x/incentives v2: Validator incentives (#320)

* Add validator distribution fields to incentives Params

* Fix help for a cork-result commands

* WIP - First attempt at validator incentives allocation

* Implement validator rewards in BeginBlocker

* Fix validator incentives bug revealed by tests

* Unit and integration tests

* Fix linter issues

* Param name change for clarity. Add event for total val incentive reward per block

.github/workflows/integration-tests.yml

@@ -125,6 +125,7 @@ jobs:
           "Auction",
           "CellarFees",
           "Incentives",
+          "ValidatorIncentives",
           "Pubsub",
           "Addresses",
         ]

Makefile

@@ -388,6 +388,9 @@ e2e_cellarfees_test: e2e_clean_slate
 e2e_incentives_test: e2e_clean_slate
 	@E2E_SKIP_CLEANUP=true integration_tests/integration_tests.test -test.failfast -test.v -test.run IntegrationTestSuite -testify.m TestIncentives || make -s fail
 
+e2e_validator_incentives_test: e2e_clean_slate
+	@E2E_SKIP_CLEANUP=true integration_tests/integration_tests.test -test.failfast -test.v -test.run IntegrationTestSuite -testify.m TestValidatorIncentives || make -s fail
+
 e2e_pubsub_test: e2e_clean_slate
 	@E2E_SKIP_CLEANUP=true integration_tests/integration_tests.test -test.failfast -test.v -test.run IntegrationTestSuite -testify.m TestPubsub || make -s fail
 

app/app.go

@@ -520,11 +520,7 @@ func NewSommelierApp(
 	)
 
 	app.IncentivesKeeper = incentiveskeeper.NewKeeper(
-		appCodec, keys[incentivestypes.StoreKey], app.GetSubspace(incentivestypes.ModuleName), app.DistrKeeper, app.BankKeeper, app.MintKeeper,
-	)
-
-	app.IncentivesKeeper = incentiveskeeper.NewKeeper(
-		appCodec, keys[incentivestypes.StoreKey], app.GetSubspace(incentivestypes.ModuleName), app.DistrKeeper, app.BankKeeper, app.MintKeeper,
+		appCodec, keys[incentivestypes.StoreKey], app.GetSubspace(incentivestypes.ModuleName), app.DistrKeeper, app.BankKeeper, app.MintKeeper, app.StakingKeeper,
 	)
 
 	app.GravityKeeper = *app.GravityKeeper.SetHooks(

integration_tests/genesis.go

@@ -12,6 +12,8 @@ import (
 	banktypes "github.com/cosmos/cosmos-sdk/x/bank/types"
 	"github.com/cosmos/cosmos-sdk/x/genutil"
 	genutiltypes "github.com/cosmos/cosmos-sdk/x/genutil/types"
+	"github.com/peggyjv/sommelier/v7/app/params"
+	incentivestypes "github.com/peggyjv/sommelier/v7/x/incentives/types"
 )
 
 func getGenDoc(path string) (*tmtypes.GenesisDoc, error) {
@@ -108,3 +110,17 @@ func addGenesisAccount(path, moniker, amountStr string, accAddr sdk.AccAddress)
 	genDoc.AppState = appStateJSON
 	return genutil.ExportGenesisFile(genDoc, genFile)
 }
+
+func (s *IntegrationTestSuite) setIncentivesGenState(appGenState map[string]json.RawMessage) error {
+	incentivesGenState := incentivestypes.DefaultGenesisState()
+	err := cdc.UnmarshalJSON(appGenState[incentivestypes.ModuleName], &incentivesGenState)
+	if err != nil {
+		return fmt.Errorf("failed to unmarshal incentives genesis state: %w", err)
+	}
+
+	incentivesGenState.Params.ValidatorIncentivesCutoffHeight = 0
+	incentivesGenState.Params.ValidatorMaxDistributionPerBlock = sdk.NewCoin(params.BaseCoinUnit, sdk.NewInt(0))
+
+	appGenState[incentivestypes.ModuleName] = cdc.MustMarshalJSON(&incentivesGenState)
+	return nil
+}

integration_tests/incentives_test.go

@@ -241,3 +241,249 @@ func (s *IntegrationTestSuite) getRewardAmountAndHeight(ctx context.Context, dis
 
