diff --git a/docs/architecture.md b/docs/architecture.md
index ec58c0ca..adafa90e 100644
--- a/docs/architecture.md
+++ b/docs/architecture.md
@@ -548,11 +548,17 @@ bd mol burn gt-abc123.exec-001           # Discard wisps without digest
 **Wisp storage:**
 
 Wisps are stored in a per-rig ephemeral database:
-- `<rig>/.beads-ephemeral/` - Separate from permanent beads
+- `<rig>/.beads-ephemeral/` - Separate from permanent beads, **gitignored**
 - Fast writes, no sync overhead
 - Auto-cleaned on squash/burn
 - Digests write to permanent beads
 
+**See**: [wisp-architecture.md](wisp-architecture.md) for full specification including:
+- Canonical storage locations
+- Role assignments (which agents use wisps)
+- Patrol pattern implementation
+- Beads implementation requirements
+
 **Patrols use wisps:**
 
 Patrol agents (long-running monitors) execute in infinite wisp loops:
diff --git a/docs/wisp-architecture.md b/docs/wisp-architecture.md
new file mode 100644
index 00000000..b15474dd
--- /dev/null
+++ b/docs/wisp-architecture.md
@@ -0,0 +1,254 @@
+# Wisp Architecture: Ephemeral Molecule Storage
+
+> Status: Design Spec v1 - December 2024
+
+## Overview
+
+**Wisps** are ephemeral molecule execution traces - the "steam" in Gas Town's engine
+metaphor. This document specifies where wisps are stored, how they're managed, and
+which roles use them.
+
+## Core Principle
+
+**Wisps are local operational state, not project history.**
+
+| Artifact | Storage | Git Tracked | Purpose |
+|----------|---------|-------------|---------|
+| Issues | `.beads/issues.jsonl` | Yes | Permanent project history |
+| Wisps | `.beads-ephemeral/issues.jsonl` | **No** | Transient execution traces |
+| Digests | `.beads/issues.jsonl` | Yes | Compressed summaries of squashed wisps |
+
+## Storage Architecture
+
+### Directory Structure
+
+```
+~/gt/gastown/
+├── mayor/rig/                    # Mayor's canonical clone
+│   ├── .beads/                   # CANONICAL rig beads (versioned)
+│   │   ├── issues.jsonl          # Permanent issues + digests
+│   │   ├── config.yaml
+│   │   └── .gitignore            # Excludes .beads-ephemeral
+│   │
+│   └── .beads-ephemeral/         # GITIGNORED - local wisps
+│       └── issues.jsonl          # In-progress ephemeral molecules
+│
+├── refinery/rig/                 # Refinery's clone
+│   ├── .beads/                   # Inherits from mayor/rig
+│   └── .beads-ephemeral/         # Refinery's local wisps
+│
+├── witness/                      # Witness (no clone needed)
+│   └── .beads-ephemeral/         # Witness's local wisps
+│
+└── polecats/<name>/              # Polecat worktrees
+    ├── .beads/                   # Inherits from mayor/rig
+    └── .beads-ephemeral/         # Polecat's local wisps (if using wisps)
+```
+
+### Key Points
+
+1. **`.beads-ephemeral/` is gitignored** - Never synced, never versioned
+2. **Each execution context has its own ephemeral store** - Process isolation
+3. **Digests go to canonical `.beads/`** - Permanent record after squash
+4. **Wisps are deleted after squash/burn** - No accumulation
+
+### Gitignore Entry
+
+Add to `.beads/.gitignore`:
+```
+.beads-ephemeral/
+```
+
+Or add to rig-level `.gitignore`:
+```
+**/.beads-ephemeral/
+```
+
+## Wisp Lifecycle
+
+```
+bd mol bond <proto> --ephemeral
+         │
+         ▼
+┌─────────────────────────┐
+│  .beads-ephemeral/      │
+│  └── issues.jsonl       │  ← Wisp created here
+│      └── {id, ephemeral: true, ...}
+└────────────┬────────────┘
+             │
+    ┌────────┴────────┐
+    ▼                 ▼
+bd mol burn      bd mol squash
+    │                 │
+    ▼                 ▼
+(deleted)        ┌─────────────────────────┐
+                 │  .beads/issues.jsonl    │
+                 │  └── {id, type: digest} │  ← Digest here
+                 └─────────────────────────┘
+```
+
+## Role Assignments
+
+### Roles That Use Wisps
+
+These roles have repetitive/cyclic work that would accumulate without wisps:
+
+| Role | Molecule | Storage Location | Squash Frequency |
+|------|----------|------------------|------------------|
+| **Deacon** | mol-deacon-patrol | mayor/rig/.beads-ephemeral/ | Per cycle |
+| **Witness** | mol-witness-patrol | witness/.beads-ephemeral/ | Per cycle |
+| **Refinery** | mol-refinery-cycle | refinery/rig/.beads-ephemeral/ | Per cycle |
+
+### Roles That Use Regular Molecules
+
+These roles do discrete work with audit value:
+
+| Role | Molecule | Storage | Reason |
+|------|----------|---------|--------|
