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Self modifying part is through skills:

Assistant -> Skill -> Script.

As you keep modifying or adding capabilities, it’s the script that gets modified. Atleast that’s how OpenClaw works, I’m not sure how Moltis implements self-modifying part.

If you run it with a cheaper model or just once in a while, it will write sometjing unexpected into its config json, restart and crash. Happens every few days. I learned to back up the config the hard way

This is what I'm interested in knowing. Just how much can it modify if it's a static binary? Can it modify it's own agents.md etc?

It can modify everything, because while it's a single binary and that makes it easy for installation, there are things stored outside that binary. The memories, the skills, the config etc. But you can do everything from the UI and you don't need to bother, it will be all automatic.