never to coins,
where a missing asset id reads as XCH. Admission is not widened: the
singleton must be owned by a p2 hash the wallet controls, the same standard
an unpredicted CAT is held to, checked against the reconstruction rather
than the attacker-controlled hint.

Proven end to end through production routing (route_point_read_rows ->
promote_staged_cats), not through a helper below the narrowing -- which is
why nothing caught this: singleton.rs's own test injects with upsert_coin
one layer down. Also covers both previously-uncovered early exits in
promote_staged_cats.

Refs #380, #394

Co-Authored-By: Claude <noreply@anthropic.com>
18.11a listed three outcomes while the code had four deletion reasons, and
now has a fourth outcome: a proven singleton is Resolved, not Disproven.

Refs #394

Co-Authored-By: Claude <noreply@anthropic.com>
…lica

The acceptance measurement asked for the singleton row counts, not only the
$DIG figure: this round's defect predicts refused>0 and emptying nfts/dids,
which the pre-existing balance-only harness could not observe.

Refs #394

Co-Authored-By: Claude <noreply@anthropic.com>
@MichaelTaylor3d

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Round 8 — the gating finding is fixed, with the outcome set widened rather than admission

Head 904f506. Still DRAFT.

The fix

crates/dig-wallet/src/sage/cat_discovery.rs:421-447 (the let ... else is gone),
:399-433 (promote_singleton), :283-288 (Promotion::Resolved),
crates/dig-wallet/src/sage/db.rs:1873-1907 (promote_singleton_admission),
crates/dig-wallet/src/sage/singleton.rs:44-62 (the enum now carries the owner).

The gate's framing was right and I took it: Disproven now means only "the derivation was a lie".
A proven singleton gets its own terminal-but-successful outcome, Resolved.

Three properties, stated so each is checkable:

  1. Admission is NOT widened. A singleton is written to nfts/dids and never to coins,
    where a missing asset_id reads as XCH. The fabricated-coin hole is untouched: nothing new
    reaches coins by any route.
  2. The singleton must be OWNED. Reconstructed::Nft/::Did now carry the inner
    p2_puzzle_hash, for the same reason ::Cat already carried hint — the row says WHAT the coin
    is, and an admission decision additionally needs WHOSE it is. The check is against the
    reconstruction, never the hint, and it is the same standard an unpredicted CAT is held to.
    A singleton owned by another p2 hash is Disproven, because the claim that staged it was
    "this coin is for me" and the parent spend refutes exactly that.
  3. The proof is the same proof. The parent spend reconstructs THIS coin id as that singleton,
    through the same lineage machinery, with the same coin-id binding check upstream of it.

I did not touch anything the gate cleared.

Mutation transcript — five mutations, each landing on exactly one test

Committed before every revert; reverts done by file copy, never git checkout. git status verified
empty after restore, so the next run was not certified on a dirty tree.

# mutation result
1 singleton arms collapsed back into Disproven (the defect, restored) an_owned_nft_and_did_survive_the_point_read_tier FAILED — PromoteStats { promoted: 0, resolved: 0, refused: 2, deferred: 0 }, reproducing the gate's refused: 1
2 ownership guard neutered (if false) a_singleton_owned_by_a_stranger_is_refused FAILED — resolved: 1, refused: 0
3 spent-row early exit neutered a_spent_staged_row_is_dropped_without_a_parent_read FAILED — deferred: 1
4 record_promotion_attempt removed from the unconfirmed branch an_unconfirmed_staged_row_is_deferred_and_metered FAILED on the SECOND pass
5 singleton also written into coins an_owned_nft_and_did_survive_the_point_read_tier FAILED

Mutation 5 is the placement half, and it is there because the gate has caught this family asserting
outcomes when the fix was a placement: without it, "the row was not deleted" would be satisfied by a
version that admits the singleton to coins and reintroduces #394.

Mutation 2 is why test 1 alone is not enough — test 1 stays green under mutation 2, and the stranger
test stays green under mutation 1. Neither is redundant.

The end-to-end proof goes through production routing

an_owned_nft_and_did_survive_the_point_read_tier runs
route_point_read_rowsstage_cat_admissionspromote_staged_cats: the three calls
refresh_tracked_coins actually makes, with the repo's own mint_did_and_nft() simulator fixture.

It deliberately does not use db.upsert_coin. That is the instrument that failed here:
singleton.rs's own test injects one layer BELOW the narrowing, so it is green whether or not the
narrowing eats the coin. The defect lives in the seam between the two functions, so the test has to
span the seam. This is the gate's point, and it is the second time in this PR that a
"no capability lost" claim needed an end-to-end test to be true rather than a plausible one — the
first was my own self-caught error in round 7, in the same function. I have taken the standing
lesson as: when a change narrows what reaches a table, the test must enter above the narrowing,
not beside it.

Both singleton kinds are in the fixture rather than one, because NFT and DID reconstruct through
different driver calls (Nft::parse_child vs Did::parse_child) and a fix handling only one would
pass with either alone.

mint_did_and_nft is now shared from singleton::tests rather than re-minted in cat_discovery,
and returns a named MintedSingletons struct instead of a 7-tuple. A second copy of that fixture
would be a second definition of what an owned singleton looks like.

Suite

689 / 22 / 8, green — the gate's 685/22/8 plus the four new tests. cargo fmt clean,
cargo clippy -p dig-wallet --all-targets clean, cargo check --workspace --all-targets clean.

Blast radius checked

gitnexus MCP tools were not available in this session, so the radius was established by exhaustive
grep across every .rs in the repo plus a workspace-wide cargo check (§2.0's stated fallback,
declared here rather than implied).

  • Reconstructed:: — 4 construction/match sites, all inside dig-wallet, zero consumers in any
    other crate. (digstore_chain::singleton is a different module and is untouched.)
  • PromoteStats — 3 sites, all in cat_discovery.rs, plus the one production log in rpc.rs.
  • promote_one — 1 caller.
  • upsert_nft/upsert_did — bodies factored to executor-generic helpers; both public methods keep
    byte-identical SQL and behaviour, and reconstruct_all's use of them is unchanged.

cargo check --workspace --all-targets is the measurement, not the prediction: nothing outside
dig-wallet needed a change.

Nothing reaches further than the promotion outcome set and the point-read tier, which is the
re-gate scope named. The one edge worth stating explicitly: Reconstructed and PromoteStats are
pub, so this is a source-breaking change for an out-of-tree consumer. There are none in this
repo, dig-wallet is 0.x (already bumped 0.39.0 → 0.40.0 on this branch, root 0.160.0 →
0.161.0), and a 0.x minor is the correct SemVer slot for it — so I did not bump again for this
round, which would inflate the version without meaning.

Non-gating

  • N1 — fixed (cat_discovery.rs:201-206). The "DROPPED" paragraph was flatly false and is
    rewritten to say what the code does: such a coin is STAGED with the empty sentinel, and what the
    narrowing removes is BELIEF before the proof, not the coin.
  • N3 — fixed. Both early exits now have tests (mutations 3 and 4 above prove them load-bearing).
  • N6 — fixed (SPEC.md §18.11a). Now four outcomes, with Resolved specified, plus an explicit
    enumeration of the four cases Disproven covers and two new MUSTs: a proven non-CAT must not be
    refused, and a resolved singleton must be owned.
  • N2 / N4 / N5 — carried, not fixed, in one comment as asked. N2 (first-sweep starvation scaling
    with wall size) terminates, yields absence, and main is strictly worse today. N4
    (fallback.rs:505-556 never binds puzzle_reveal to coin.puzzle_hash) is reasoned, not
    exploited. N5 (filtered sync.rs:1057 vs unfiltered sync_supervisor.rs:1356) needs a preimage
    collision. All three belong in the hardening pass for this family, not in this PR.

The acceptance measurement — obtained, with a limitation I want on the record

The replica is on this machine: %LOCALAPPDATA%\DigNode\wallet.sqlite, copied with its -wal
and -shm as the gate said. It is the same replica the earlier lane used — 948 coins / 1 distinct puzzle hash / 0 attributed reproduces exactly, and xch_balance=1599179999972 is
unchanged to the mojo.

[REPLICA] coins=948 distinct_puzzle_hashes=1 attributed=0
[REPLICA] rows already at a derived CAT hash = 0
[REPLICA] nfts=0 dids=0
[REPLICA] dig_balance=0 xch_balance=1599179999972
[ROUTE] point-read tier: believed=948 staged=0

I extended the harness to report nfts/dids and to route the replica's real rows through
route_point_read_rows, which is the observable this round predicts.

And the honest reading is that this wallet cannot exhibit the defect. All 948 rows sit at the
single owned p2 hash, so the point-read tier stages zero of them; with nothing staged there is
no promotion pass, no refused, and no singleton to lose. So the run demonstrates
no regression — routing is byte-for-byte what it was, XCH unchanged — and it does not
corroborate the finding. The finding rests on the simulator fixture, which does exhibit it.

nfts=0 dids=0 is consistent with the defect having already emptied them on this machine, and
equally consistent with this wallet never having held an NFT. I am not claiming the first; there
is no evidence here that separates them, and dig_balance=0 shows this replica has not had the
harness-2 snapshot applied to it either.

the_real_wallet_reports_its_real_dig_balance still requires DIG_REAL_COINS/DIG_REAL_PARENTS
chain captures, which are not on this machine — that is where the earlier lane's
{promoted: 8, refused: 0, deferred: 0} / dig_balance 3856455 came from, and it is why that
measurement predates and does not certify this head. A wallet holding a real NFT would settle it in
one run; I could not manufacture one without spending mainnet XCH, which is outside this PR's scope.

@MichaelTaylor3d

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loop-security re-gate (round 9) — IN PROGRESS, not the verdict

Auditing head 904f5068a6535b78fa3c9b946655a6135ed60321 in an isolated detached worktree
(C:\tmp\worktrees\dn393-r9sec). No shared checkout touched.

Interim 1 — "nfts/dids are now attacker-reachable" is TRUE but the reachability is NOT new, and this PR NARROWS it

The brief asks what a stranger can now write to nfts/dids. Measured against the merge-base
(e0940780da29da5f38ae45838118110d9d8b2159), the answer is that the tables were already reachable
by a stranger before this PR, through a laxer path:

  • merge-base crates/dig-wallet/src/sage/rpc.rs:3105-3116refresh_tracked_coins extends the
    fetch with coin_records_by_hints(&phs), upsert_coins(&rows) every one of them into coins,
    then calls singleton::reconstruct_all.
  • crates/dig-wallet/src/sage/singleton.rs:432,436 (reconstruct_coins) writes
    db.upsert_nft(&row) / db.upsert_did(&row) with no ownership test whatsoever.

So on main today, any stranger who CREATE_COINs an NFT/DID singleton hinted to one of the
wallet's p2 hashes gets a row in nfts/dids even when the singleton is owned by the attacker's
own p2 hash
— the hint alone is sufficient.

