> ## Documentation Index
> Fetch the complete documentation index at: https://docs.autheo.com/llms.txt
> Use this file to discover all available pages before exploring further.

# License lifecycle

> The four-state license system on Autheo Chain: ISSUED, BOUND, ACTIVE, and REVOKED — with all transition triggers and edge cases.

Every license on Autheo Chain moves through a four-state machine managed by the `x/license` keeper.

## The four states

| Status    | Description                                                                                                                         |
| --------- | ----------------------------------------------------------------------------------------------------------------------------------- |
| `ISSUED`  | License minted and owned. Not yet attached to any validator. Can be bound or transferred (if policy allows). Does not earn rewards. |
| `BOUND`   | License attached to a validator. No active delegation yet. Cannot be transferred. Does not earn NFT emission rewards.               |
| `ACTIVE`  | License attached to a validator with a live delegation that has positive token value. Earns per-block NFT emission rewards.         |
| `REVOKED` | Governance-suspended. No staking operations permitted. Only `MsgReinstateLicense` (governance only) can restore it.                 |

## State transitions

### ISSUED → BOUND

Triggered by `MsgBindLicense`. Requirements:

* License status must be `ISSUED`
* Category policy must permit the binding
* Any cooldown from a prior unbind must have elapsed
* For Sovereign: binding target must be the owner's own validator address
* For Prime/Core: target validator must exist, be bonded, and not be jailed

### BOUND → ACTIVE

Triggered automatically when delegation is created or increased on the bound validator:

| Trigger                        | Description                                     |
| ------------------------------ | ----------------------------------------------- |
| `MsgDelegate`                  | Owner delegates tokens to the bound validator   |
| `MsgCreateValidator`           | SDK self-delegates on validator creation        |
| `MsgCancelUnbondingDelegation` | Owner cancels unbonding and restores delegation |
| `MsgUnjail` (post-call)        | Validator unjailed with owner's live delegation |

### ACTIVE → BOUND

A license moves back to `BOUND` when:

* Owner fully undelegates from the bound validator
* Validator is jailed (JailInterceptor fires)
* Governance revokes the license

<Note>
  Partial undelegation does not change license status. The license remains ACTIVE as long as any delegation with positive token value exists.
</Note>

### BOUND → ISSUED (unbinding)

Triggered by `MsgUnbindLicense`. Requirements:

* No active delegation to the bound validator
* Cooldown period from any prior unbind must have elapsed

After unbinding, a cooldown timer starts. The license cannot be re-bound until the `CooldownPeriod` in the category policy has elapsed.

```bash theme={null}
autheod query license category-policy 1   # SOVEREIGN
autheod query license category-policy 2   # PRIME
autheod query license category-policy 3   # CORE
```

### Any → REVOKED

Triggered only by `MsgRevokeLicense` via governance proposal. For Sovereign revocations, the validator is immediately jailed. For Prime/Core revocations, only same-owner sibling licenses are affected.

### REVOKED → ISSUED

Triggered only by `MsgReinstateLicense` via governance. The owner must complete the full recovery sequence manually:

<Steps>
  <Step title="Governance reinstates">
    `MsgReinstateLicense` → license status: `ISSUED`
  </Step>

  <Step title="Owner binds">
    `MsgBindLicense` → license status: `BOUND`
  </Step>

  <Step title="Operator unjails">
    `MsgUnjail` — JailInterceptor allows because Sovereign license is no longer `REVOKED`
  </Step>

  <Step title="Owner delegates">
    `MsgDelegate` → license status: `ACTIVE`
  </Step>
</Steps>

## Transfer restrictions

Only `ISSUED` licenses can be transferred. The category policy must have `Transferable = true`. Transferring a license does not clear the unbind cooldown timer — the new owner inherits it.

## Edge cases

| Scenario                | Behavior                                                                                                                   |
| ----------------------- | -------------------------------------------------------------------------------------------------------------------------- |
| Double-sign / tombstone | License can get stuck in `BOUND` if validator is tombstoned (cannot be unjailed)                                           |
| Dust shares             | Zero-token shares from repeated slashing are excluded from reward accrual and treated as fully removed during undelegation |
| IBC delegations         | IBC-sourced delegate/undelegate messages do not trigger license transitions                                                |
| Redelegation            | Permanently disabled; cannot trigger license transitions                                                                   |