v1.x backport: add burn tax split logic (#103)

* add burn tax split logic
* add unit test for split tax ante

app/app.go

@@ -96,6 +96,7 @@ import (
 	upgradetypes "github.com/cosmos/cosmos-sdk/x/upgrade/types"
 
 	terraappparams "github.com/classic-terra/core/app/params"
+	v2 "github.com/classic-terra/core/app/upgrades/v2"
 
 	customauth "github.com/classic-terra/core/custom/auth"
 	customante "github.com/classic-terra/core/custom/auth/ante"
@@ -514,6 +515,7 @@ func NewTerraApp(
 	app.mm.RegisterRoutes(app.Router(), app.QueryRouter(), encodingConfig.Amino)
 	app.configurator = module.NewConfigurator(app.appCodec, app.MsgServiceRouter(), app.GRPCQueryRouter())
 	app.mm.RegisterServices(app.configurator)
+	app.setupUpgradeHandlers()
 
 	// create the simulation manager and define the order of the modules for deterministic simulations
 	//
@@ -806,3 +808,10 @@ func initParamsKeeper(appCodec codec.BinaryCodec, legacyAmino *codec.LegacyAmino
 
 	return paramsKeeper
 }
+
+func (app *TerraApp) setupUpgradeHandlers() {
+	app.UpgradeKeeper.SetUpgradeHandler(
+		v2.UpgradeName,
+		v2.CreateV2UpgradeHandler(app.mm, app.configurator),
+	)
+}

app/upgrades/v2/constants.go

@@ -0,0 +1,3 @@
+package v2
+
+const UpgradeName = "v2"

app/upgrades/v2/upgrades.go

@@ -0,0 +1,16 @@
+package v2
+
+import (
+	sdk "github.com/cosmos/cosmos-sdk/types"
+	"github.com/cosmos/cosmos-sdk/types/module"
+	upgradetypes "github.com/cosmos/cosmos-sdk/x/upgrade/types"
+)
+
+func CreateV2UpgradeHandler(
+	mm *module.Manager,
+	cfg module.Configurator,
+) upgradetypes.UpgradeHandler {
+	return func(ctx sdk.Context, _ upgradetypes.Plan, fromVM module.VersionMap) (module.VersionMap, error) {
+		return mm.RunMigrations(ctx, cfg, fromVM)
+	}
+}

custom/auth/ante/ante.go

@@ -8,18 +8,20 @@ import (
 	sdkerrors "github.com/cosmos/cosmos-sdk/types/errors"
 	cosmosante "github.com/cosmos/cosmos-sdk/x/auth/ante"
 	"github.com/cosmos/cosmos-sdk/x/auth/signing"
+	distributionkeeper "github.com/cosmos/cosmos-sdk/x/distribution/keeper"
 )
 
 // HandlerOptions are the options required for constructing a default SDK AnteHandler.
 type HandlerOptions struct {
-	AccountKeeper    cosmosante.AccountKeeper
-	BankKeeper       BankKeeper
-	FeegrantKeeper   cosmosante.FeegrantKeeper
-	OracleKeeper     OracleKeeper
-	TreasuryKeeper   TreasuryKeeper
-	SignModeHandler  signing.SignModeHandler
-	SigGasConsumer   cosmosante.SignatureVerificationGasConsumer
-	IBCChannelKeeper channelkeeper.Keeper
+	AccountKeeper      cosmosante.AccountKeeper
+	BankKeeper         BankKeeper
+	FeegrantKeeper     cosmosante.FeegrantKeeper
+	OracleKeeper       OracleKeeper
+	TreasuryKeeper     TreasuryKeeper
+	SignModeHandler    signing.SignModeHandler
+	SigGasConsumer     cosmosante.SignatureVerificationGasConsumer
+	IBCChannelKeeper   channelkeeper.Keeper
+	DistributionKeeper distributionkeeper.Keeper
 }
 