At head, that same coin is routed to staging (cat_discovery.rs:216-253), and admission requires
promote_singleton (cat_discovery.rs:424-431) to find the reconstruction's inner
p2_puzzle_hash in owned_p2. The value tested is
Reconstructed::Nft { owner_p2, .. } / ::Did { owner_p2, .. }, sourced at
singleton.rs:149,161 from hexb(nft.info.p2_puzzle_hash) / hexb(did.info.p2_puzzle_hash)
the parent-spend reconstruction, never row.hint and never derived_owner_p2. The hint is not
consulted anywhere on the singleton branch.

Verdict on this half: not a regression; a narrowing. The residual surface is genuine NFT/DID
dust-spam (an attacker must actually transfer a real singleton to a p2 hash this wallet controls,
paying for it on chain), which is universal to every Chia wallet and strictly smaller than what
main accepts today. nfts/dids remain uncapped, which I am still assessing.

Still open in this round: re-execution of mutations 1/2/5, the Did::parse_child child-binding
question, the SPEC.md §18.11a clause-by-clause check, and the suite.

@MichaelTaylor3d

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Interim 2 — IN PROGRESS, not the verdict

The ownership guard is VACUOUS on the Reconstructed::Did branch — owner_p2 IS the attacker-supplied memo hint

The brief said: "Is the ownership check genuinely against the reconstruction? A hint is
attacker-supplied. If any branch consults the hint for ownership, that is the ninth-round defect."

It does, on the DID branch. Sound on NFT, vacuous on DID.

Why NFT is sound. chia-sdk-driver-0.36.0/src/primitives/nft.rs:273-278 builds the child as
Coin::new(parent_coin.coin_id(), info.puzzle_hash().into(), create_coin.amount) — the child's
puzzle hash is derived from info, and info.p2_puzzle_hash is inside it. singleton.rs:147
then asserts nft.coin.coin_id() == child_id. Since the coin id commits to the puzzle hash, that
equality cryptographically binds owner_p2. Good.

Why DID is not. chia-sdk-driver-0.36.0/src/primitives/did.rs:245-259:

let Memos::Some(memos) = create_coin.memos else { return Err(DriverError::MissingHint) };
let (hint, _) = <(Bytes32, NodePtr)>::from_clvm(allocator, memos)?;
...
let mut info = DidInfo::from_layers(&layers);
info.p2_puzzle_hash = hint;

p2_puzzle_hash is assigned verbatim from the parent spend's CREATE_COIN memo. parse_child
also stores the caller's coin unexamined — it never checks info.inner_puzzle_hash() against
create_coin.puzzle_hash, which is precisely the check the SDK's own construction path performs
at did.rs:80-82 (if child.info.inner_puzzle_hash() == create_coin.puzzle_hash.into()). The read
path omits the check the write path makes.

crates/dig-wallet/src/sage/singleton.rs:157-162 then does
owner_p2: hexb(did.info.p2_puzzle_hash), and crates/dig-wallet/src/sage/cat_discovery.rs:424
tests exactly that value. So for a DID, reconstructed_owner_p2 == the hint, and
promote_singleton's doc claim at cat_discovery.rs:413-418"the reconstruction is the only
thing that says who the singleton actually belongs to"
— is false on this branch.

Executed probe (own worktree C:\tmp\worktrees\dn393-r9sec, detached at 904f506)

Mallory mints a DID, then spends it keeping her own p2 while setting the memo hint to a
victim hash. The simulator ACCEPTED the spend, so it is chain-valid:

[R9] Did::spend_with returned child = false
[R9] reconstructed owner_p2 = 9999...9999   <-- the victim hash
[R9] victim  ph            = 9999...9999
[R9] mallory ph            = d366661d0d5c3b7fe4270ac716fb6cc20991ad96c1049ecae7a0fdb9405bee38
[R9] row.record_json address = "xch1nxvenxven...vsxnssf9"   <-- the VICTIM's own address

Note the SDK's constructor returned None (it detected the inconsistency); the parser did not.

Exploit chain

  1. Mallory owns any DID. Cost: one on-chain singleton, once.
  2. She spends it, child inner puzzle still hers, CREATE_COIN ... (memos <victim_p2>).
  3. The victim's coin_records_by_hints returns that child (that is what a hint is for).
  4. route_point_read_rows (cat_discovery.rs:216-253) stages it — not at an owned p2 hash.
  5. promote_one (cat_discovery.rs:493-496) → Reconstructed::Did { owner_p2 = victim_p2 }.
  6. promote_singleton (cat_discovery.rs:424) — guard passes.
  7. promote_singleton_admission (db.rs:1898) writes the row to dids, keyed by Mallory's
    launcher id, with address rendered as the victim's own address.

Repeatable per launcher; dids has no row cap (contrast CAT_ADMISSION_PENDING_MAX_ROWS = 20_000).

What I have NOT yet concluded

Whether this gates. It is very likely not a regression: at the merge-base the same row lands
via reconstruct_all with no ownership test at all (singleton.rs:436). I am now measuring what
reads dids, and running the end-to-end probe through route_point_read_rows +
promote_staged_cats to confirm the row actually lands. Verdict follows.

@MichaelTaylor3d

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Interim 3 — IN PROGRESS, not the verdict

The forged DID reaches dids through the PRODUCTION routing, and the remedy is proven available

Executed in my own worktree at 904f506, entering above the narrowing exactly as realization 1
requires — route_point_read_rows then promote_staged_cats, no db.upsert_coin:

[R9b] real child puzzle_hash    = 22afa23b31055faa09311acf59986d84d139c89c425964af1cad28b91fe18930
[R9b] reconstructed puzzle_hash = 3d93c9d59fd6d3c2eb988bf7eca52f3d3435b0aa3a893c710f50a02f5630f9c0
[R9b] believed=0 staged=1
[R9b] stats = PromoteStats { promoted: 0, resolved: 1, refused: 0, deferred: 0 }
[R9b] dids rows = 1
[R9b]   {"launcher_id":"f63dfd5aed...ff460bd1","coin_id":"d084df8f...","address":"xch1nxvenxven...vsxnssf9",...}
[R9b] coins rows = 0

So: a DID that Mallory still controls is admitted as Promotion::Resolved — the SUCCESS
outcome — and written to the victim's dids table, rendering the victim's own address as its
owner. refused: 0.

coins rows = 0 is the good news and it is important: the placement half holds even under
forgery. No balance is affected, nothing becomes selectable, and no spend is enabled. This is a
fabricated-identity-row primitive, not a fabricated-balance one.

The remedy is small, and it is the check the SDK's own write path already makes

The two puzzle hashes above differ. So binding the reconstruction to the real coin closes it:

parsed.info.puzzle_hash() == child.puzzle_hash    // Disproven when it does not

That is chia-sdk-driver's own Did::spend check (did.rs:80-82,
child.info.inner_puzzle_hash() == create_coin.puzzle_hash) transposed to the parse path, which
omits it. It is exactly the NFT branch's property, which singleton.rs:147 gets for free from
nft.coin.coin_id() == child_id. In the honest case the hashes are equal by construction
(Did::transfer returns self.child(p2, ..), whose coin is built from info.puzzle_hash()), so
the check does not cost a real DID.

Blast radius of the fabricated row (measured, not assumed)

Two consumers of dids, neither of which moves money:

  • crates/dig-wallet/src/sage/rpc.rs:2524 get_dids — the wallet lists a DID the user does not
    control.
  • crates/dig-wallet/src/sage/rpc.rs:3555-3565 did_parent_childresolve_did (:3569) →
    used once, at :3765, as the minting DID. Selecting a forged one produces a spend the user
    cannot sign; it fails, it does not misdirect funds.
  • crates/dig-wallet/src/sage/db.rs:2976 is_asset_owned answers true for that launcher id,
    and is exposed as an RPC method (rpc.rs:1138, 2516, 4324). It has no internal caller, so it
    gates nothing today — but it is an ownership assertion the wallet makes falsely.

dids is uncapped (contrast CAT_ADMISSION_PENDING_MAX_ROWS = 20_000), one row per launcher id.

Regression status: NO — the merge-base is strictly worse

At e0940780, singleton.rs:436 (reconstruct_coins) calls db.upsert_did(&row) with no
ownership test at all
, fed by rpc.rs:3105-3116 which upserts every hinted coin. The identical
forged row lands there today. This PR does not open the hole; it builds a guard over it that is
load-bearing on the NFT branch and vacuous on the DID branch.

Verdict, the mutation transcript, and the remaining checks follow.

@MichaelTaylor3d

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loop-security re-gate, round 9 — CHANGES-REQUIRED

Head audited: 904f5068a6535b78fa3c9b946655a6135ed60321 (resolved from
gh pr view 393 --json headRefOid, not from the dispatch brief). Base
e0940780da29da5f38ae45838118110d9d8b2159. Audited in my own detached worktree
C:\tmp\worktrees\dn393-r9sec; no shared checkout touched, no code edited on the branch.

The ninth defect exists and it is the one the brief predicted. The brief said: "If any branch
consults the hint for ownership, that is the ninth-round defect."
It does — on the DID branch, and
SPEC.md §18.11a ships a normative MUST that says it does not.

Read this first, because it bounds the remedy: the exploit is NOT a regression. The
merge-base admits the identical forged row through a laxer path. Merging this PR makes no user worse
off than main does today, and it makes the NFT branch strictly better. What must not ship is the
false MUST. F1 is one sentence; F2 is the ~5-line fix that makes the sentence true, and its
remedy is proven below.


F1 — GATING. SPEC.md:5490-5492 asserts an ownership property the code does not have

- **A resolved singleton MUST be owned.** Admission requires the inner p2 hash the RECONSTRUCTION
  names to be one the wallet controls -- the same test an unpredicted CAT is held to, and never
  the hint, which anybody may write.

For Reconstructed::Did, "the inner p2 hash the RECONSTRUCTION names" is the hint, verbatim.
chia-sdk-driver-0.36.0/src/primitives/did.rs:245-259 does
info.p2_puzzle_hash = hint, where hint is read straight out of the parent spend's CREATE_COIN
memos. crates/dig-wallet/src/sage/singleton.rs:157-162 copies it into owner_p2, and
crates/dig-wallet/src/sage/cat_discovery.rs:424 tests that value. The clause "and never the hint"
is false on one of the two branches it governs.

This is the third born-false §18.11a clause in this family, which is why it gates rather than
being a note. A spec MUST that says a guard is sound is exactly what stops the next round checking it.

§18.11a is otherwise accurate — I checked every clause against the diff:

Clause Evidence Verdict
Proven promotes into coins cat_discovery.rs:366 -> db.rs:1857 true
Resolved writes nfts/dids + deletes the staged row cat_discovery.rs:369, db.rs:1898-1919 true
Disproven deletes the staged row cat_discovery.rs:370-373 true
Unavailable MUST NOT delete cat_discovery.rs:344-362 true
A proven non-CAT MUST NOT be refused cat_discovery.rs:483-496 true
A singleton MUST NOT be written to coins db.rs:1898-1919; pinned by mutation 5 true
A resolved singleton MUST be owned, never the hint singleton.rs:157-162 FALSE for DID
Disproven covers four cases five producers exist (below) inaccurate, non-gating

F2 — GATING-with-F1 (fixing this makes F1's sentence true). The DID ownership guard is vacuous

crates/dig-wallet/src/sage/cat_discovery.rs:424owned_p2.contains(&reconstructed_owner_p2).
Load-bearing for NFT, vacuous for DID.

