incentive: full tokenomics implementation (#260)

Resolves babylonlabs-io/pm#100 This PR implements the leftover issues in the tokenmomics, including - removing BTC timestamping related incentive mechanisms - rewarding all active FPs rather than those who voted (we can do this because of jailing mechanism, and this is in line with Cosmos SDK) The rest of the [tokenomics issue](babylonlabs-io/pm#100) are mostly parameters and benchmarking, which depend on external factors and other engineering efforts.
babylonlabs-io · Nov 13, 2024 · dd4009d · dd4009d
1 parent d4d31e1
commit dd4009d
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Showing 46 changed files with 258 additions and 1,561 deletions.
diff --git a/CHANGELOG.md b/CHANGELOG.md
@@ -58,6 +58,8 @@ in checkpointing module
 
 ### State Machine Breaking
 
+* [#260](https://github.com/babylonlabs-io/babylon/pull/260) Finish tokenomics
+implementation
 * [#254](https://github.com/babylonlabs-io/babylon/pull/254) Avoid constant
 bech-32 decoding in power table
 

diff --git a/app/app.go b/app/app.go
@@ -346,7 +346,7 @@ func NewBabylonApp(
 	app.ModuleManager.SetOrderBeginBlockers(
 		upgradetypes.ModuleName, capabilitytypes.ModuleName,
 		// NOTE: incentive module's BeginBlock has to be after mint but before distribution
-		// so that it can intercept a part of new inflation to reward BTC staking/timestamping stakeholders
+		// so that it can intercept a part of new inflation to reward BTC staking stakeholders
 		minttypes.ModuleName, incentivetypes.ModuleName, distrtypes.ModuleName,
 		slashingtypes.ModuleName,
 		evidencetypes.ModuleName, stakingtypes.ModuleName,

diff --git a/app/include_upgrade_mainnet.go b/app/include_upgrade_mainnet.go
@@ -13,6 +13,7 @@ func init() {
 	Upgrades = []upgrades.Upgrade{v1.CreateUpgrade(v1.UpgradeDataString{
 		BtcStakingParamStr:    mainnet.BtcStakingParamStr,
 		FinalityParamStr:      mainnet.FinalityParamStr,
+		IncentiveParamStr:     mainnet.IncentiveParamStr,
 		CosmWasmParamStr:      mainnet.CosmWasmParamStr,
 		NewBtcHeadersStr:      mainnet.NewBtcHeadersStr,
 		TokensDistributionStr: mainnet.TokensDistributionStr,

diff --git a/app/include_upgrade_testnet.go b/app/include_upgrade_testnet.go
@@ -14,6 +14,7 @@ func init() {
 	Upgrades = []upgrades.Upgrade{v1.CreateUpgrade(v1.UpgradeDataString{
 		BtcStakingParamStr:    testnet.BtcStakingParamStr,
 		FinalityParamStr:      testnet.FinalityParamStr,
+		IncentiveParamStr:     testnet.IncentiveParamStr,
 		CosmWasmParamStr:      testnet.CosmWasmParamStr,
 		NewBtcHeadersStr:      testnet.NewBtcHeadersStr,
 		TokensDistributionStr: testnet.TokensDistributionStr,

diff --git a/app/upgrades/v1/mainnet/incentive.go b/app/upgrades/v1/mainnet/incentive.go
@@ -0,0 +1,5 @@
+package mainnet
+
+const IncentiveParamStr = `{
+  "btc_staking_portion": "0.6"
+}`
diff --git a/app/upgrades/v1/testnet/incentive.go b/app/upgrades/v1/testnet/incentive.go
@@ -0,0 +1,5 @@
+package testnet
+
+const IncentiveParamStr = `{
+  "btc_staking_portion": "0.6"
+}`
diff --git a/app/upgrades/v1/types.go b/app/upgrades/v1/types.go
@@ -3,6 +3,7 @@ package v1
 type UpgradeDataString struct {
 	BtcStakingParamStr    string
 	FinalityParamStr      string
+	IncentiveParamStr     string
 	CosmWasmParamStr      string
 	NewBtcHeadersStr      string
 	TokensDistributionStr string

