What is the purpose of /system/license/generate-new-id

It seems that after issuing this command, you lose your license and the device can NOT be associated with new mikrotik account (with neither trial nor paid license).
The CHR router is basically stuck forever in free mode.
Am I missing how this command may be useful? Seems like a dangerous tool without any purpose to me.

The ID of each device is unique if you want for some purpose to change it you can do it
and to link the device with a new license you can go to your Mikrotik account and use that ID to get a license
that is for router boards
that is helpfull if you have an old mikrotik router with a license and you want to move its license to a new one without buying a license or if you want to move it to a 86× virtual router on a server or pc or whatever.

It would be a nice feature to show a warning message about what happens when you generate another license-ID — where a simple text message warns you what will happen to an existing license & how to move a license from one CHR to another CHR , then ask “do you really wish to continue ?”

North Idaho Tom Jones

But what is the problem on this case?
The user for sure have made a snapshot before do it?
No?

It might be used for example when cloning and the new instance need a unique id. Check out “Cloud Hosted Router (CHR)