 	return amount, height
 }
+
+func (s *IntegrationTestSuite) TestValidatorIncentives() {
+	validator := s.chain.validators[0]
+	proposer := s.chain.proposer
+	proposerCtx, err := s.chain.clientContext("tcp://localhost:26657", proposer.keyring, "proposer", proposer.address())
+	s.Require().NoError(err)
+	orch := s.chain.orchestrators[0]
+	orchClientCtx, err := s.chain.clientContext("tcp://localhost:26657", orch.keyring, "orch", orch.address())
+	s.Require().NoError(err)
+	ctx := context.Background()
+
+	s.T().Log("Getting the initial community pool balance")
+	queryClient := disttypes.NewQueryClient(proposerCtx)
+	queryRes, err := queryClient.CommunityPool(ctx, &disttypes.QueryCommunityPoolRequest{})
+	s.Require().NoError(err)
+	s.T().Logf("Initial community pool balance: %s", queryRes.Pool.String())
+	initialCommunityPool := queryRes.Pool
+
+	// Wait for outstanding rewards to equal 4000000usomm. Current theory is these initial rewards come from
+	// the genesis delegation tx fees.
+	s.T().Log("Waiting for outstanding rewards to equal 4000000usomm")
+	initialRewards := disttypes.ValidatorOutstandingRewards{
+		Rewards: sdk.DecCoins{
+			sdk.DecCoin{
+				Denom:  params.BaseCoinUnit,
+				Amount: sdk.NewDec(4000000),
+			},
+		},
+	}
+	s.Require().Eventually(func() bool {
+		rewards, err := s.getValidatorOutstandingRewards(validator)
+		s.Require().NoError(err)
+		return rewards.Rewards.AmountOf(params.BaseCoinUnit).Equal(initialRewards.Rewards.AmountOf(params.BaseCoinUnit))
+	}, time.Second*30, time.Second*1, "outstanding rewards did not reach 4000000usomm")
+
+	// Submit proposal to enable validator incentives
+	s.T().Log("Submitting proposal to enable validator incentives")
+	cutoffHeight := 100
+	proposal := paramsproposal.ParameterChangeProposal{
+		Title:       "Enable validator incentives",
+		Description: "Enable validator incentives",
+		Changes: []paramsproposal.ParamChange{
+			{
+				Subspace: "incentives",
+				Key:      "ValidatorIncentivesCutoffHeight",
+				Value:    fmt.Sprintf("\"%d\"", cutoffHeight),
+			},
+			{
+				Subspace: "incentives",
+				Key:      "ValidatorMaxDistributionPerBlock",
+				Value:    fmt.Sprintf("{\"denom\":\"%s\",\"amount\":\"%d\"}", params.BaseCoinUnit, 1000000),
+			},
+		},
+	}
+
+	proposalMsg, err := govtypesv1beta1.NewMsgSubmitProposal(
+		&proposal,
+		sdk.Coins{
+			{
+				Denom:  testDenom,
+				Amount: stakeAmount.Quo(sdk.NewInt(2)),
+			},
+		},
+		proposer.address(),
+	)
+	s.Require().NoError(err)
+	submitProposalResponse, err := s.chain.sendMsgs(*proposerCtx, proposalMsg)
+	s.Require().NoError(err)
+	s.Require().Zero(submitProposalResponse.Code, "raw log: %s", submitProposalResponse.RawLog)
+
+	s.T().Log("Checking proposal was submitted correctly")
+	govQueryClient := govtypesv1beta1.NewQueryClient(orchClientCtx)
+	s.Require().Eventually(func() bool {
+		proposalsQueryResponse, err := govQueryClient.Proposals(context.Background(), &govtypesv1beta1.QueryProposalsRequest{})
+		if err != nil {
+			s.T().Logf("error querying proposals: %e", err)
+			return false
+		}
+
+		s.Require().NotEmpty(proposalsQueryResponse.Proposals)
+		s.Require().Equal(uint64(1), proposalsQueryResponse.Proposals[0].ProposalId, "not proposal id 1")
+		s.Require().Equal(govtypesv1beta1.StatusVotingPeriod, proposalsQueryResponse.Proposals[0].Status, "proposal not in voting period")
+
+		return true
+	}, time.Second*30, time.Second*5, "proposal submission was never found")
+
+	s.T().Log("Vote for proposal")
+	for _, val := range s.chain.validators {
+		kr, err := val.keyring()
+		s.Require().NoError(err)
+		localClientCtx, err := s.chain.clientContext("tcp://localhost:26657", &kr, "val", val.address())
+		s.Require().NoError(err)
+
+		voteMsg := govtypesv1beta1.NewMsgVote(val.address(), 1, govtypesv1beta1.OptionYes)
+		voteResponse, err := s.chain.sendMsgs(*localClientCtx, voteMsg)
+		s.Require().NoError(err)
+		s.Require().Zero(voteResponse.Code, "Vote error: %s", voteResponse.RawLog)
+	}
+
+	// Wait for proposal to be approved
+	s.T().Log("Waiting for proposal to be approved")
+	s.Require().Eventually(func() bool {
+		proposalQueryResponse, _ := govQueryClient.Proposal(context.Background(), &govtypesv1beta1.QueryProposalRequest{ProposalId: 1})
+		return govtypesv1beta1.StatusPassed == proposalQueryResponse.Proposal.Status
+	}, time.Second*30, time.Second*5, "proposal was never accepted")
+	s.T().Log("proposal approved!")
+
+	// Wait for a few blocks to pass to allow the validator rewards to increase
+	s.T().Log("Waiting for a few blocks to pass")
+	s.waitForBlocks(10)
+
+	// Get the updated outstanding rewards for the validator
+	s.T().Log("Getting updated validator rewards")
+	currentRewards2, err := s.getValidatorOutstandingRewards(validator)