diff --git a/app/upgrades/v1/upgrades.go b/app/upgrades/v1/upgrades.go
@@ -33,6 +33,8 @@ import (
 	btcstktypes "github.com/babylonlabs-io/babylon/x/btcstaking/types"
 	finalitykeeper "github.com/babylonlabs-io/babylon/x/finality/keeper"
 	finalitytypes "github.com/babylonlabs-io/babylon/x/finality/types"
+	incentivekeeper "github.com/babylonlabs-io/babylon/x/incentive/keeper"
+	incentivetypes "github.com/babylonlabs-io/babylon/x/incentive/types"
 	mintkeeper "github.com/babylonlabs-io/babylon/x/mint/keeper"
 	minttypes "github.com/babylonlabs-io/babylon/x/mint/types"
 )
@@ -82,9 +84,11 @@ func CreateUpgradeHandler(upgradeDataStr UpgradeDataString) upgrades.UpgradeHand
 				keepers.EncCfg.Codec,
 				&keepers.BTCStakingKeeper,
 				&keepers.FinalityKeeper,
+				&keepers.IncentiveKeeper,
 				&keepers.WasmKeeper,
 				upgradeDataStr.BtcStakingParamStr,
 				upgradeDataStr.FinalityParamStr,
+				upgradeDataStr.IncentiveParamStr,
 				upgradeDataStr.CosmWasmParamStr,
 			)
 			if err != nil {
@@ -130,8 +134,9 @@ func upgradeParameters(
 	cdc codec.Codec,
 	btcK *btcstkkeeper.Keeper,
 	finK *finalitykeeper.Keeper,
+	iK *incentivekeeper.Keeper,
 	wasmK *wasmkeeper.Keeper,
-	btcStakingParam, finalityParam, wasmParam string,
+	btcStakingParam, finalityParam, incentiveParam, wasmParam string,
 ) error {
 	// Upgrade the staking parameters as first, as other upgrades depend on it.
 	if err := upgradeBtcStakingParameters(ctx, cdc, btcK, btcStakingParam); err != nil {
@@ -140,10 +145,27 @@ func upgradeParameters(
 	if err := upgradeFinalityParameters(ctx, cdc, finK, finalityParam); err != nil {
 		return err
 	}
+	if err := upgradeIncentiveParameters(ctx, cdc, iK, incentiveParam); err != nil {
+		return err
+	}
 
 	return upgradeCosmWasmParameters(ctx, cdc, wasmK, wasmParam)
 }
 
+func upgradeIncentiveParameters(
+	ctx sdk.Context,
+	cdc codec.Codec,
+	k *incentivekeeper.Keeper,
+	incentiveParam string,
+) error {
+	params, err := LoadIncentiveParamsFromData(cdc, incentiveParam)
+	if err != nil {
+		return err
+	}
+
+	return k.SetParams(ctx, params)
+}
+
 func upgradeCosmWasmParameters(
 	ctx sdk.Context,
 	cdc codec.Codec,
@@ -264,6 +286,18 @@ func LoadFinalityParamsFromData(cdc codec.Codec, data string) (finalitytypes.Par
 	return params, nil
 }
 
+func LoadIncentiveParamsFromData(cdc codec.Codec, data string) (incentivetypes.Params, error) {
+	buff := bytes.NewBufferString(data)
+
+	var params incentivetypes.Params
+	err := cdc.UnmarshalJSON(buff.Bytes(), &params)
+	if err != nil {
+		return incentivetypes.Params{}, err
+	}
+
+	return params, nil
+}
+
 func LoadCosmWasmParamsFromData(cdc codec.Codec, data string) (wasmtypes.Params, error) {
 	buff := bytes.NewBufferString(data)
 