+| **Polecat** | mol-polecat-work | .beads/issues.jsonl | Each assignment is a deliverable |
+| **Mayor** | (ad-hoc) | .beads/issues.jsonl | Coordination has history value |
+| **Crew** | (ad-hoc) | .beads/issues.jsonl | User work needs audit trail |
+
+### Decision Matrix
+
+| Question | Answer | Use |
+|----------|--------|-----|
+| Is this work repetitive/cyclic? | Yes | Wisp |
+| Does the outcome matter more than the trace? | Yes | Wisp |
+| Would this accumulate unbounded over time? | Yes | Wisp |
+| Is this a discrete deliverable? | Yes | Regular Mol |
+| Might I need to reference this later? | Yes | Regular Mol |
+| Does this represent user-requested work? | Yes | Regular Mol |
+
+## Patrol Pattern
+
+Every role using wisps must implement this pattern:
+
+```go
+func patrolCycle() {
+    // 1. Bond ephemeral molecule
+    mol := bdMolBond("mol-<role>-patrol", "--ephemeral")
+
+    // 2. Execute cycle steps
+    for _, step := range mol.Steps {
+        executeStep(step)
+        bdMolStep(step.ID, "--complete")
+    }
+
+    // 3. Generate summary (agent cognition)
+    summary := generateCycleSummary()
+
+    // 4. Squash - REQUIRED (this is the cleanup)
+    bdMolSquash(mol.ID, "--summary", summary)
+    // Wisp deleted from .beads-ephemeral/
+    // Digest created in .beads/issues.jsonl
+
+    // 5. Sleep until next cycle
+    time.Sleep(patrolInterval)
+}
+```
+
+**Critical**: Without step 4 (squash), wisps become technical debt.
+
+## Beads Implementation Requirements
+
+For this architecture to work, Beads needs:
+
+### New Commands
+
+```bash
+# Bond with ephemeral flag
+bd mol bond <proto> --ephemeral
+# Creates in .beads-ephemeral/ instead of .beads/
+
+# List ephemeral molecules
+bd wisp list
+# Shows in-progress wisps
+
+# Garbage collect orphaned wisps
+bd wisp gc
+# Cleans up wisps from crashed processes
+```
+
+### Storage Behavior
+
+| Command | With `--ephemeral` | Without |
+|---------|-------------------|---------|
+| `bd mol bond` | Creates in `.beads-ephemeral/` | Creates in `.beads/` |
+| `bd mol step` | Updates in ephemeral | Updates in permanent |
+| `bd mol squash` | Deletes from ephemeral, creates digest in permanent | Creates digest in permanent |
+| `bd mol burn` | Deletes from ephemeral | Marks abandoned in permanent |
+
+### Config
+
+```yaml
+# .beads/config.yaml
+ephemeral:
+  enabled: true
+  directory: ../.beads-ephemeral  # Relative to .beads/
+  auto_gc: true                    # Clean orphans on bd init
+```
+
+## Crash Recovery
+
+If a patrol crashes mid-cycle:
+
+1. **Wisp persists in `.beads-ephemeral/`** - Provides recovery breadcrumb
+2. **On restart, agent can:**
+   - Resume from last step (if step tracking is granular)
+   - Or burn and start fresh (simpler for patrol loops)
+3. **`bd wisp gc` cleans orphans** - Wisps older than threshold with no active process
+
+### Orphan Detection
+
+A wisp is orphaned if:
+- `process_id` field exists and process is dead
+- OR `updated_at` is older than threshold (e.g., 1 hour)
+- AND molecule is not complete
+
+## Digest Format
+
+When a wisp is squashed, the digest captures the outcome:
+
+```json
+{
+  "id": "gt-xyz.digest-001",
+  "type": "digest",
+  "title": "Deacon patrol cycle @ 2024-12-21T10:30:00Z",
+  "description": "Checked 3 witnesses, 2 refineries. All healthy. Processed 5 mail items.",
+  "parent": "gt-xyz",
+  "squashed_from": "gt-xyz.wisp-001",
+  "created_at": "2024-12-21T10:32:00Z"
+}
+```
+
+Digests are queryable:
+```bash
+bd list --type=digest --parent=gt-deacon-patrol
+# Shows all patrol cycle summaries
+```
+
+## Migration Path
+
+For existing Gas Town installations:
+
+1. **Add `.beads-ephemeral/` to gitignore** (immediate)
+2. **Update patrol runners to use `--ephemeral`** (as patched)
+3. **No migration of existing data** - Fresh start for ephemeral storage
+
+## Open Questions
+
+1. **Digest retention**: Should old digests be pruned? How old?
+2. **Wisp schema**: Do wisps need additional fields (process_id, host, etc.)?
+3. **Cross-process visibility**: Should `bd wisp list` show all wisps or just current process?
+
+## Related Documents
+
+- [architecture.md](architecture.md) - Overall Gas Town architecture
+- [patrol-system-design.md](../../../docs/patrol-system-design.md) - Patrol system design
+- [molecules.md](molecules.md) - Molecule system details
+
+## Implementation Tracking
+
+- **Beads**: bd-kwjh (Wisp storage: ephemeral molecule tracking)
+- **Gas Town**: gt-3x0z.9 (mol-deacon-patrol uses ephemeral)