What happens to a Kaspa transaction output that has no covenant attached?

A Kaspa transaction output with no covenant field is simply not covenant-bound — it behaves like a standard output with no extra spending restrictions. In KIP-0020, the covenant field on every transaction output is optional: when it is absent, the network treats the output as a normal coin that can be spent using only its script rules, just like outputs work today. When the field is present, additional covenant rules kick in. This distinction matters for users and wallet developers because it means existing Kaspa outputs and wallets are unaffected by the covenant system unless they explicitly opt in by including a covenant binding.