Why NFT is sound. chia-sdk-driver .../nft.rs:273-278 builds the child as
Coin::new(parent.coin_id(), info.puzzle_hash().into(), amount) — the puzzle hash is derived from
info, and p2_puzzle_hash is inside it. singleton.rs:147 then asserts
nft.coin.coin_id() == child_id, which commits to the puzzle hash. owner_p2 is bound.

Why DID is not. Did::parse_child stores the caller's coin unexamined and never compares
info.inner_puzzle_hash() against create_coin.puzzle_hash — which is precisely the check the SDK's
own construction path makes at did.rs:80-82. The read path omits the check the write path makes.
singleton.rs:155-163 adds no compensating check either (contrast the NFT arm at :147).

Executed exploit — end to end through the production routing

Probe run in my worktree at 904f506, entering above the narrowing (route_point_read_rows ->
stage_cat_admissions -> promote_staged_cats, no db.upsert_coin):

[R9b] real child puzzle_hash    = 22afa23b31055faa09311acf59986d84d139c89c425964af1cad28b91fe18930
[R9b] reconstructed puzzle_hash = 3d93c9d59fd6d3c2eb988bf7eca52f3d3435b0aa3a893c710f50a02f5630f9c0
[R9b] believed=0 staged=1
[R9b] stats = PromoteStats { promoted: 0, resolved: 1, refused: 0, deferred: 0 }
[R9b] dids rows = 1
[R9b]   {"launcher_id":"f63dfd5aed...","address":"xch1nxvenxven...vsxnssf9",...}
[R9b] coins rows = 0

State -> attacker action -> impact. Mallory owns any DID. She spends it, keeping her own p2 in
the new inner puzzle, and sets the odd CREATE_COIN's memo hint to the victim's p2 hash. The
simulator accepted the spend, so it is chain-valid. The victim's coin_records_by_hints returns the
child (that is what a hint is for); route_point_read_rows stages it;
promote_one reconstructs it as Reconstructed::Did { owner_p2 = victim_p2 }; the guard passes;
db.rs:1898 writes it to dids keyed by Mallory's launcher id, rendering the victim's own
address
as owner. Verdict counted as resolved: 1 — the SUCCESS outcome. Repeatable per launcher;
dids is uncapped (contrast CAT_ADMISSION_PENDING_MAX_ROWS = 20_000).

Impact, measured — identity fabrication, not balance fabrication

coins rows = 0: the placement half holds even under forgery. No balance, nothing selectable, no
spend enabled. Consumers of the forged row:

  • rpc.rs:2524 get_dids — the wallet lists a DID the user does not control.
  • rpc.rs:3555-3569 did_parent_child/resolve_did, used at :3765 as the minting DID —
    selecting a forged one yields a spend the user cannot sign. It fails; it does not misdirect funds.
  • db.rs:2976 is_asset_owned answers true for that launcher, exposed as an RPC method
    (rpc.rs:1138, 2516, 4324). No internal caller today, so it gates nothing — but it is an
    ownership assertion the wallet makes falsely.

Severity: MEDIUM, and explicitly NOT a regression. At the merge-base, singleton.rs:436
(reconstruct_coins) calls db.upsert_did with no ownership test at all, fed by
rpc.rs:3105-3116 upserting every hinted coin. The identical forged row lands on main today.

The remedy is proven available and small

The two hashes above differ, so binding the reconstruction to the real coin closes it:

parsed.info.puzzle_hash() == child.puzzle_hash   // else Disproven

In the honest case they are equal by construction (Did::transfer returns self.child(p2, ..),
whose coin is built from info.puzzle_hash()), so a real DID pays nothing.

Put it in reconstruct_parsed (singleton.rs:155-163), not in promote_singleton. Fixing only
the promotion guard leaves the wider pre-existing path open: reconstruct_coins (singleton.rs:436)
still calls upsert_did with no check, and Did::parse_child ignores the coin argument entirely,
so a parent spend of a DID can mint a bogus dids row from an unrelated child. (That second path is
read-analysis, NOT executed — see coverage below.)
Fixing the reconstruction closes both at once
and makes F1's sentence true as written.


F3 — non-gating. SPEC.md says Disproven covers four cases; the code has five

SPEC.md:5493-5497 enumerates: spent-on-chain, coin-id-does-not-bind, disagrees-with-derivation,
singleton-owned-by-another. It omits Reconstructed::Unknown -> Disproven
(cat_discovery.rs:498) — which the in-code doc at cat_discovery.rs:286-288 does list
("or reconstructs to nothing at all"). A countable claim that is off by one, in a section with a
born-false history. Fix the count while fixing F1.

F4 — non-gating. PromotedSingleton steals StagedCatRow's doc comment

crates/dig-wallet/src/sage/db.rs:349-361. The new enum was inserted between StagedCatRow's
five-line doc block and StagedCatRow itself. Result: PromotedSingleton's rustdoc opens with
"A discovered CAT coin awaiting a lineage proof … Deliberately NOT a CoinRow…", and
StagedCatRow (db.rs:369-370) now has no doc comment at all — losing the hypothesis-vs-belief
rationale that is the whole security argument of this PR. Move the block back.


What I verified clean, and how

Mutation transcript re-executed (1, 2, 5), each reproduced exactly. Applied by exact-text
replacement asserting a single occurrence; reverted between each; git status --porcelain empty
after every restore.

Mut Change Result
1 singleton arms -> Disproven an_owned_nft_and_did_survive_the_point_read_tier FAILED, PromoteStats { promoted: 0, resolved: 0, refused: 2, deferred: 0 } — matches the transcript
2 ownership guard neutered a_singleton_owned_by_a_stranger_is_refused FAILED, resolved: 1, refused: 0 — matches
5 singleton also written to coins test 1 FAILED on a singleton must never enter coins

Independence confirmed by execution, not assertion: under mutation 1, test 2 stayed ok; under
mutation 2, test 1 stayed ok. They are two tests, not one. Mutation 5 confirms "not deleted" cannot
be satisfied by a version that reintroduces #394's fabricated-balance defect.

Realization 1 applied as a sweep. For every narrowing this PR introduces, its tests enter above
it: the hint->staging narrowing is tested at route_point_read_rows (cat_discovery.rs:1380);
promote_singleton's guard and the spent/unconfirmed early exits are tested at
promote_staged_cats, which is above all three. I confirmed the end-to-end test contains no
db.upsert_coin call — the only mention is in its FIXTURE DESIGN doc explaining why. And
refresh_tracked_coins (rpc.rs) really does make those calls: route_point_read_rows ->
upsert_coins(&rows) (believed only) -> stage_cat_admissions(&staged) -> promote_staged_cats.
mint_did_and_nft is now pub(crate) and genuinely crossing the module boundary
(cat_discovery.rs:1372 calls crate::sage::singleton::tests::mint_did_and_nft).

N1 — true now. route_point_read_rows's paragraph (cat_discovery.rs:201-206) says the coin is
STAGED with the empty sentinel. The loop at :216-253 has exactly three outcomes — believed
(owned hash), believed (already promoted), staged — and drops nothing. The old "DROPPED" wording is
gone and the replacement is accurate.

Promotion::Resolved logging — fixed, and no other stat is silent. rpc.rs:3162 now reads
stats.promoted > 0 || stats.resolved > 0 || stats.refused > 0 and emits resolved as a field at
:3166. The only other arm is the deferred > 0 debug at :3169. All four stats have a log path;
an all-zero pass is correctly silent. I checked for a stat whose log condition predates it — there
is none.

Admission is not widened (the half that holds). I re-enumerated every writer of coins:
db.rs:1602 upsert_coin, :1632 upsert_coins, :1857 inside promote_cat_admission. The other
four INSERT INTO coins are inside mod tests (:5721, :6929, :7014, :7136).
promote_singleton_admission (:1898-1919) calls only upsert_nft_on/upsert_did_on. No singleton
path reaches coins — confirmed statically, by mutation 5, and by coins rows = 0 in my own forged
run.

nfts/dids reachability is NARROWED, not opened — full argument in
#393 (comment).

Suite, verified myself. cargo test -p dig-wallet --tests on a clean run:
lib 689 passed / 1 ignored, conformance 22, money_path_vectors 8, real_wallet 2 ignored, 0
failed.
Exactly the claimed 689/22/8. A first run under my own parallel compile showed
sync_supervisor::tests::stall_evidence_survives_the_end_of_a_session timing out at 120s; isolated
it passes in 0.03s — a load flake, not a defect. cargo fmt --all -- --check exit 0;
cargo clippy --workspace --all-targets exit 0.

Merge preconditions, by name (check-merge-preconditions.sh): Lint commit messages, Check
version increment, Rustfmt, Clippy, Test + coverage — all five present and SUCCESS;
unresolvedReviewThreads=0; mergeStateStatus=CLEAN. RESULT: BLOCKED on draft=true alone,
as expected.

Authorship: all 25 commits Michael Taylor <michael@michaeltaylor.dev>, author and committer —
the configured machine identity, no fabrication. Secrets: no match for key/token/password/
credential/mnemonic patterns anywhere in the added lines.

Version bump — the lane's judgement is right, no further bump needed. Reconstructed::Nft(Box<..>)
-> Reconstructed::Nft { row, owner_p2 } is source-breaking on a pub enum, and PromotedSingleton
is new pub. Under 0.x, ^0.39 is semver-incompatible with 0.40, so 0.39.0 -> 0.40.0 is
the breaking slot. cargo clippy --workspace --all-targets passing proves the two in-repo consumers
(dig-node-service, dig-runtime, both path) still build.

PR #393 / #395 do not cross. Changed files are Cargo.lock, Cargo.toml, SPEC.md,
crates/dig-wallet/Cargo.toml and seven files under crates/dig-wallet/src/sage/ plus its
tests/. Zero dig-node-service source files. The root Cargo.toml/Cargo.lock touch is the
workspace binary version (0.160.0 -> 0.161.0), required by the version-increment gate.

Real-wallet measurement. I accept the lane's reading and its stated limitation verbatim: all 948
rows sit at the single owned p2 hash, so the tier stages zero of them; the run proves no
regression
and does not corroborate the finding, and nfts=0 dids=0 is equally consistent with
both explanations. That reasoning is correct and I am not asking for more from it. The harness is
#[ignore]d, env-gated, and opens a copy (real_wallet_cat_discovery.rs:1-23) — read-only, no
risk to the user's live replica.


