Great question, and thanks for taking the time to dig into the design!

They coexist as separate authorization paths. Regular transfers follow Hive's existing weighted active authority rules, while scoped transfers explicitly reference a grant and must satisfy its limits at the consensus level.

One important distinction: if an operator already has sufficient active authority, they can still execute regular transfers outside the scoped grant. Scoped Authorities don't override or restrict existing active permissions.

That's precisely why I designed this mechanism to give applications scoped permissions instead of unrestricted active authority.

I've also officially submitted my implementation to Hive as a Draft Merge Request, and the CI pipeline has passed. I'd love to hear more technical feedback from witnesses and core developers

https://gitlab.syncad.com/hive/hive/-/merge_requests/2154

Really appreciate you bringing this up, this is exactly the kind of technical discussion I'm hoping to encourage!