 // NewAnteHandler returns an AnteHandler that checks and increments sequence
@@ -61,8 +63,8 @@ func NewAnteHandler(options HandlerOptions) (sdk.AnteHandler, error) {
 		cosmosante.NewValidateMemoDecorator(options.AccountKeeper),
 		cosmosante.NewConsumeGasForTxSizeDecorator(options.AccountKeeper),
 		cosmosante.NewDeductFeeDecorator(options.AccountKeeper, options.BankKeeper, options.FeegrantKeeper),
-		NewBurnTaxFeeDecorator(options.TreasuryKeeper, options.BankKeeper), // burn tax proceeds
-		cosmosante.NewSetPubKeyDecorator(options.AccountKeeper),            // SetPubKeyDecorator must be called before all signature verification decorators
+		NewBurnTaxFeeDecorator(options.TreasuryKeeper, options.BankKeeper, options.DistributionKeeper), // burn tax proceeds
+		cosmosante.NewSetPubKeyDecorator(options.AccountKeeper),                                        // SetPubKeyDecorator must be called before all signature verification decorators
 		cosmosante.NewValidateSigCountDecorator(options.AccountKeeper),
 		cosmosante.NewSigGasConsumeDecorator(options.AccountKeeper, sigGasConsumer),
 		NewSigVerificationDecorator(options.AccountKeeper, options.SignModeHandler),

custom/auth/ante/ante_test.go

@@ -22,6 +22,7 @@ import (
 	xauthsigning "github.com/cosmos/cosmos-sdk/x/auth/signing"
 	"github.com/cosmos/cosmos-sdk/x/auth/types"
 	authtypes "github.com/cosmos/cosmos-sdk/x/auth/types"
+	distributiontypes "github.com/cosmos/cosmos-sdk/x/distribution/types"
 
 	terraapp "github.com/classic-terra/core/app"
 	treasurytypes "github.com/classic-terra/core/x/treasury/types"
@@ -49,6 +50,8 @@ func createTestApp(isCheckTx bool, tempDir string) (*terraapp.TerraApp, sdk.Cont
 	ctx := app.BaseApp.NewContext(isCheckTx, tmproto.Header{})
 	app.AccountKeeper.SetParams(ctx, authtypes.DefaultParams())
 	app.TreasuryKeeper.SetParams(ctx, treasurytypes.DefaultParams())
+	app.DistrKeeper.SetParams(ctx, distributiontypes.DefaultParams())
+	app.DistrKeeper.SetFeePool(ctx, distributiontypes.InitialFeePool())
 
 	return app, ctx
 }

custom/auth/ante/burntax.go

@@ -11,18 +11,21 @@ import (
 // This will still need a parameter change proposal, but can be activated
 // anytime after this height
 const TaxPowerUpgradeHeight = 9346889
+const TaxPowerSplitHeight = 123456789
 
 // BurnTaxFeeDecorator will immediately burn the collected Tax
 type BurnTaxFeeDecorator struct {
 	treasuryKeeper TreasuryKeeper
 	bankKeeper     BankKeeper
+	distrKeeper    DistrKeeper
 }
 
 // NewBurnTaxFeeDecorator returns new tax fee decorator instance
-func NewBurnTaxFeeDecorator(treasuryKeeper TreasuryKeeper, bankKeeper BankKeeper) BurnTaxFeeDecorator {
+func NewBurnTaxFeeDecorator(treasuryKeeper TreasuryKeeper, bankKeeper BankKeeper, distrKeeper DistrKeeper) BurnTaxFeeDecorator {
 	return BurnTaxFeeDecorator{
 		treasuryKeeper: treasuryKeeper,
 		bankKeeper:     bankKeeper,
+		distrKeeper:    distrKeeper,
 	}
 }
 
@@ -50,6 +53,24 @@ func (btfd BurnTaxFeeDecorator) AnteHandle(ctx sdk.Context, tx sdk.Tx, simulate
 
 		// Record tax proceeds
 		if !taxes.IsZero() {
+			if currHeight >= TaxPowerSplitHeight {
+				feePool := btfd.distrKeeper.GetFeePool(ctx)
+
+				for i, taxCoin := range taxes {
+					splitTaxRate := btfd.treasuryKeeper.GetBurnSplitRate(ctx)
+					splitcoinAmount := splitTaxRate.MulInt(taxCoin.Amount).RoundInt()
+
+					splitCoin := sdk.NewCoin(taxCoin.Denom, splitcoinAmount)
+					taxes[i] = taxCoin.Sub(splitCoin)
+
+					if splitcoinAmount.IsPositive() {
+						feePool.CommunityPool = feePool.CommunityPool.Add(sdk.NewDecCoinFromCoin(splitCoin))
+					}
+				}
+
+				btfd.distrKeeper.SetFeePool(ctx, feePool)
+			}
+
 			err = btfd.bankKeeper.SendCoinsFromModuleToModule(ctx, types.FeeCollectorName, treasury.BurnModuleName, taxes)
 			if err != nil {
 				return ctx, sdkerrors.Wrapf(sdkerrors.ErrInsufficientFunds, err.Error())

