Well in the main game all ive been doing is consolidating my credits, On one planet I had been letting energy, armour, all offensive things add up. Well I guess about 2 weeks or so ago I stopped all that. Dropped all prouduction levels except organics to 0. At the time I had about 389mn armour points on it. Today I noticed that the armour points had dropped down to 10, what I would like to know is should that of happened? It hasnt been attacked hasnt gone independant, nothing. If armour degrades it would make sense but I didnt think it did.

Yes, armor degrades if any of your goods, ore or organics drop below 10,000 units.