Coverage I did NOT achieve — stated plainly

  1. Mutations 3 and 4 not re-executed. The brief required 1, 2 and 5 at minimum; I ran those
    three. The two N3 early-exit mutations are unverified by me this round.
  2. The second, wider DID path is read-analysis, not an executed probe. I proved
    Did::parse_child ignores its coin argument by reading it and by the executed forgery, but I
    did not execute the variant where an odd-mojo ordinary payment from a DID spender mints a
    bogus dids row via reconstruct_coins. Treat that as a hypothesis with strong code evidence.
  3. Rounds 1-7 material not re-audited. I took round 8's clears as given (crypto soundness,
    DELETE-first race-freedom, reorg coverage of staged rows, the refusal of round 6's classification
    remedy). The one round-8 claim I independently re-derived is "no fourth admission tier", which
    holds.
  4. Workspace suite not run — only -p dig-wallet (plus a workspace-wide clippy --all-targets,
    which type-checks every crate including tests).
  5. No live/mainnet execution. Everything is simulator + in-memory SQLite. I did not observe a
    real wallet ingest a real forged DID.
  6. is_asset_owned's hex normalisation — it binds asset_id raw for the nfts/dids queries
    while normalising for coins (db.rs:2963-2979). Pre-existing, outside this diff, not chased.

Verdict

CHANGES-REQUIRED, and the required change is small.

  • F1 must not ship as writtenSPEC.md §18.11a's "never the hint" MUST is false for the DID
    branch. This is the gate.
  • F2 is the right way to satisfy F1: bind the DID's p2_puzzle_hash to the child coin in
    reconstruct_parsed. ~5 lines, remedy proven above, and it closes the wider pre-existing path
    too. If the lane prefers to defer the code fix, F1 can alternatively be satisfied by stating the
    DID limitation explicitly in §18.11a and filing F2 — but do not ship the sentence as it stands.
  • F3 and F4 are non-gating, both cheap enough to fold into the same commit.

What I am NOT asking for. No re-architecture, no further rounds on the promotion outcome set, no
re-gate of anything round 8 cleared. Everything else in this diff is clean: the outcome set is
correct, the placement half holds under mutation, the tests enter above the narrowing, the logging
gap is closed, the suite is green, the preconditions pass by name, authorship is correct, there are
no secrets, the version slot is right, and #393 does not touch #395's crate.

Round 8 fixed a real defect and, as predicted, exposed the next one one layer down. The exploit it
leaves behind is pre-existing and not fund-moving — this PR is still a net security improvement
over main, and the only thing genuinely blocking it is a sentence that claims more than the code
delivers.

MichaelTaylor3d and others added 3 commits August 28, 2026 09:20
`Did::parse_child` reads the owner out of the parent spend's CREATE_COIN memo
hint and stores it verbatim, so the ownership guard downstream tested an
attacker-writable value. Recompute the singleton puzzle hash from the parsed
info and require it to equal the real child coin's.

Refs #380

Co-Authored-By: Claude <noreply@anthropic.com>
Three probes for the binding: the pure core, the wider reconstruct_coins
path that has no ownership test of its own, and production routing
(route_point_read_rows -> promote_staged_cats) with an honest DID riding
alongside the forged one as a control.

Refs #380

Co-Authored-By: Claude <noreply@anthropic.com>
The "never the hint" ownership MUST was false for DIDs until the binding
in reconstruct_parsed; state the binding as its own normative clause so the
ownership clause is true as written. Disproven covers five cases, not four
-- the fifth is a coin that reconstructs to nothing at all. Also restore
StagedCatRow's doc comment, which PromotedSingleton was inserted in front of.

Refs #380

Co-Authored-By: Claude <noreply@anthropic.com>
@MichaelTaylor3d

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Round 9 addressed — head 66782d1c12d6edc0c14176f171b05be0b1afdbe5

All four findings are in. Full write-up is in the PR body under "Round 9 — the DID ownership guard was
vacuous; bound, and the claim bounded"
; the short form:

  • F2 (the code)crates/dig-wallet/src/sage/singleton.rs:169-186. The binding is in
    reconstruct_parsed, as directed, so it also closes the pre-existing reconstruct_coins path that
    calls upsert_did with no ownership test — and that path is now covered by execution, not by
    reading (reconstruct_coins_writes_no_did_row_for_a_forged_hint), which closes coverage gap 2 from
    your round.
  • F1 (the gate) — §18.11a gains "A reconstructed singleton MUST reproduce its own coin", naming
    the DID read path it exists for. "Never the hint" is now true as written rather than aspirational.
  • F3 — Disproven covers five cases. F4StagedCatRow's doc block moved back in front of
    StagedCatRow.

Mutation, entering above the narrowing (route_point_read_rows -> stage_cat_admissions ->
promote_staged_cats). Binding mutated out:

a_did_hinted_to_us_but_owned_by_a_stranger_is_refused ... FAILED
  PromoteStats { promoted: 0, resolved: 2, refused: 0, deferred: 0 }
a_did_whose_hint_disagrees_with_its_puzzle_is_not_reconstructed ... FAILED
  left: Did { .. owner_p2: "5a5a..5a" }   right: Unknown
reconstruct_coins_writes_no_did_row_for_a_forged_hint ... FAILED  (left: 1, right: 0)
test result: FAILED. 689 passed; 3 failed

Restored: git status --porcelain empty, 692 / 22 / 8, fmt clean, clippy 0 errors. Your two
pre-existing singleton tests stayed ok under the mutation — they genuinely could not see this.

The fixture is what was missing, not the assertion. No previous fixture had a DID whose memo hint
disagreed with its actual p2, because Did::transfer derives the hint from the destination. The new
one varies them independently, and the end-to-end test carries an honest DID alongside the forged
one with both p2 hashes in ours, so "refuse every DID" fails rather than passes.

Claim bounded in the body, in both directions, as you asked: not a regression (the merge-base admits
the identical row through reconstruct_coins), a net improvement (that path is now closed too), and
identity fabrication rather than balance fabrication (coins rows = 0).

is_asset_owned's hex-normalisation asymmetry (db.rs:2963-2979) is recorded in the body as
pre-existing and outside the diff — not fixed, not filed.

Re-gate scope: the singleton reconstruction (singleton.rs's DID arm and its three new tests) and the
§18.11a clauses, plus the db.rs doc-comment move.
Nothing reaches further — no signature changed, no
admission widened, and the only behavioural delta is one added refusal branch on one arm of one function.

Staying DRAFT.

@MichaelTaylor3d

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loop-security round 10 — IN PROGRESS, not the verdict

Head audited: 66782d1c12d6edc0c14176f171b05be0b1afdbe5, resolved from gh pr view 393 --json headRefOid.

Finding 1 (clear) — the push hazard is genuinely self-corrected; no round-9 commit is stranded.

origin/loop/390-cat-staging = 66782d1c12d6edc0c14176f171b05be0b1afdbe5
origin/loop/390-r7          = 66782d1c12d6edc0c14176f171b05be0b1afdbe5
local  loop/390-r7          = 66782d1c12d6edc0c14176f171b05be0b1afdbe5
merge-base(origin/main, head) = e0940780da29da5f38ae45838118110d9d8b2159 = origin/main

Both refs point at the identical commit, so nothing landed only on loop/390-r7. The branch is also
up to date with main (merge-base equals origin/main tip), so the strict-up-to-date precondition is
satisfied at this head.

Auditing from my own detached worktree C:\tmp\worktrees\dn393-secgate10 cut at that SHA. No shared
checkout mutated.

Remaining: curry-chain verification against chia-sdk-driver 0.36.0, the fall-through/Disproven
attack, mutation re-execution, fixture control check, sibling-fixture confinement sweep,
reconstruct_coins ownership claim, SPEC clause-by-file:line, and merge preconditions.

@MichaelTaylor3d

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loop-security round 10 — IN PROGRESS, not the verdict (2/n)

Finding 2 (clear) — the curry chain holds, verified against chia-sdk-driver-0.36.0 source, not argued.

Paths are in ~/.cargo/registry/src/index.crates.io-*/chia-sdk-driver-0.36.0/. Lock confirms
dig-wallet resolves that exact version (Cargo.lock chia-sdk-driver 0.36.0,
checksum 33d22cc4…; crates/dig-wallet/Cargo.toml:54 pins chia-wallet-sdk = "0.36.0").

  1. src/primitives/singleton.rs:70-72SingletonInfo::puzzle_hash() is a default trait method:
    SingletonArgs::curry_tree_hash(self.launcher_id(), self.inner_puzzle_hash()).
  2. src/primitives/did/did_info.rs:110-118impl SingletonInfo for DidInfo::inner_puzzle_hash() is
    DidArgs::curry_tree_hash(self.p2_puzzle_hash.into(), recovery_list_hash, num_verifications_required, SingletonStruct::new(launcher_id), metadata.tree_hash()).
    p2_puzzle_hash is the FIRST curried argument, inside the committed tree hash.
  3. So did.info.puzzle_hash() is a tree hash over (launcher_id, p2_puzzle_hash, recovery_list_hash, num_verifications_required, metadata). Two distinct p2_puzzle_hash values yielding one puzzle
    hash requires a SHA-256 tree-hash collision. There is no non-collision path.

The defect being fixed is confirmed in the driver, verbatimsrc/primitives/did.rs:257-258:

let mut info = DidInfo::from_layers(&layers);
info.p2_puzzle_hash = hint;

hint is read at did.rs:254 out of the parent spend's CREATE_COIN memos and assigned with no
validation whatsoever
. Did::parse_child also takes coin as a parameter and stores it verbatim
(did.rs:263) — it never compares coin.puzzle_hash to anything. So before this diff the returned
Did could carry a coin wholly unrelated to its info.

Honest DIDs are equal by construction, confirmed: Did::child (did.rs:33-42) delegates to
Singleton::child_with (singleton.rs:47-60), which builds the child coin's puzzle hash as
SingletonArgs::curry_tree_hash(info.launcher_id(), info.inner_puzzle_hash()) — the same
expression the new check recomputes. Did::transfer (did.rs:112-140) creates the on-chain coin at
new_info.inner_puzzle_hash() with memos = ctx.hint(p2_puzzle_hash), so hint and owner coincide.

Finding 3 (clear) — the SPEC's "the NFT path needs no equivalent" is TRUE, and for a stronger
reason than the comment gives.

Nft::parse_child (src/primitives/nft.rs:254-286) does not take the child coin as a parameter at
all
. It computes it:

coin: Coin::new(parent_coin.coin_id(), info.puzzle_hash().into(), create_coin.amount)

singleton.rs:148 then requires nft.coin.coin_id() == child_id, and coin_id is
sha256(parent_coin_info || puzzle_hash || amount). So the coin-id equality already commits to
info.puzzle_hash(), hence to p2_puzzle_hash, however child_from_p2_spend derives it — the
NFT arm is safe even if that derivation were hint-based, because the comparison is against the real
on-chain child id. The asymmetry is structural: NFT derives its coin FROM info, DID accepts the coin
AS INPUT. That is precisely the shape the new check restores for DID.

Finding 4 (clear) — the fall-through cannot be reached transiently, and cannot be induced by a
third party.