custom/auth/ante/burntax_test.go

@@ -8,6 +8,7 @@ import (
 
 	"github.com/classic-terra/core/custom/auth/ante"
 	core "github.com/classic-terra/core/types"
+	treasury "github.com/classic-terra/core/x/treasury/types"
 	"github.com/cosmos/cosmos-sdk/types/query"
 	"github.com/cosmos/cosmos-sdk/x/auth/types"
 	minttypes "github.com/cosmos/cosmos-sdk/x/mint/types"
@@ -17,7 +18,7 @@ func (suite *AnteTestSuite) TestEnsureBurnTaxModule() {
 	suite.SetupTest(true) // setup
 	suite.txBuilder = suite.clientCtx.TxConfig.NewTxBuilder()
 
-	mfd := ante.NewBurnTaxFeeDecorator(suite.app.TreasuryKeeper, suite.app.BankKeeper)
+	mfd := ante.NewBurnTaxFeeDecorator(suite.app.TreasuryKeeper, suite.app.BankKeeper, suite.app.DistrKeeper)
 	antehandler := sdk.ChainAnteDecorators(mfd)
 
 	// keys and addresses
@@ -87,3 +88,88 @@ func (suite *AnteTestSuite) TestEnsureBurnTaxModule() {
 	suite.Require().Equal(taxes, totalSupply.Sub(supplyAfterBurn))
 
