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# Algorand Specifications

An [_asset configuration_](https://specs.algorand.co/ledger/ledger-txn-asset-config) transaction has the following semantics:

- If the [_asset ID_](https://specs.algorand.co/ledger/ledger-txn-asset-config#asset-id) is zero, create a new asset with an ID corresponding to one plus this transaction’s unique counter value. The transaction’s counter value is the transaction counter field from the block header plus the positional index of this transaction in the block (starting from 00).

On asset creation, the [_asset parameters_](https://specs.algorand.co/ledger/ledger-txn-asset-config#asset-parameters) for the created asset are stored in the creator’s account under the newly allocated asset ID. The creating account also allocates space to hold asset units of the newly allocated asset. All units of the newly created asset (i.e., the _total_ specified in the parameters) are held by the creator. When the creator holding is initialized, it ignores the _default frozen_ flag and is always initialized to unfrozen.

- If the [_asset ID_](https://specs.algorand.co/ledger/ledger-txn-asset-config#asset-id) is non-zero, the transaction **MUST** be issued by the _asset manager_ (based on the asset’s current parameters). A zero manager address means no such transaction can be issued.
  - If the [_asset parameters_](https://specs.algorand.co/ledger/ledger-txn-asset-config#asset-parameters) are omitted (the zero value), the asset is destroyed. This is allowed only if the _asset creator_ holds all of the units of that asset (i.e., equal to the _total_ in the parameters).

- If the [_asset parameters_](https://specs.algorand.co/ledger/ledger-txn-asset-config#asset-parameters) are not omitted, any non-zero key in the asset’s current parameters (as stored in the asset creator’s account) is updated to the key specified in the _asset parameters_. This applies to the _manager_, _reserve_, _freeze_, and _clawback_ keys. Once a key is set to zero, it cannot be updated. Other parameters are immutable.

An [_asset transfer_](https://specs.algorand.co/ledger/ledger-txn-asset-transfer) transaction has the following semantics:

- If the [_asset sender_](https://specs.algorand.co/ledger/ledger-txn-asset-transfer#asset-sender) field is non-zero, the transaction **MUST** be issued by the asset’s clawback address, and this transaction can neither allocate nor close out holdings of an asset (i.e., the asset close-to field **MUST NOT** be specified, and the source account **MUST** already have allocated space to store holdings of the asset in question). In this _clawback_ case, freezes **MUST** be bypassed on both the source and destination of this transfer.

- If the [_asset sender_](https://specs.algorand.co/ledger/ledger-txn-asset-transfer#asset-sender) field is zero, the asset sender is assumed to be the transaction’s sender, and freezes **MUST NOT** be bypassed.

- If the [_asset amount_](https://specs.algorand.co/ledger/ledger-txn-asset-transfer#asset-amount) is 00, the transaction allocates space in the sender’s account to store the _asset ID_. The holdings are initialized with a zero number of units of that asset, and the _default frozen_ flag from the asset’s parameters. Space cannot be allocated for asset IDs that have never been created, or that have been destroyed, at the time of space allocation. Space can remain allocated, however, after the asset is destroyed.

- The transaction moves the specified number of units of the asset from the [_asset_sender_](https://specs.algorand.co/ledger/ledger-txn-asset-transfer#asset-sender) to the [_asset receiver_](https://specs.algorand.co/ledger/ledger-txn-asset-transfer#asset-receiver).
  - If either account is frozen, and freezes are not bypassed, the transaction fails to execute.

- If either account has no space allocated to hold units of this asset, the transaction fails to execute.

- If the [_asset sender_](https://specs.algorand.co/ledger/ledger-txn-asset-transfer#asset-sender) has fewer than the specified number of units of that asset, the transaction fails to execute.
- If the [_asset close-to_](https://specs.algorand.co/ledger/ledger-txn-asset-transfer#asset-close-to-address) field is specified, the transaction transfers all remaining units of the asset to the [_close-to address_](https://specs.algorand.co/ledger/ledger-txn-asset-transfer#asset-close-to-address).
  - If the [_close-to address_](https://specs.algorand.co/ledger/ledger-txn-asset-transfer#asset-close-to-address) is not the creator address, then neither the [_asset sender_](https://specs.algorand.co/ledger/ledger-txn-asset-transfer#asset-sender)’s holdings of this asset nor the [_close-to address_](https://specs.algorand.co/ledger/ledger-txn-asset-transfer#asset-close-to-address)’s holdings can be frozen; otherwise, the transaction fails to execute.

- Closing to the _asset creator_ is always allowed, even if the source and/or creator account’s holdings are frozen.

- If the [_asset sender_](https://specs.algorand.co/ledger/ledger-txn-asset-transfer#asset-sender) or [_close-to_address_](https://specs.algorand.co/ledger/ledger-txn-asset-transfer#asset-close-to-address) does not have allocated space for the asset in question, the transaction fails to execute.

- After transferring all outstanding units of the asset, space for the asset is deallocated from the sender account.

An [_asset freeze_](https://specs.algorand.co/ledger/ledger-txn-asset-freeze) transaction has the following semantics:

- If the transaction is not issued by the _freeze address_ in the specified asset’s parameters, the transaction fails to execute.

- If the specified [_asset ID_](https://specs.algorand.co/ledger/ledger-txn-asset-freeze#asset-id) does not exist in the specified account, the transaction fails to execute.

- The [_freeze_](https://specs.algorand.co/ledger/ledger-txn-asset-freeze#frozen-status) flag of the specified asset in the specified account is updated to the [_frozen status_](https://specs.algorand.co/ledger/ledger-txn-asset-freeze#frozen-status) flag value from the freeze transaction.

When an asset transaction allocates space in an account for an asset, whether by creation or opt-in, the sender’s minimum balance requirement is incremented by bminbmin.

When the space is deallocated, whether by asset destruction or asset close-to, the minimum balance requirement of the sender is decremented by bminbmin.