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mainnet's mchain.json asked for 7-of-10 while mainnet genesis declares five validators, and localnet asked for 3-of-5 with three. Nothing read those fields before, so the mismatch was inert; now that the policy is authoritative it would fail closed forever — RunKeygen refuses a policy needing more parties than the committee has, so no custody key could ever be generated. Policies now match the validator set each network actually has: 3-of-5 on mainnet/testnet/devnet, 2-of-3 on localnet. Both keep 2K > N, so neither admits two disjoint quorums. Co-authored-by: Hanzo Dev <dev@hanzo.ai>