 }
+
+// go test -v -run ^TestAnteTestSuite/TestSplitTax$ github.com/classic-terra/core/custom/auth/ante
+func (suite *AnteTestSuite) TestSplitTax() {
+	suite.SetupTest(true) // setup
+	suite.txBuilder = suite.clientCtx.TxConfig.NewTxBuilder()
+
+	mfd := ante.NewBurnTaxFeeDecorator(suite.app.TreasuryKeeper, suite.app.BankKeeper, suite.app.DistrKeeper)
+	antehandler := sdk.ChainAnteDecorators(mfd)
+
+	// keys and addresses
+	priv1, _, addr1 := testdata.KeyTestPubAddr()
+
+	// msg and signatures
+	sendAmount := int64(1000000)
+	sendCoins := sdk.NewCoins(sdk.NewInt64Coin(core.MicroSDRDenom, sendAmount))
+	msg := banktypes.NewMsgSend(addr1, addr1, sendCoins)
+
+	feeAmount := testdata.NewTestFeeAmount()
+	gasLimit := testdata.NewTestGasLimit()
+	suite.Require().NoError(suite.txBuilder.SetMsgs(msg))
+	suite.txBuilder.SetFeeAmount(feeAmount)
+	suite.txBuilder.SetGasLimit(gasLimit)
+
+	privs, accNums, accSeqs := []cryptotypes.PrivKey{priv1}, []uint64{0}, []uint64{0}
+	tx, err := suite.CreateTestTx(privs, accNums, accSeqs, suite.ctx.ChainID())
+	suite.Require().NoError(err)
+
+	// ===tax should not be split before TaxPowerSplitHeight===
+	suite.ctx = suite.ctx.WithBlockHeight(ante.TaxPowerUpgradeHeight)
+	burnModule := suite.app.AccountKeeper.GetModuleAddress(treasury.BurnModuleName)
+
+	feePoolBefore := suite.app.DistrKeeper.GetFeePool(suite.ctx).CommunityPool
+	burnBefore := suite.app.BankKeeper.GetAllBalances(suite.ctx, burnModule)
+
+	// send taxes to fee collector to simulate DeductFeeDecorator antehandler
+	taxes := suite.DeductFees(sendAmount)
+
+	// send tx to BurnTaxFeeDecorator antehandler
+	_, err = antehandler(suite.ctx, tx, false)
+
+	feePoolAfter := suite.app.DistrKeeper.GetFeePool(suite.ctx).CommunityPool
+	burnAfter := suite.app.BankKeeper.GetAllBalances(suite.ctx, burnModule)
+
+	// expected: 1000 tax goes to burn
+	suite.Require().Equal(feePoolAfter, feePoolBefore)
+	suite.Require().Equal(burnBefore.Add(taxes...), burnAfter)
+
+	// ===tax should be split after TaxPowerSplitHeight===
+	suite.ctx = suite.ctx.WithBlockHeight(ante.TaxPowerSplitHeight)
+
+	feePoolBefore = suite.app.DistrKeeper.GetFeePool(suite.ctx).CommunityPool
+	burnBefore = suite.app.BankKeeper.GetAllBalances(suite.ctx, burnModule)
+
+	// send taxes to fee collector to simulate DeductFeeDecorator antehandler
+	taxes = suite.DeductFees(sendAmount)
+	splitTaxRate := suite.app.TreasuryKeeper.GetBurnSplitRate(suite.ctx)
+	splitTaxesDec := splitTaxRate.MulInt(taxes.AmountOf(core.MicroSDRDenom))
+	splitTaxesCoin := sdk.NewCoin(core.MicroSDRDenom, splitTaxesDec.RoundInt())
+
+	// send tx to BurnTaxFeeDecorator antehandler
+	_, err = antehandler(suite.ctx, tx, false)
+
+	feePoolAfter = suite.app.DistrKeeper.GetFeePool(suite.ctx).CommunityPool
+	burnAfter = suite.app.BankKeeper.GetAllBalances(suite.ctx, burnModule)
+	taxesAfter := taxes[0].Sub(splitTaxesCoin)
+
+	// expected: 500 tax goes to fee pool, 500 tax goes to burn
+	suite.Require().Equal(splitTaxesDec, feePoolAfter[0].Amount)
+	suite.Require().Equal(burnBefore.Add(taxesAfter), burnAfter)
+}
+
+func (suite *AnteTestSuite) DeductFees(sendAmount int64) sdk.Coins {
+	tk := suite.app.TreasuryKeeper
+	expectedTax := tk.GetTaxRate(suite.ctx).MulInt64(sendAmount).TruncateInt()
+	if taxCap := tk.GetTaxCap(suite.ctx, core.MicroSDRDenom); expectedTax.GT(taxCap) {
+		expectedTax = taxCap
+	}
+	taxes := sdk.NewCoins(sdk.NewInt64Coin(core.MicroSDRDenom, expectedTax.Int64()))
+	bk := suite.app.BankKeeper
+	bk.MintCoins(suite.ctx, minttypes.ModuleName, taxes)
+	// populate the FeeCollector module with taxes
+	bk.SendCoinsFromModuleToModule(suite.ctx, minttypes.ModuleName, types.FeeCollectorName, taxes)
+
+	return taxes
+}

custom/auth/ante/expected_keeper.go

@@ -2,13 +2,15 @@ package ante
 
 import (
 	sdk "github.com/cosmos/cosmos-sdk/types"
+	distributiontypes "github.com/cosmos/cosmos-sdk/x/distribution/types"
 )
 
 // TreasuryKeeper for tax charging & recording
 type TreasuryKeeper interface {
 	RecordEpochTaxProceeds(ctx sdk.Context, delta sdk.Coins)
 	GetTaxRate(ctx sdk.Context) (taxRate sdk.Dec)
 	GetTaxCap(ctx sdk.Context, denom string) (taxCap sdk.Int)
+	GetBurnSplitRate(ctx sdk.Context) sdk.Dec
 }
 
 // OracleKeeper for feeder validation
@@ -21,3 +23,8 @@ type BankKeeper interface {
 	SendCoinsFromAccountToModule(ctx sdk.Context, senderAddr sdk.AccAddress, recipientModule string, amt sdk.Coins) error
 	SendCoinsFromModuleToModule(ctx sdk.Context, senderModule string, recipientModule string, amt sdk.Coins) error
 }
+
+type DistrKeeper interface {
+	SetFeePool(ctx sdk.Context, feePool distributiontypes.FeePool)
+	GetFeePool(ctx sdk.Context) distributiontypes.FeePool
+}

docs/core/proto-docs.md

@@ -13022,6 +13022,7 @@ Params defines the parameters for the oracle module.
 | `window_short` | [uint64](#uint64) |  |  |
 | `window_long` | [uint64](#uint64) |  |  |
 | `window_probation` | [uint64](#uint64) |  |  |
+| `burn_tax_split` | [string](#string) |  |  |
 
