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Simple question, but I couldn’t find the answer in the yellow paper.

Is it reset to 0 or is it kept at the latest value before destruction ?

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Ethereum addresses with a codesize > 0 should always have a nonce of zero, as the address it sits at is created deterministically from the transaction that adds the code (creates the contract), and not from a private key. Thus the contract itself can never make transactions and its nonce can never be increased.

Nonces only increase with addresses that can make (sign) transactions

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    Incorrect. Contract addresses start with a nonce of 1 since EIP 160. Additionally the contract nonce is incremented each time it creates another contract (ref: yellow paper). – Chan-Ho Suh Oct 5 '19 at 14:34

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