  • The DID arm is an if let Ok(Some(did)) that, on refusal, falls through rather than returning
    (singleton.rs:169-182). A CAT is unaffected: Did::parse_child requires the PARENT puzzle to
    parse as SingletonLayer<DidLayer> (did.rs:210-221), which a CAT parent never does.
  • The comparison operands are both derived from data already in handdid.info from the
    parsed parent spend, child.puzzle_hash from the staged row, whose coin id was re-derived and
    bound one step earlier at cat_discovery.rs:466-472. No network read, no clock, no I/O sits
    between them, so there is no transient input that can flip the branch. A parent spend that cannot
    be read never reaches here at all — it is deferred at cat_discovery.rs:340-364, which is the
    correct non-deleting direction.
  • A third party cannot force an honest DID into the refusal: the operands are fixed by the DID
    owner's own spend. Only the DID's own spender chooses them.

@MichaelTaylor3d

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loop-security round 10 — IN PROGRESS, not the verdict (3/n)

Finding 5 (clear) — mutation 1 RE-EXECUTED by me, on my own worktree, and it reproduces exactly.

Applied by exact-text replacement with a uniqueness assertion (occurrences of target: 1), single
line changed (git diff --stat1 file changed, 1 insertion(+), 1 deletion(-)):

-        if reconstructed_puzzle_hash == child.puzzle_hash {
+        if true || reconstructed_puzzle_hash == child.puzzle_hash {

Result — 689 passed; 3 failed, the same three tests, the same left/right values the lane reported:

a_did_hinted_to_us_but_owned_by_a_stranger_is_refused   cat_discovery.rs:1509
    left: (2, 0, 0)   right: (1, 1, 0)
    PromoteStats { promoted: 0, resolved: 2, refused: 0, deferred: 0 }
a_did_whose_hint_disagrees_with_its_puzzle_is_not_reconstructed   singleton.rs:710
    left: Did { ..., owner_p2: "5a5a…5a" }   right: Unknown
reconstruct_coins_writes_no_did_row_for_a_forged_hint   singleton.rs:746
    left: 1   right: 0

The owner_p2 in the second failure is literally 5a5a…5a — the forged victim hash — so the test
fails on the forged attribution itself, not on an incidental.

Finding 6 (clear) — the independence result is CONFIRMED BY EXECUTION, and it is the important one.

In the same mutated run, round 8's two tests both stayed green:

mut1.log:87  test sage::cat_discovery::tests::a_singleton_owned_by_a_stranger_is_refused ... ok
mut1.log:94  test sage::cat_discovery::tests::an_owned_nft_and_did_survive_the_point_read_tier ... ok

Round 8's blind spot is therefore demonstrated rather than argued: the guard it shipped is fully
satisfied while the forgery this round fixes sails through. The three new tests are the only thing in
the suite that sees it.

Baseline and restore, both verified by me:

  • Baseline at 66782d1c: 692 passed / 0 failed / 1 ignored (lib), 22 conformance, 8
    money_path_vectors, plus 2 real_wallet_cat_discovery tests ignored by design. Matches the claim.
  • Restored with git checkout -- from the committed tree. git status --porcelain empty,
    git clean -nd empty, HEAD still 66782d1c…, line 172 back to the guarded form.
  • Worktree used: C:\tmp\worktrees\dn393-secgate10, cut detached. No shared checkout touched, no
    other lane's worktree read or removed.

@MichaelTaylor3d

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loop-security round 10 — IN PROGRESS, not the verdict (4/n)

Finding 7 (NON-GATING, defense-in-depth) — an HONEST DID can reach the refusal, but only via an
unsettled metadata/recovery update, and the pre-fix behaviour was worse. Proven by execution.

I wrote a probe into my own worktree: Alice mints her own DID, then spends it with
Did::update_with_metadata (new metadata, no settling spend), and I called reconstruct on the child.

POST-FIX  PROBE-METADATA-UPDATE-RESULT: Unknown
          PROBE-owner-is-alice: true
PRE-FIX   PROBE-METADATA-UPDATE-RESULT: Did { ... recovery_hash: null,
          address: "xch16dnxv8g...", ... } owner_p2: "d366661d..."   (== Alice's own p2)

Mechanism. Did::parse_child builds DidInfo from the parent's layers
(chia-sdk-driver-0.36.0/src/primitives/did.rs:250-258did_layer and singleton_layer are both
the parent's) and only overwrites p2_puzzle_hash. update_with_metadata (did.rs:150-171) creates
the child at the new metadata's inner puzzle hash. So metadata, recovery_list_hash and
num_verifications_required are read from the parent while the coin commits to the new ones, and the
new equality at singleton.rs:172 fails. Consequence: Unknown -> Disproven
(cat_discovery.rs:501) -> discard_cat_admission.

Why I am NOT gating on it:

  1. Not attacker-triggerable. Both operands come from the DID owner's own spend. A third party
    cannot induce it, and there is no fund loss — a DID singleton is 1 mojo and the coin is untouched.
  2. The pre-fix behaviour was a custody lie, not a benefit. It wrote a dids row carrying the
    PARENT's recovery_hash and metadata while the on-chain coin commits to different ones. A stale
    recovery list is a custody-relevant falsehood; refusing is the more honest outcome.
  3. This diff is faithfully mirroring the SDK's OWN write-path check. Did::spend
    (did.rs:80-82) already does if child.info.inner_puzzle_hash() == create_coin.puzzle_hash and
    returns Ok(None) otherwise, and parse_child's own doc says it "relies on the child ... having
    the same metadata as the parent" or "the DID cannot be parsed or spent without additional
    context". The unsettled coin is unparseable by the SDK's definition on both paths; the diff makes
    the read path agree with the write path.
  4. DIG never produces this state. grep -rn 'update_with_metadata|UpdateDidAction' across all
    crates returns zero non-probe hits, so it requires the user to update the DID from a different
    wallet; Chia's own convention is that such a coin needs a settling spend before wallets parse it.
  5. The direction is "absent", which this design names as its accepted failure direction
    (cat_discovery.rs:205-206), and discard_cat_admission (db.rs:1927-1934) writes no
    tombstone
    — it is a plain DELETE, so a re-observed coin re-stages and the state self-heals the
    moment the DID is settled.

Recommended as a follow-up ticket, not a merge gate: either carry the child's own metadata through
reconstruction, or classify a puzzle-hash mismatch whose only differing field is metadata as a
deferral rather than a refutation.

Restored again with git checkout --; git status --porcelain and git clean -nd both empty,
HEAD still 66782d1c….

@MichaelTaylor3d

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loop-security round 10 — IN PROGRESS, not the verdict (5/n)

Finding 8 (clear) — the sibling-fixture confinement does NOT extend to the NFT or CAT arms. I
verified all three driver calls against source, and the invariant is structural.

The distinguishing property is whether the driver call accepts the child coin as an INPUT or
computes it
:

arm driver call child coin bound by
NFT Nft::parse_child(ctx, parent_coin, puzzle, solution)no coin param computed: Coin::new(parent.coin_id(), info.puzzle_hash().into(), amount) (nft.rs:274-278) singleton.rs:148 coin-id equality
CAT Cat::parse_children(...)no coin param computed via Cat::child_withCoin::new(parent_id, info.puzzle_hash().into(), amount) (cat.rs), and CatInfo::puzzle_hash() = CatArgs::curry_tree_hash(asset_id, inner_puzzle_hash()) singleton.rs:189 coin-id equality
DID Did::parse_child(..., child)takes coin stored verbatim (did.rs:263) nothing, before this diff

Two specifics I checked because they were the plausible places for a repeat:

  • CAT ownership is NOT hint-derived. Cat::child_from_p2_create_coin (cat.rs:252-256) takes
    the p2 hash from create_coin.puzzle_hash — the committed on-chain value — not from a memo. The
    one place it does read a hint is the revocation branch, and it validates it first:
    if create_coin.puzzle_hash == RevocationLayer::new(hidden, hint).tree_hash(). That is the same
    binding pattern this diff adds for DID. So the "fabricated CAT balance via forged hint" analogue
    does not exist.
  • The NFT arm would be safe even if its p2 were hint-derived, because the comparison is against
    the real child's coin id, not against a self-consistent recomputation.

Finding 9 (clear) — merge preconditions asserted BY NAME; BLOCKED on draft=true alone.

PR DIG-Network/dig-node#393  tip 66782d1c…  base main
draft=true  mergeStateStatus=CLEAN  unresolvedReviewThreads=0
  Lint commit messages    SUCCESS
  Check version increment SUCCESS
  Rustfmt                 SUCCESS
  Clippy                  SUCCESS
  Test + coverage         SUCCESS
RESULT: BLOCKED — do not merge  [EXIT 1]

Finding 10 (clear) — scope, authorship, secrets, version.

  • crates/dig-node-service/0 files in git diff --name-only. PR feat(collateral): serve mirror-coin collateral control methods and spends.list #395's territory is untouched.
  • 28 commits, one author and one committer: Michael Taylor <michael@michaeltaylor.dev>. No
    fabricated identity.
  • Diff grep for private-key headers, ghp_/github_pat_, AKIA…, projectId, mnemonic/passphrase/
    password/token assignments — no hits. Only two files added, both real source
    (cat_discovery.rs, tests/real_wallet_cat_discovery.rs); no scratch residue.
  • dig-wallet 0.39.0 → 0.40.0 is correct and needs no further bump. reconstruct_parsed is
    pub and its return value changes for a class of input (DidUnknown), which is a behaviour
    break — and under 0.x the minor IS the breaking slot, so the already-open 0.40.0 absorbs it.
    Root dig-node 0.160.0 → 0.161.0. Check version increment is green.

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loop-security round 10 — VERDICT: PASS

Head audited: 66782d1c12d6edc0c14176f171b05be0b1afdbe5 (resolved myself via
gh pr view 393 --json headRefOid, and re-resolved unchanged after the last probe). Base
e0940780da29da5f38ae45838118110d9d8b2159 = origin/main. Still draft=true. Do not merge on my
account — merging is the orchestrator's call and the draft flag is the only thing blocking.

No security defect in the diff. The round-9 fix is correct, minimal, and closes a real forgery that
was reachable on main for the cost of one mojo. I found nothing gating, in scope or adjacent.

Audited from my own detached worktree C:\tmp\worktrees\dn393-secgate10. No shared checkout was
mutated
and no other lane's worktree was read, used or removed. Every mutation was applied there,
by exact-text replacement with a uniqueness assertion, and reverted with git checkout --;
git status --porcelain and git clean -nd are empty and HEAD is still 66782d1c….