 
 

proto/terra/treasury/v1beta1/treasury.proto

@@ -26,6 +26,11 @@ message Params {
   uint64 window_short     = 5 [(gogoproto.moretags) = "yaml:\"window_short\""];
   uint64 window_long      = 6 [(gogoproto.moretags) = "yaml:\"window_long\""];
   uint64 window_probation = 7 [(gogoproto.moretags) = "yaml:\"window_probation\""];
+  string burn_tax_split = 8 [
+    (gogoproto.moretags)   = "yaml:\"burn_tax_split\"",
+    (gogoproto.customtype) = "github.com/cosmos/cosmos-sdk/types.Dec",
+    (gogoproto.nullable)   = false
+  ];
 }
 
 // PolicyConstraints - defines policy constraints can be applied in tax & reward policies

scripts/run-node.sh

@@ -0,0 +1,76 @@
+#!/bin/bash
+
+rm -rf mytestnet
+pkill terrad
+
+BINARY=$1
+DENOM=$2
+
+SED_BINARY=sed
+# check if this is OS X
+if [[ "$OSTYPE" == "darwin"* ]]; then
+    # check if gsed is installed
+    if ! command -v gsed &> /dev/null
+    then
+        echo "gsed could not be found. Please install it with 'brew install gnu-sed'"
+        exit
+    else
+        SED_BINARY=gsed
+    fi
+fi
+
+# check BINARY is set. If not, build terrad and set BINARY
+if [ -z "$BINARY" ]; then
+    make build
+    BINARY=build/terrad
+fi
+
+# check DENOM is set. If not, set to uluna
+if [ -z "$DENOM" ]; then
+    DENOM=uluna
+fi
+
+HOME=mytestnet
+CHAIN_ID="test"
+KEYRING="test"
+KEY="test"
+KEY1="test1"
+KEY2="test2"
+
+# Function updates the config based on a jq argument as a string
+update_test_genesis () {
+    # EX: update_test_genesis '.consensus_params["block"]["max_gas"]="100000000"'
+    cat $HOME/config/genesis.json | jq --arg DENOM "$2" "$1" > $HOME/config/tmp_genesis.json && mv $HOME/config/tmp_genesis.json $HOME/config/genesis.json
+}
+
+$BINARY init --chain-id $CHAIN_ID moniker --home $HOME
+
+$BINARY keys add $KEY --keyring-backend $KEYRING --home $HOME
+$BINARY keys add $KEY1 --keyring-backend $KEYRING --home $HOME
+$BINARY keys add $KEY2 --keyring-backend $KEYRING --home $HOME
+
+# Allocate genesis accounts (cosmos formatted addresses)
+$BINARY add-genesis-account $KEY "1000000000000${DENOM}" --keyring-backend $KEYRING --home $HOME
+$BINARY add-genesis-account $KEY1 "1000000000000${DENOM}" --keyring-backend $KEYRING --home $HOME
+$BINARY add-genesis-account $KEY2 "1000000000000${DENOM}" --keyring-backend $KEYRING --home $HOME
+
+update_test_genesis '.app_state["gov"]["voting_params"]["voting_period"] = "50s"'
+update_test_genesis '.app_state["mint"]["params"]["mint_denom"]=$DENOM' $DENOM
+update_test_genesis '.app_state["gov"]["deposit_params"]["min_deposit"]=[{"denom": $DENOM,"amount": "1000000"}]' $DENOM
+update_test_genesis '.app_state["crisis"]["constant_fee"]={"denom": $DENOM,"amount": "1000"}' $DENOM
+update_test_genesis '.app_state["staking"]["params"]["bond_denom"]=$DENOM' $DENOM
+
+# enable rest server and swagger
+$SED_BINARY -i '0,/enable = false/s//enable = true/' $HOME/config/app.toml
+$SED_BINARY -i 's/swagger = false/swagger = true/' $HOME/config/app.toml
+
+# Sign genesis transaction
+$BINARY gentx $KEY "1000000${DENOM}" --keyring-backend $KEYRING --chain-id $CHAIN_ID --home $HOME
+
+# Collect genesis tx
+$BINARY collect-gentxs --home $HOME
+
+# Run this to ensure everything worked and that the genesis file is setup correctly
+$BINARY validate-genesis --home $HOME
+
+$BINARY start --home $HOME