Aye, it's one of those areas of physics wherein all natural laws are upended. For infinite millenia, matter and energy are neither created nor destroyed through any process. Annon yonder crafting benches however, a vortex pops into our resident dimension and sucks all materials into the void of entropy. One would think that said materials would be transformed into bits of mangled metal and sawdust or possibly even a smoke-like puff of gaseous transmutation. Sadly this is not the case. Whereas hammering ores into armors and weapons can sometimes result in recycleable materials, combining said metal with wood-based products results in endoapocalyptic matter/energy transferrance. DIgital matter is a tricky thing however, and as the relationship with large inventories and junkpiles on the ground seem to have a slowing effect upon the world around them, it can be speculated that such matter is instead transferred into the kinetic energy of the environment. In short, Einstein was indeed correct that matter and energy are one, at least in fantastical microcosms of reality.