Area-by-area

Area Verdict Why
Crypto — the curry chain CLEAR Verified against chia-sdk-driver-0.36.0 source, not argued. p2_puzzle_hash is the FIRST curried argument of DidArgs::curry_tree_hash (did_info.rs:110-118), and SingletonInfo::puzzle_hash() curries that in turn (singleton.rs:70-72). Two owners → one puzzle hash needs a SHA-256 tree-hash collision.
The defect it replaces CONFIRMED REAL did.rs:257-258 assigns info.p2_puzzle_hash = hint with zero validation, and parse_child stores its coin parameter verbatim (did.rs:263) without ever comparing it.
Fall-through / Disproven CLEAR Both operands are already in hand — no network read, clock or I/O between them — so no transient input can flip the branch. An unreadable parent never reaches here; it is deferred (cat_discovery.rs:340-364). A third party cannot induce the refusal: only the DID's own spender chooses the operands.
NFT / CAT arms CLEAR Neither driver call accepts the child coin as input; both compute it from info, and singleton.rs:148/:189 compare against the REAL child coin id. CAT ownership comes from create_coin.puzzle_hash (cat.rs:252-256), never a memo.
reconstruct_coins CLEAR, and better than claimed The "no ownership test of its own" claim is true — but singletons can no longer enter coins at all (sync.rs:764-771 and route_point_read_rows both admit only wallet-p2 or already-proven rows), so after this fix the missing test is unreachable for DID and structurally impossible for NFT.
AuthZ / who can invoke CLEAR The new code adds no endpoint and no capability. It only makes an existing admission path stricter.
Amplification / cost CLEAR, unchanged The refusal is a pure in-memory comparison placed BEFORE any write, on a path whose read was already paid. It cannot increase work per request.
Persisted state CLEAR discard_cat_admission (db.rs:1927-1934) is a plain DELETE with no tombstone, so no refusal can become a permanent denial primitive.
Secrets / scope / authorship CLEAR No secret-shaped strings; crates/dig-node-service/ untouched (0 files); 28 commits, one identity, Michael Taylor <michael@michaeltaylor.dev>; no scratch residue.

Executed evidence (all run by me, this round)

  • Mutation 1 (if true || …, 1 line, uniqueness asserted): 689 passed / 3 failed — the three
    named tests, the exact left/right values, including owner_p2: "5a5a…5a" on the forged attribution.
  • Independence, CONFIRMED BY EXECUTION: in that same run, round 8's
    a_singleton_owned_by_a_stranger_is_refused and an_owned_nft_and_did_survive_the_point_read_tier
    both stayed green. Round 8's blind spot is demonstrated, not asserted.
  • Over-correction mutation (if false && …), which I added because it is what separates a fix
    from a regression: 686 passed / 6 failed, including an_owned_nft_and_did_survive_the_point_read_tier
    — i.e. refusing every DID re-creates refresh_tracked_coins admits hint-matched coins as XCH, so a fabricated coin reaches the spend selector #394 and the suite catches it. The fixture control is real and
    discriminating. (A 6th failure, sync_supervisor::…::stall_evidence_survives_the_end_of_a_session,
    is unrelated to singletons and appeared only in that heavily-contended 123s run; it is green in
    every clean run.)
  • Mutations 3 and 4 — the inherited gap is now CLOSED. I ran both:
    • spent-row early exit neutered → a_spent_staged_row_is_dropped_without_a_parent_read fails,
      left: (0,0,1) right: (1,0,0).
    • unconfirmed metering dropped → an_unconfirmed_staged_row_is_deferred_and_metered fails,
      left: (1,0,0) right: (0,0,0) on the second pass. The read-amplification bound is genuinely pinned.
  • Baseline / restore: 692 passed / 0 failed / 1 ignored, conformance 22,
    money_path_vectors 8, re-run clean after the last revert. cargo fmt --check exit 0;
    cargo clippy -p dig-wallet --all-targets -- -D warnings exit 0. Both run by me.
  • Merge preconditions, by name: all five required contexts present and SUCCESS
    (Lint commit messages, Check version increment, Rustfmt, Clippy, Test + coverage),
    unresolvedReviewThreads=0, mergeStateStatus=CLEAN, BLOCKED on draft=true alone.
  • Push hazard: origin/loop/390-cat-staging and origin/loop/390-r7 are the same commit
    66782d1c…. Nothing is stranded. Branch is up to date with main.
  • 0.39.0 → 0.40.0 is right. reconstruct_parsed is pub and now returns Unknown where it
    returned Did, which is a behaviour break — and under 0.x the minor IS the breaking slot, so the
    already-open 0.40.0 absorbs it. No further bump owed.

Two NON-GATING findings (follow-up tickets, do NOT hold the merge)

A. An honest DID with an UNSETTLED metadata/recovery update is now refused. Severity: low.
crates/dig-wallet/src/sage/singleton.rs:172.
I proved this by probe rather than argument: Alice mints her own DID, spends it with
Did::update_with_metadata, and reconstruction returns Unknown post-fix versus a Did row
pre-fix. Did::parse_child reads metadata/recovery_list_hash/num_verifications_required from
the parent's layers (did.rs:250-258) while the child commits to the new ones, so the equality
fails. Not gating because: it is not attacker-triggerable (both operands come from the owner's own
spend); there is no fund loss; the pre-fix behaviour was itself a custody lie (it displayed a stale
recovery_hash); the diff is faithfully mirroring the SDK's own write-path check at did.rs:80-82;
grep -rn 'update_with_metadata|UpdateDidAction' across all crates returns zero non-probe hits,
so DIG never produces this state; and the failure direction is absence, which §18.11a explicitly
names as accepted. Suggested fix: carry the child's own metadata through reconstruction, or treat a
mismatch whose only differing field is metadata as a deferral rather than a refutation.

B. parse_did_in has the SAME missing binding and a doc claim that is false. Severity: low.
crates/dig-wallet/src/sage/singleton.rs:273-287PRE-EXISTING, byte-identical on main, and
untouched by this diff
, which is why it is not a gate.

match Did::parse_child(ctx, parent.coin, parent_puzzle, solution_ptr, child) {
    Ok(did) => Ok(did),      // no child binding at all — child_id is never even computed
    Err(_) => Ok(None),
}

Its sibling parse_nft_in three lines above (:263-266) does bind
(Ok(Some(nft)) if nft.coin.coin_id() == child_id), and parse_did_in's own doc comment claims
"None if the parent is not a DID or the child does not match" — a claim the body does not
implement. Callers are mint.rs:240 and rpc.rs:3568-3574 (resolve_did), both spend-building
paths, so a wrong DidInfo produces a puzzle reveal that cannot hash to coin.puzzle_hash and the
spend is rejected at consensus: it fails closed, which is why this is a follow-up rather than a
gate. This diff also strictly reduces its exposure, since a forged DID can no longer reach the
dids table resolve_did reads from. Worth a ticket to give it the same one-line binding and to fix
the doc.

SPEC and docs — every clause checked against a file:line in this diff

  • "A reconstructed singleton MUST reproduce its own coin" (SPEC.md:5493) — satisfied at
    singleton.rs:171-173. Its sub-claim that the NFT path needs no equivalent is true, and I
    verified the reason independently at nft.rs:274-278 + singleton.rs:148. Its scoping to
    "§18.11 reconstruction" is what keeps it from being born-false against parse_did_in, which is a
    spend-input resolver and not a table-populating reconstruction — I checked §18.11's own text for
    this. Not born-false.
  • "Disproven covers five cases" — enumerated and each mapped to code: spent-without-a-read
    cat_discovery.rs:325; coin id does not bind its own fields :466-471; disagrees with the
    derivation / hint names an address we do not control :536; singleton owned by another p2 hash
    :438; reconstructs to nothing :501. Exactly five, all present, all terminal. (The lane's own
    note said :498 for the fifth; the actual line is :501 — drift in the report, not in the SPEC.)
  • db.rs doc blocksPromotedSingleton at db.rs:354 now carries its own block (:351-353)
    and StagedCatRow at :370 carries its own (:367-369). The doc-comment theft is fixed.

Coverage I did NOT achieve — state plainly

  1. No live or mainnet execution. Everything is chia-sdk-test::Simulator plus in-memory SQLite.
    The two real_wallet_cat_discovery tests are #[ignore]d and I did not run them; they need a
    live replica. Inherited gap, unchanged.
  2. The SPEC prose has no mutation coverage — it is prose. I checked each clause against a
    file:line by hand instead, which is the best available substitute and is not equivalent.
  3. The warn! on the refusal branch is unasserted. A silent refusal would still pass the suite.
    The refusal outcome is asserted three ways, so this is observability, not correctness.
  4. I did not line-by-line audit the whole 3,445-line diff. I scoped to the singleton
    reconstruction, its SPEC clauses, the promotion state machine it feeds, the three driver arms, and
    a diff-wide sweep for secrets/scope/authorship/version. The CAT-staging body was gated in rounds
    1-8 and I did not re-open it.
  5. is_asset_owned's hex-normalisation asymmetry (db.rs:2963-2979) — not examined, per the
    brief's scope.
  6. I did not verify the chia-sdk-driver 0.30.0 line that also sits in Cargo.lock alongside
    0.36.0. dig-wallet resolves 0.36.0 (checked), and the 0.30 line comes in via other crates; that
    split is pre-existing and outside this diff.

Bottom line

PASS, plainly. Nine rounds have each found a real defect; this is the first round where I could
not. The fix is one comparison in the right place, it rests on a curry chain I verified in the
driver's own source rather than taking on trust, its tests fail for the right reason and carry an
honest-DID control that fails an over-correction, and the two things I did find are both pre-existing
or non-attacker-triggerable and both fail in the safe direction. This PR is a net security
improvement over main: it closes a forgery by which anyone able to spend any DID could name any
wallet as the owner of their singleton, for the price of one mojo.

@MichaelTaylor3d
MichaelTaylor3d marked this pull request as ready for review August 28, 2026 18:26
@MichaelTaylor3d
MichaelTaylor3d merged commit 4523894 into main Aug 28, 2026
15 checks passed
@MichaelTaylor3d
MichaelTaylor3d deleted the loop/390-cat-staging branch August 28, 2026 18:26
MichaelTaylor3d added a commit that referenced this pull request Aug 28, 2026
Co-Authored-By: Claude <noreply@anthropic.com>
MichaelTaylor3d added a commit that referenced this pull request Aug 28, 2026
…ends.list (#395)

* build(deps): adopt control-interface 0.23.0 and the collateral math crate

Bumps to latest published (CLAUDE.md 2.4b), verified against the crates.io
index rather than memory:

  dig-node-control-interface  0.21 -> 0.23  (service + wallet)
  dig-logging                 0.1  -> 0.2   (service)
  dig-constants               0.11.2 -> 0.13.0 (service + core, together)
  dig-mirror-collateral       (new) 0.3     (service)

The chia-* set is deliberately NOT moved. chia-bls and chia-protocol publish
0.48.0, but chia-wallet-sdk's own latest (0.36.0) requires ^0.36.1, so bumping
the pair would ship this crate internally split across two chia lines -- the
exact failure that shipped twice elsewhere in one day. The set is already at
its latest coherent point.

Adopting 0.23.0 turns the contract-conformance test red, naming the four
methods this branch exists to serve:

  control.spends.list
  control.collateral.requirement
  control.collateral.margin.get
  control.collateral.margin.set

Co-Authored-By: Claude <noreply@anthropic.com>

* feat(collateral): per-epoch record store, local safety margin, funding advice

The node's side of the deterministic mirror-coin collateral model, built on
dig-mirror-collateral 0.3 -- no formula is restated locally, because
required_per_store is the WHOLE answer and re-deriving it as
equilibrium x multiplier - handicap omits the floor clamp.

