Dusk Foundation jams when the same asset crosses Phoenix and Moonlight without anyone noticing that posture changed faster than the flow.
The asset clears its first leg quietly. Dusk's Phoenix does what it’s supposed to do. Confidential balance moves. No signal leaks. DuskDS seals the block and moves on.
The next step doesn’t care about any of that.
Moonlight The Dusk Transaction model checks again. Not history. Not intent. What qualifies now. Identity posture. Scope. Whether the credential still binds to the rule set this contract enforces. It’s narrower than what the sender assumed.
Nothing advances.
The value didn’t leave the system. Ownership isn’t disputed. The asset isn’t restricted in general. It just doesn’t qualify here, under this execution context, at this moment. The protocol doesn’t interpolate between the two models to help.
From the outside, everything else keeps working. Blocks finalize. Other transfers clear. There’s no network story to lean on. One path stalls while the rest of the chain ignores it.
That’s where time gets wasted.
People look for congestion that isn’t there. They check validator health because that’s usually the culprit. They assume the boundary is cosmetic because the asset already moved once today.
It wasn’t cosmetic.
Phoenix didn’t promise Moonlight eligibility. Moonlight doesn’t inherit confidence from Phoenix history. The chain treats them as separate execution realities because they are. When the asset crossed into identity-aware logic, it crossed into a different burden of proof.
Now the options are all bad.
Back out and rebuild the route. Refresh posture and accept that timing just became part of execution. Widen scope and own the consequences later. Every choice changes what the protocol is willing to ratify, not how fast the UI feels.
There’s no courtesy path.
The asset sits where it last qualified. Not frozen. Not rejected. Just unfinished. And until the posture matches the context again, it stays that way... while everything else on Dusk keeps moving as if nothing happened.