diff --git a/app/upgrades/v1/upgrades_test.go b/app/upgrades/v1/upgrades_test.go
@@ -47,13 +47,15 @@ var (
 	UpgradeV1DataTestnet = v1.UpgradeDataString{
 		BtcStakingParamStr:    testnetdata.BtcStakingParamStr,
 		FinalityParamStr:      testnetdata.FinalityParamStr,
+		IncentiveParamStr:     testnetdata.IncentiveParamStr,
 		CosmWasmParamStr:      testnetdata.CosmWasmParamStr,
 		NewBtcHeadersStr:      testnetdata.NewBtcHeadersStr,
 		TokensDistributionStr: testnetdata.TokensDistributionStr,
 	}
 	UpgradeV1DataMainnet = v1.UpgradeDataString{
 		BtcStakingParamStr:    mainnetdata.BtcStakingParamStr,
 		FinalityParamStr:      mainnetdata.FinalityParamStr,
+		IncentiveParamStr:     mainnetdata.IncentiveParamStr,
 		CosmWasmParamStr:      mainnetdata.CosmWasmParamStr,
 		NewBtcHeadersStr:      mainnetdata.NewBtcHeadersStr,
 		TokensDistributionStr: mainnetdata.TokensDistributionStr,
@@ -258,6 +260,12 @@ func (s *UpgradeTestSuite) PostUpgrade() {
 	newHeadersLen := len(allBtcHeaders)
 	s.Equal(newHeadersLen, s.btcHeadersLenPreUpgrade+lenHeadersInserted)
 
+	// ensure the incentive params were set as expected
+	incentiveParamsFromUpgrade, err := v1.LoadIncentiveParamsFromData(s.app.AppCodec(), s.upgradeDataStr.IncentiveParamStr)
+	s.NoError(err)
+	incentiveParams := s.app.IncentiveKeeper.GetParams(s.ctx)
+	s.EqualValues(incentiveParamsFromUpgrade, incentiveParams)
+
 	// ensure the headers were inserted as expected
 	for i, btcHeaderInserted := range btcHeadersInserted {
 		btcHeaderInState := allBtcHeaders[s.btcHeadersLenPreUpgrade+i]

diff --git a/proto/babylon/finality/v1/finality.proto b/proto/babylon/finality/v1/finality.proto
@@ -12,9 +12,9 @@ import "google/protobuf/timestamp.proto";
 // and their BTC delegations at a height
 message VotingPowerDistCache {
     option (gogoproto.goproto_getters) = false;
-    // total_sat is the total amount of bonded BTC stake (in Satoshi) of all the finality providers
+    // total_voting_power is the total voting power of all (active) finality providers
     // in the cache
-    uint64 total_bonded_sat = 1;
+    uint64 total_voting_power = 1;
     // finality_providers is a list of finality providers' voting power information
     repeated FinalityProviderDistInfo finality_providers = 2;
     // num_active_fps is the number of finality providers that have active BTC

diff --git a/proto/babylon/incentive/incentive.proto b/proto/babylon/incentive/incentive.proto
@@ -17,7 +17,7 @@ message Gauge {
     ];
 }
 
-// RewardGauge is an object that stores rewards distributed to a BTC staking/timestamping stakeholder
+// RewardGauge is an object that stores rewards distributed to a BTC staking stakeholder
 // code adapted from https://github.com/osmosis-labs/osmosis/blob/v18.0.0/proto/osmosis/incentives/gauge.proto
 message RewardGauge {
     // coins are coins that have been in the gauge

diff --git a/proto/babylon/incentive/params.proto b/proto/babylon/incentive/params.proto
@@ -13,22 +13,10 @@ option go_package = "github.com/babylonlabs-io/babylon/x/incentive/types";
 message Params {
     option (gogoproto.goproto_stringer) = false;
 