+	s.Require().NoError(err)
+
+	// Check if the validator's outstanding rewards have increased
+	s.T().Logf("Initial rewards: %s, updated rewards: %s", initialRewards.Rewards, currentRewards2.Rewards)
+	s.Require().True(currentRewards2.Rewards.AmountOf(params.BaseCoinUnit).GT(initialRewards.Rewards.AmountOf(params.BaseCoinUnit)),
+		"Expected validator rewards to increase, got initial: %s, updated: %s", initialRewards.Rewards, currentRewards2.Rewards)
+
+	s.T().Logf("Validator rewards increased from %s to %s", initialRewards.Rewards, currentRewards2.Rewards)
+
+	s.T().Logf("Waiting to see validator rewards cut off at height %d", cutoffHeight)
+	s.waitUntilHeight(int64(cutoffHeight))
+
+	s.T().Log("Getting current validator rewards")
+	currentRewards, err := s.getValidatorOutstandingRewards(validator)
+	s.Require().NoError(err)
+
+	s.T().Logf("Current rewards: %s", currentRewards.Rewards)
+
+	s.T().Log("Waiting for a few blocks to pass")
+	s.waitForBlocks(10)
+
+	s.T().Log("Getting updated validator rewards")
+	currentRewards2, err = s.getValidatorOutstandingRewards(validator)
+	s.Require().NoError(err)
+
+	s.T().Logf("Current rewards: %s", currentRewards2.Rewards)
+	s.Require().Equal(currentRewards.Rewards, currentRewards2.Rewards, "Expected validator rewards to remain constant after cutoff height")
+	s.T().Log("Validator rewards ended!")
+
+	s.T().Log("Getting sum of all validator rewards")
+	totalRewards := sdk.DecCoins{}
+	for _, val := range s.chain.validators {
+		rewards, err := s.getValidatorOutstandingRewards(val)
+		s.Require().NoError(err)
+		totalRewards = totalRewards.Add(rewards.Rewards...)
+	}
+	s.T().Logf("Total rewards: %s", totalRewards)
+
+	s.T().Log("Getting community pool balance")
+	queryRes, err = queryClient.CommunityPool(ctx, &disttypes.QueryCommunityPoolRequest{})
+	s.Require().NoError(err)
+	s.T().Logf("Community pool balance: %s", queryRes.Pool.String())
+
+	// Subtract the initial rewards and the tx fees from the total rewards to get the incentive rewards
+	s.T().Log("Total incentive rewards is current rewards minus initial rewards minus tx fees from the proposal submission and votes")
+	totalIncentiveRewards := totalRewards.Sub(initialRewards.Rewards.MulDec(sdk.NewDec(4))).Sub(sdk.DecCoins{
+		{
+			Denom:  testDenom,
+			Amount: sdk.NewDec(246913560),
+		},
+	}.MulDec(sdk.NewDec(5)))
+	s.T().Logf("Total incentive rewards: %s", totalIncentiveRewards)
+
+	s.T().Log("Checking that the total incentive rewards are equal to the community pool balance")
+	s.T().Logf("Initial community pool: %s, updated community pool: %s", initialCommunityPool, queryRes.Pool)
+	s.Require().Equal(totalIncentiveRewards, initialCommunityPool.Sub(queryRes.Pool), "Expected sum of all validator rewards to be equal to the change in community pool balance")
+}
+
+func (s *IntegrationTestSuite) getValidatorOutstandingRewards(val *validator) (disttypes.ValidatorOutstandingRewards, error) {
+	ctx := context.Background()
+	kb, err := val.keyring()
+	s.Require().NoError(err)
+	clientCtx, err := s.chain.clientContext("tcp://localhost:26657", &kb, "val", val.address())
+	s.Require().NoError(err)
+	queryClient := disttypes.NewQueryClient(clientCtx)
+	resp, err := queryClient.ValidatorOutstandingRewards(
+		ctx,
+		&disttypes.QueryValidatorOutstandingRewardsRequest{
+			ValidatorAddress: val.validatorAddress().String(),
+		},
+	)
+	if err != nil {
+		return disttypes.ValidatorOutstandingRewards{}, err
+	}
+	return resp.Rewards, nil
+}
+
+func (s *IntegrationTestSuite) waitForBlocks(numBlocks int64) error {
+	validator := s.chain.validators[0]
+	kb, err := validator.keyring()
+	s.Require().NoError(err)
+	clientCtx, err := s.chain.clientContext("tcp://localhost:26657", &kb, "val", validator.address())
+	s.Require().NoError(err)
+
+	initialHeight, err := s.getCurrentHeight(clientCtx)
+	s.Require().NoError(err)
+	targetHeight := initialHeight + numBlocks
+
+	for {
+		height, err := s.getCurrentHeight(clientCtx)
+		if err != nil {
+			return err
+		}
+
+		if height >= targetHeight {
+			break
+		}
+
+		time.Sleep(time.Second)
+	}
+
+	return nil
+}
+
+func (s *IntegrationTestSuite) waitUntilHeight(height int64) error {
+	validator := s.chain.validators[0]
+	kb, err := validator.keyring()
+	s.Require().NoError(err)
+	clientCtx, err := s.chain.clientContext("tcp://localhost:26657", &kb, "val", validator.address())
+	s.Require().NoError(err)
+
+	errorsTotal := 0
+	for {
+		if errorsTotal > 5 {
+			return fmt.Errorf("failed to get to height %d: too many errors", height)
+		}
+
+		currentHeight, err := s.getCurrentHeight(clientCtx)
+		if err != nil {
+			errorsTotal++
+			continue
+		}
+
+		if currentHeight >= height {
+			break
+		}
+
+		time.Sleep(time.Second * 3)
+	}
+
+	return nil
+}