Three parts, split along the line that matters:

  * EpochRecordStore -- what this node censused, keyed by epoch. Distinguishes
    a record it never wrote (Absent) from one it wrote and cannot read
    (Unreadable); the remedies differ.
  * CollateralConfig -- the LOCAL safety margin, persisted. A config predating
    the field loads as the +1% default, never 0: zero is a deliberate choice to
    post exactly, and reporting it for a config that never expressed one tells
    the operator they declined a cushion they were never offered.
  * buffer_advice -- how much DIG to hold, and the three funding states.

The buffer is deliberately NOT requirement x epochs of runway. Collateral is
RECLAIMED, not spent, and reclaims run first and are never gated on funds, so
steady state is roughly ONE epoch's lock. The real peak is the transition
overlap, so the recommendation is lock + lock x (9/8)^4 -- one epoch's lock,
the overlap, and four epochs of escalation headroom, in one expression rather
than three that could double-count. Escalation compounds, so the horizon is a
choice and it is reported with the figure.

Only ShortNow and DangerouslyLow may notify. BelowRecommendedBuffer is a
readout: a normal node sits there much of the time, and an alert an operator
learns to dismiss teaches them to dismiss the two that matter. An unknown
requirement or an unknown balance yields Unknown and never a zero cost.

Co-Authored-By: Claude <noreply@anthropic.com>

* feat(spend-audit): cursor paging and an explicit completeness flag

The PR#31 gate measured that control.spends.list is not a bare dispatch arm:
SpendQuery carried no after_id although the method is cursor-paginated, and
SpendLog::query could not report 'complete' -- the contract distinguishes
'that is all' from 'we stopped here', and on an audit record those read the
same and mean opposite things.

  * SpendQuery.after_id -- positional, not a filter, so matches() ignores it.
    Resuming by time would drop every spend sharing the boundary millisecond,
    and automated spends are issued by a cycle so several routinely share one.
  * SpendLedger.complete -- computed from whether rows were actually withheld,
    never from whether the page came out full. A matching set that is an exact
    multiple of the page size fills its last page and would otherwise read as
    truncated forever.
  * SpendLog::cursor_of -- the id of the last row HANDED to the caller, never
    a marker for where the record got to.

An unknown cursor is REFUSED. Restarting would repeat rows the caller has
seen; an empty page would either end the walk early or leave no cursor to
advance and loop forever.

The fixture puts six rows across three timestamps with two ties, and pages at
2, 3 and 4 so a boundary falls inside a tie and so one page is exactly full
and final. A fixture with distinct timestamps or a page size of 6 could not
tell a correct cursor from a time-based one.

Co-Authored-By: Claude <noreply@anthropic.com>

* feat(control): serve spends.list and the three collateral methods

Closes the drift the contract bump exposed: four published methods with no
server. All four now dispatch, and the conformance test that named them is
green.

  control.spends.list             -- one page of the automated-spend record,
                                     decoded through SpendsListParams so the
                                     contract's own page-bound validation runs
                                     without this handler remembering to.
  control.collateral.requirement  -- the consensus-derived per-store figure, or
                                     a NAMED reason. Never a zero, never a
                                     stale epoch's figure as this epoch's.
  control.collateral.margin.get   -- the local margin; a config predating the
                                     field reads as +1%, never 0.
  control.collateral.margin.set   -- persisted before it is reported, and a
                                     value over the ceiling is refused rather
                                     than clamped, so stored intent and node
                                     behaviour cannot disagree on the money path.

A record that could not be READ is now SPEND_AUDIT_UNREADABLE (-32048, taken
from the shared catalogue rather than restated) and never an empty page:
'nothing to report' is the answer a person stops investigating on.

CLI verbs, so a headless machine can drive all of it:

  dign collateral requirement
  dign collateral margin
  dign collateral margin set <tight|default|generous|BP>

The margin is shown with what it costs, not as a bare setting, and a preset
resolves to dig-mirror-collateral's own constant -- a second spelling of
'generous' is how two surfaces come to post different amounts for one choice.
An unrecognised word is refused rather than falling through to the default.

Co-Authored-By: Claude <noreply@anthropic.com>

* feat(collateral): the recommended DIG buffer and the three funding states

Closes dig-node#389. `dign collateral buffer [--balance <DIG>]` composes the
requirement, the margin and the served-advertisement count into one number a
person acts on -- 'add 9.706 DIG', not 'balance low' -- with the working shown
so the figure can be sanity-checked.

Also adds the census epoch marker seam: the node reads which epoch the census
settled on rather than deriving it from its own clock, because the schedule is
a consensus fact and a guess would post against the wrong epoch. Absent or
malformed marker means NOT CENSUSED, never epoch zero.

Two defects the live run caught, both the same class -- an unknown rendered as
a reassuring answer:

  * a missing or non-array hosted-store list defaulted to ZERO advertisements,
    which produces a 0.000 DIG recommendation that every balance clears. A node
    that could not tell how much it owes would have answered 'funded'. It now
    answers UNKNOWN.
  * a node serving nothing said 'funded -- at or above the recommended buffer',
    implying its stores were covered when it has none. It now says there is
    nothing to collateralise.

A malformed --balance is refused rather than parsed as zero, which would have
reported SHORT NOW over a typo, and the amount is scaled by integer arithmetic
because 0.001 DIG steps are where an f64 starts rounding.

Co-Authored-By: Claude <noreply@anthropic.com>

* docs(spec): SPEC section 24 -- the mirror-coin collateral contract

Normative contract for the three collateral control methods and the three
dign verbs: the consensus/local split, the four unknown reasons and why they
are distinct, the census-names-the-epoch rule, the margin's persistence and
refuse-not-clamp bound, the reclaim-not-spend derivation of the recommended
buffer, and the three funding states with only two of them notifying.

Section 24.6 records the hazard the live run surfaced: an unknown and a
genuine zero produce identical arithmetic, so an unreadable store list read as
zero yields a recommendation every balance clears and a node that cannot tell
how much it owes reports 'funded'.

Co-Authored-By: Claude <noreply@anthropic.com>

* fix(collateral): derive the epoch from the canonical clock, not a stored marker

Self-correction. The first pass assumed the mirror-coin epoch schedule was a
chain-anchored consensus fact the node could not compute, and introduced a
marker file for the census to write. That was wrong: dig-constants 0.13.0
publishes the schedule as a WALL-CLOCK one -- 7-day epochs from a fixed
genesis -- and mirror_epoch_at_unix_ms is its canonical implementation.

The marker is removed and the epoch is derived. Three consequences:

  * The epoch number is an INPUT TO COIN IDENTITY (dig_mirror_coin::mirror_hint
    takes it), so a second implementation of the arithmetic would derive
    different coins rather than a different label. The constant is delegated to,
    never re-derived.
  * Deriving it makes a STALE answer structurally unrepresentable. The lookup is
    for the epoch current NOW, so a node whose census stopped running reports
    not_censused for the present epoch instead of confidently serving last
    week's figure. The marker could not have detected that -- it was the hazard.
  * The surface is genuinely live rather than pending a census. A node with a
    record for the current epoch now answers with a real number, unaided.

Verified on a real node: it derived epoch 104 by itself and reported
3.780 DIG per store from 17 advertisements across 820 owners; when the record
was edited to name epoch 103 instead, it correctly refused with not_censused
rather than serving the stale figure.

One-based and div_euclid are both pinned in the test, at the only input that
can tell them apart: the millisecond before genesis, which a truncating divide
collides with epoch 1.

Co-Authored-By: Claude <noreply@anthropic.com>

* docs(spec): SPEC 24.3 follows the epoch clock correction

The section described the superseded marker design. The epoch is derived from
dig-constants' wall-clock schedule, and the section now records why that is
what makes a stale answer unrepresentable -- and why a stored marker would
reintroduce the hazard it was meant to avoid.

Co-Authored-By: Claude <noreply@anthropic.com>

* docs(collateral): name the census-vs-local trap the buffer must not fall into

No behaviour change. The buffer's pair count is read from THIS NODE's hosted
stores; control.collateral.requirement's 'stores'/'owners' are NETWORK census
figures and the contract says in as many words that neither is a node count.
Multiplying either by the requirement bills one operator for the whole
network's collateral -- a confident wrong number on a money surface, which is
worse than no number.

The fixture already made that mistake observable (census stores 12 vs pairs
10, so a substitution changes the answer); it now says so, because a fixture
that catches something by accident stops catching it at the first tidy-up.

Co-Authored-By: Claude <noreply@anthropic.com>

* style(collateral): satisfy clippy on the buffer summary

Three findings, caught locally before CI: a useless format! over a literal and
two needless borrows into serde_json::to_value. No behaviour change; 469 lib
tests still green.

Co-Authored-By: Claude <noreply@anthropic.com>

* test(collateral): pin the rendering half of the never-render-an-unknown rule

The wire was already honest -- an unknown answer carries no figure at all --
but nothing asserted the human line does not invent one on the way out, and
the summary functions had no tests.

Three groups:
  * an unknown requirement renders its reason and NO amount, for all four
    reasons, and the four remedies must stay distinct rather than collapsing
    into one unactionable sentence
  * a known requirement shows the census inputs behind the figure, says the
    figure is pre-margin, and renders owners as 'collateralised owner(s)'
    rather than as nodes
  * a 1 bp margin renders as +0.01% rather than rounding to zero, and a value
    that is nobody's preset is not mislabelled as the nearest one

Co-Authored-By: Claude <noreply@anthropic.com>

* refactor(collateral)!: conform the buffer to the declared 0.24.0 contract

Reshapes #389's calculation to what dig-node-control-interface PR#36 declares,
so adopting control.collateral.buffer is a wiring step rather than a reshape.

FIXES A REAL DEFECT, not just names. The pair count was read from
control.hostedStores.list -- the rival derivation SPEC 4.2e used to direct and
PR#36 removes. A pinned/cached store list RESEMBLES the served (owner, store,
root) set without being it, and the error is invisible because both produce a
plausible number on a money surface. There is no published method for the
served set, so it is now an explicit --roots operand and its absence reports
served_set_unknown rather than being guessed.

  * BufferAdvice is a TAGGED enum. The unknown case has no representable
    numeric field, so a zero cannot be emitted even by accident -- a zero
    buffer reads as 'no buffer needed'.
  * BufferUnknownReason: served_set_unknown / reclaim_state_unknown /
    balance_unknown. A test asserts none collides with a census reason, which
    is the structural argument for a separate method: collapsing them would
    report a missing LOCAL fact as a missing NETWORK one.
  * Fields renamed to the contract's: recommended_buffer_*, spendable_*,
    overlap_*, escalation_headroom_*, pairs_served_by_this_node, and
    escalation_ceiling_micros beside horizon_epochs (both required).
  * FundingState::is_shortfall() replaces is_notification() and EXCLUDES
    below_recommended_buffer. FundingState::Unknown is gone -- unknown is a
    state of the ANSWER, not of the funding.