-    // submitter_portion is the portion of rewards that goes to submitter
-    string submitter_portion = 1 [
-        (cosmos_proto.scalar)  = "cosmos.Dec",
-        (gogoproto.customtype) = "cosmossdk.io/math.LegacyDec",
-        (gogoproto.nullable)   = false
-    ];
-    // reporter_portion is the portion of rewards that goes to reporter
-    string reporter_portion = 2 [
-        (cosmos_proto.scalar)  = "cosmos.Dec",
-        (gogoproto.customtype) = "cosmossdk.io/math.LegacyDec",
-        (gogoproto.nullable)   = false
-    ];
     // btc_staking_portion is the portion of rewards that goes to Finality Providers/delegations
     // NOTE: the portion of each Finality Provider/delegation is calculated by using its voting
     // power and finality provider's commission
-    string btc_staking_portion = 3 [
+    string btc_staking_portion = 1 [
         (cosmos_proto.scalar)  = "cosmos.Dec",
         (gogoproto.customtype) = "cosmossdk.io/math.LegacyDec",
         (gogoproto.nullable)   = false

diff --git a/proto/babylon/incentive/query.proto b/proto/babylon/incentive/query.proto
@@ -23,10 +23,6 @@ service Query {
     rpc BTCStakingGauge(QueryBTCStakingGaugeRequest) returns (QueryBTCStakingGaugeResponse) {
         option (google.api.http).get = "/babylon/incentive/btc_staking_gauge/{height}";
     }
-    // BTCTimestampingGauge queries the BTC timestamping gauge of a given epoch
-    rpc BTCTimestampingGauge(QueryBTCTimestampingGaugeRequest) returns (QueryBTCTimestampingGaugeResponse) {
-        option (google.api.http).get = "/babylon/incentive/btc_timestamping_gauge/{epoch_num}";
-    }
 }
 
 // QueryParamsRequest is request type for the Query/Params RPC method.
@@ -44,7 +40,7 @@ message QueryRewardGaugesRequest {
     string address = 1;
 }
 
-// RewardGaugesResponse is an object that stores rewards distributed to a BTC staking/timestamping stakeholder
+// RewardGaugesResponse is an object that stores rewards distributed to a BTC staking stakeholder
 message RewardGaugesResponse {
     // coins are coins that have been in the gauge
     // Can have multiple coin denoms
@@ -72,6 +68,7 @@ message QueryBTCStakingGaugeRequest {
     uint64 height = 1;
 }
 
+// BTCStakingGaugeResponse is response type for the Query/BTCStakingGauge RPC method.
 message BTCStakingGaugeResponse {
     // coins that have been in the gauge
     // can have multiple coin denoms
@@ -82,30 +79,8 @@ message BTCStakingGaugeResponse {
 
 }
 
-message BTCTimestampingGaugeResponse {
-    // coins that have been in the gauge
-    // can have multiple coin denoms
-    repeated cosmos.base.v1beta1.Coin coins = 1 [
-        (gogoproto.nullable) = false,
-        (gogoproto.castrepeated) = "github.com/cosmos/cosmos-sdk/types.Coins"
-    ];
-
-}
-
 // QueryBTCStakingGaugeResponse is response type for the Query/BTCStakingGauge RPC method.
 message QueryBTCStakingGaugeResponse {
     // gauge is the BTC staking gauge at the queried height 
     BTCStakingGaugeResponse gauge = 1;
 }
-
-// QueryBTCTimestampingGaugeRequest is request type for the Query/BTCTimestampingGauge RPC method.
-message QueryBTCTimestampingGaugeRequest {
-    // epoch_num is the queried epoch number
-    uint64 epoch_num = 1;
-}
-
-// QueryBTCTimestampingGaugeResponse is response type for the Query/BTCTimestampingGauge RPC method.
-message QueryBTCTimestampingGaugeResponse {
-    // gauge is the BTC timestamping gauge at the queried epoch 
-    BTCTimestampingGaugeResponse gauge = 1;
-}
diff --git a/proto/babylon/incentive/tx.proto b/proto/babylon/incentive/tx.proto
@@ -23,7 +23,7 @@ service Msg {
 // MsgWithdrawReward defines a message for withdrawing reward of a stakeholder.
 message MsgWithdrawReward {
     option (cosmos.msg.v1.signer) = "address";
-    // {submitter, reporter, finality_provider, btc_delegation}
+    // {finality_provider, btc_delegation}
     string type = 1;
     // address is the address of the stakeholder in bech32 string
     // signer of this msg has to be this address