integration_tests/setup_test.go

@@ -534,11 +534,8 @@ func (s *IntegrationTestSuite) initGenesis() {
 	s.Require().NoError(err)
 	appGenState[gravitytypes.ModuleName] = bz
 
-	// incentivesGenState := incentivestypes.DefaultGenesisState()
-	// s.Require().NoError(cdc.UnmarshalJSON(appGenState[gravitytypes.ModuleName], &gravityGenState))
-	// bz, err = cdc.MarshalJSON(&incentivesGenState)
-	// s.Require().NoError(err)
-	// appGenState[incentivestypes.ModuleName] = bz
+	// set incentives gen state
+	s.Require().NoError(s.setIncentivesGenState(appGenState))
 
 	// serialize genesis state
 	bz, err = json.MarshalIndent(appGenState, "", "  ")

proto/incentives/v1/genesis.proto

@@ -18,4 +18,12 @@ message Params {
     // IncentivesCutoffHeight defines the block height after which the incentives module will stop sending coins to the distribution module from
     // the community pool
     uint64 incentives_cutoff_height = 2;
+    // ValidatorMaxDistributionPerBlock defines the maximum coins to be sent directly to voters in the last block from the community pool every block. Leftover coins remain in the community pool.
+    cosmos.base.v1beta1.Coin validator_max_distribution_per_block = 3 [(gogoproto.nullable) = false];
+    // ValidatorIncentivesCutoffHeight defines the block height after which the validator incentives will be stopped
+    uint64 validator_incentives_cutoff_height = 4;
+    // ValidatorIncentivesMaxFraction defines the maximum fraction of the validator distribution per block that can be sent to a single validator
+    string validator_incentives_max_fraction = 5 [(gogoproto.customtype) = "github.com/cosmos/cosmos-sdk/types.Dec", (gogoproto.nullable) = false];
+    // ValidatorIncentivesSetSizeLimit defines the max number of validators to apportion the validator distribution per block to
+    uint64 validator_incentives_set_size_limit = 6;
 }

x/axelarcork/client/cli/query.go

@@ -297,7 +297,7 @@ func queryScheduledCorksByID() *cobra.Command {
 
 func queryCorkResult() *cobra.Command {
 	cmd := &cobra.Command{
-		Use:     "cork-result [chain-id] [cork-id]",
+		Use:     "cork-result [cork-id] [chain-id]",
 		Aliases: []string{"cr"},
 		Args:    cobra.ExactArgs(2),
 		Short:   "query cork result from the chain",