Escalation is no longer a hand-rolled (9/8)^n. It steps
dig_mirror_collateral::step_multiplier in its own high band, which keeps two
behaviours the closed form loses: per-step truncation (0.8x over 4 epochs is
1.281444, not 1.281445) and the MULT_CEILING_MICROS clamp, so a long horizon
cannot manufacture headroom the controller could never produce. A test drives
500 epochs and asserts it lands exactly on the ceiling.

Co-Authored-By: Claude <noreply@anthropic.com>

* docs(spec): SPEC 24.5/24.6 follow the 0.24.0 buffer contract

Records the three-term decomposition, the served-set-is-not-the-hosted-list
rule that a rival derivation in the old text used to direct, the
step_multiplier delegation and why a closed form loses truncation and the
ceiling clamp, and the tagged-unknown shape that makes a zero unrepresentable.

Co-Authored-By: Claude <noreply@anthropic.com>

* fix(collateral): resolve state paths internally, clearing 3 high CodeQL alerts

CodeQL traced DIG_NODE_STATE_DIR through ctx.state_dir into three file
operations (rust/path-injection, 3x high). Main carries no alerts of this rule,
so these were genuinely new rather than an inherited pattern.

The root cause was a second resolver, not a missing guard: the handlers passed
ctx.state_dir in, while spend_audit's existing code asks state_dir() itself.
Production now goes through CollateralConfig::load/save and
EpochRecordStore::in_state_dir, and spends_list uses SpendLog::in_state_dir --
one component knowing where one file lives. The explicit-directory forms remain
for tests.

Four handlers no longer need &ControlCtx at all, so the parameter is dropped
rather than underscored.

Co-Authored-By: Claude <noreply@anthropic.com>

* feat(collateral): adopt control-interface 0.24.0 and serve control.collateral.buffer

0.24.0 published while this branch was in flight, declaring the buffer as its
OWN method rather than a widening of .requirement. Adopted in both
dig-node-service and dig-wallet, and the method is now served.

The local BufferAdvice/BufferFigures/FundingState/BufferUnknownReason types are
DELETED in favour of the contract's CollateralBufferResult,
CollateralFundingState and CollateralBufferUnknownReason. Keeping a parallel set
would have been a rival definition of a money-path shape, which is how two
surfaces come to disagree about a funding warning.

Three things the published shape corrected in this lane's version:

  * a fourth reason, RequirementUnknown. This lane folded a missing requirement
    into served_set_unknown -- reporting a NETWORK gap as a LOCAL one, which
    sends the operator to fix the wrong thing. Now distinct, with its own
    remedy sentence, and a test asserts no buffer reason collides with a census
    reason.
  * epoch and protocol_version travel WITH the buffer, so a client never has to
    pair it with a separately-fetched requirement and hope both describe the
    same epoch.
  * Funded, not Adequate; and the lock and the shortfall are DERIVED rather
    than carried, because the contract publishes the inputs to both and a
    fourth field could disagree with the three it comes from.

The node's own answer is honestly unknown today: it passes None for both the
served set and the balance rather than approximating them from the hosted-store
list or an arbitrary address. A set that merely resembles the served roots, or a
balance for the wrong address, is a plausible wrong number on a money surface --
worse than no number. dign still produces a real figure from operands.

Conformance: 5/5, node and contract now agree on all five methods.

Co-Authored-By: Claude <noreply@anthropic.com>

* feat(cli): dign collateral buffer asks the node, with operands as an override

Closes the gap between the CLI-parity list and reality: the list claimed a verb
drove control.collateral.buffer and none did. With no operands the verb now
calls the node -- it is the authority on its own served set, preference and
balance. --roots/--balance remain as an override so a person can get a figure
before the node can enumerate its served set.

One renderer (render_buffer) serves both paths. Two renderings of one money
figure is how an operator comes to trust the wrong one. A payload this build
cannot decode is reported as unreadable rather than rendered as a figure.

Co-Authored-By: Claude <noreply@anthropic.com>

* docs(spec): SPEC 24.5/24.6 follow the served 0.24.0 buffer method

Adds the fourth unknown reason (requirement_unknown) and why it is distinct --
a missing requirement is a NETWORK gap while the other three are LOCAL, and
reporting one as the other sends the operator to fix the wrong thing.

Also records why the buffer is its own method rather than a widening of
.requirement, that the funding state is carried rather than re-derived by
clients, funded rather than adequate, and that the dign operands are an
override rather than a fallback the node applies to itself.

Co-Authored-By: Claude <noreply@anthropic.com>

* chore(cli): drop committed splice scratch files and restore spliced doc comments

The `.tsplice.py` and `.wire2.py` helpers were editing scratch and never
belonged in the tree; they are now ignored via the worktree's info/exclude
rather than the repo .gitignore, which is for artefacts every clone produces.

One of those splices concatenated three doc blocks above `parse_dig_amount`,
orphaning `chia_peers_action`'s "listing is the default" security rationale and
`collateral_action`'s "an unrecognised preset is REFUSED" rationale onto an
unrelated parser. A security comment on the wrong function is worse than a
missing one: it reads as reviewed. Each block is back on the function it
describes.

Co-Authored-By: Claude <noreply@anthropic.com>

* fix(cli): refuse an undecodable collateral answer instead of rendering a figure

`summarize_collateral_requirement` guarded positively on `state == "unknown"`
and let every other payload fall through to a formatter whose fields were each
`unwrap_or(0)`. An unrecognised state therefore rendered a REAL epoch number
beside a fabricated `0.000 DIG per store` — authoritative-looking rather than
degraded, and the exact money lie the unknown branch exists to prevent. An
operator acting on it posts nothing and leaves every store root
uncollateralised.

The trigger is a planned event, not a failure: `CollateralRequirementResult` is
`#[serde(tag = "state")]`, so a new variant is additive, and `dign` ships
separately from the node — the next minor would put an unrecognised state in
front of every already-installed CLI.

All three collateral renderers now decode typed and refuse what they cannot
decode, matching `summarize_collateral_buffer`, which already did:

- `summarize_collateral_requirement` — the gating case.
- `collateral_buffer`'s `margin_bp` — an absent margin defaulted to zero
  understates the recommendation by exactly the cushion the operator chose,
  flipping `BelowRecommendedBuffer` to `Funded`.
- `summarize_margin` — found by sweeping the same class; zero is a legitimate
  margin, so an absent one substituted for it is indistinguishable from a real
  answer on the line an operator reads back after `margin set`.

Tested on the RENDERED OUTPUT, since the defect was in what a person reads:
the fixtures carry the same epoch as the truthful control, so any leaked field
fails the assertion.

Co-Authored-By: Claude <noreply@anthropic.com>

* fix(collateral): an unreadable state directory is not an uncensused epoch

Round-2 gate findings D2 and D3, plus the recorded decisions for D1 and D4.

D2 -- `EpochRecordStore::get` returned `Absent` for ANY read failure, collapsing
the Absent/Unreadable split the method's own doc comment exists to preserve. The
consequence is a wrong REMEDY rather than a wrong figure: `Absent` renders as
"run the census for this epoch", which writes to the very file that could not be
read, so an operator with a broken state directory is sent to a remedy that
fails again without ever naming the fault. Only `NotFound` is now `Absent`.

D3 -- `dign collateral buffer --roots` rendered an operator-supplied count in a
line otherwise identical to the node's own measured answer, so a guess was
indistinguishable from a measurement, including in the recommendation derived
from it. The line now marks its provenance, which makes the named limitation
visible where the figure is read rather than only in the help text. The marker
goes when dig-node#387 lands the served-set count.

D1 (a well-formed but false stored record scales into a multi-million-DIG
recommendation) is recorded as a bounded known rather than fixed: writing that
record needs the state directory that also holds the identity key, arbitrary
corruption already fails closed, and a plausibility bound derived at the read
side would be a rival implementation of the controller. The honest remedy is a
protocol_version ceiling check where the census writer's invariants live.

D4 (a paired-tier margin outlives `pairing.revoke`) is likewise documented, not
fixed: it is a pairing-lifecycle question, and answering it for this one setting
would establish by accident a rule the other paired-tier writes do not follow.

Co-Authored-By: Claude <noreply@anthropic.com>

* docs(spec): SPEC 24.2/24.7 fix the undecodable-answer and operand-provenance rules

Three normative statements the round-2 gate showed were absent:

- a client MUST NOT render a requirement it cannot decode as a figure, and MUST
  NOT borrow the `unknown` rendering, which asserts the node named a missing
  fact that an undecodable answer did not;
- `record_unreadable` is decided by the record FILE, not only its contents: a
  missing file is `not_censused`, an unreadable one is `record_unreadable`;
- `collateral buffer` MUST mark a root count that came from `--roots`.

Co-Authored-By: Claude <noreply@anthropic.com>

* fix(collateral): pin the margin and provenance guards, and stop the config's silent fallback

Round-2 re-gate follow-ups. Four items, all in files this PR already owns.

1. The round-2 claim that three tests failed independently was WRONG: reverting
   the S1 margin decode and the D3 provenance marker together left the suite
   green, so only the F1 leg was pinned. Both guards are observable ONLY in the
   rendered string, and both sat behind two `call_control` round trips where no
   test could reach them. `buffer_outcome` now separates everything after the
   I/O, and two tests read what a person reads.

   The margin test asserts the FLIP rather than merely an error: the balance is
   calibrated at run time to the ZERO-margin recommendation, the exact point at
   which `unwrap_or(0)` and the truthful decode disagree about whether the
   operator is funded. The provenance test asserts a PLACEMENT: the same advice
   through the shared renderer must stay silent, so moving the marker into
   `render_buffer` -- the obvious simplification -- makes the node's own measured
   answer claim an operator supplied a count they never typed, and fails.

2. A third orphaned doc block, this one introduced by this PR rather than
   inherited: a `load_from` description was attached to `load()`, which takes no
   directory, while the function that actually swallows the error carried no
   rationale at all. Each block is now on its own function.

3. The D1 rationale rested on a false premise -- it named the identity key as
   living in the state directory, but `state.rs` holds ONLY the control/auth
   state and is identity-independent by design. The conclusion survives, because
   the control token is the strictly greater capability, so the sentence now
   rests on the token. A correct decision resting on a false premise is how the
   premise gets reused elsewhere.

4. `CollateralConfig::load_from` carried the exact Absent/Unreadable conflation
   D2 just fixed, one type above it in the same file. Falling back to the `+1%`
   default is still right -- refusing to start over a corrupt preference file
   would take the node down over the one setting whose absence is survivable --
   but doing it SILENTLY is not: an operator whose margin has reverted learns
   about it only from a figure that looks deliberate. A file that exists and
   cannot be read, or cannot be parsed, is now warned about by path and cause.

Co-Authored-By: Claude <noreply@anthropic.com>

* chore(release): 0.162.0 — 0.161.0 was taken by #393

Co-Authored-By: Claude <noreply@anthropic.com>

---------

Co-authored-by: Claude <noreply@anthropic.com>
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