feat(community): consolidate community funds (#1729)

* Add consolidate methods

* Update distr feepool balance with dust, add tests

* Set params for proposal handler to not influence module balances

* Add StakingRewardsPerSecond param for proposal test

* Update changelog

* Update test to check emitted events

* Log dust amounts for x/distribution

* Modify feepool communitypool field instead of entire replacement

* Update tests to include cases with empty balances

* Move EventsContains to app

* Remove extra copied ModuleName

* Add Require() to incentive claims in tests to reduce errors

* Move consolidate tests to testutil

* Only transfer non-ukava coins

* Add DefaultStakingRewardsState to proposal handler test

* Move event emit before consolidate

* add golangci specific timeout

---------

Co-authored-by: Nick DeLuca <nickdeluca08@gmail.com>

.github/workflows/ci-lint.yml

@@ -14,3 +14,4 @@ jobs:
         with:
           github_token: ${{ secrets.github_token }}
           reporter: github-pr-review
+          golangci_lint_flags: --timeout 10m

CHANGELOG.md

@@ -53,6 +53,7 @@ Ref: https://keepachangelog.com/en/1.0.0/
 - (community) [#1704] Add param to control when inflation will be disabled
 - (community) [#1707] Default staking rewards per second set to `744191`
 - (community) [#1706] Add disable inflation upgrade to begin blocker that updates x/mint and x/kavadist params.
+- (community) [#1729] Consolidate community funds from `x/distribution` and `x/kavadist` to `x/community`
 
 ## [v0.24.0]
 
@@ -293,6 +294,7 @@ the [changelog](https://github.com/cosmos/cosmos-sdk/blob/v0.38.4/CHANGELOG.md).
 - [#257](https://github.com/Kava-Labs/kava/pulls/257) Include scripts to run
   large-scale simulations remotely using aws-batch
 
+[#1729]: https://github.com/Kava-Labs/kava/pull/1729
 [#1745]: https://github.com/Kava-Labs/kava/pull/1745
 [#1707]: https://github.com/Kava-Labs/kava/pull/1707
 [#1706]: https://github.com/Kava-Labs/kava/pull/1706

x/community/keeper/consolidate.go

@@ -0,0 +1,104 @@
+package keeper
+
+import (
+	"fmt"
+
+	sdk "github.com/cosmos/cosmos-sdk/types"
+	"github.com/kava-labs/kava/x/community/types"
+
+	kavadisttypes "github.com/kava-labs/kava/x/kavadist/types"
+
+	distrtypes "github.com/cosmos/cosmos-sdk/x/distribution/types"
+)
+
+// StartCommunityFundConsolidation consolidates the community funds from
+// x/distribution and x/kavadist into the x/community module account
+func (k Keeper) StartCommunityFundConsolidation(ctx sdk.Context) error {
+	logger := k.Logger(ctx)
+	logger.Info("community fund consolidation upgrade started")
+
+	// Consolidate x/distribution community pool
+	if err := k.consolidateCommunityDistribution(ctx); err != nil {
+		return err
+	}
+
+	// Consolidate x/kavadist account
+	if err := k.consolidateCommunityKavadist(ctx); err != nil {
+		return err
+	}
+
+	// Log new x/community balance
+	communityCoins := k.GetModuleAccountBalance(ctx)
+	logger.Info(fmt.Sprintf("community funds consolidated, x/community balance is now %s", communityCoins))
+
+	return nil
+}
+
+// consolidateCommunityDistribution transfers all coins from the x/distribution
+// community pool to the x/community module account
+func (k Keeper) consolidateCommunityDistribution(ctx sdk.Context) error {
+	logger := k.Logger(ctx)
+
+	// Get community coins with leftover leftoverDust
+	truncatedCoins, leftoverDust := k.distrKeeper.
+		GetFeePoolCommunityCoins(ctx).
+		TruncateDecimal()
+
+	// Transfer to x/community
+	err := k.bankKeeper.SendCoinsFromModuleToModule(
+		ctx,
+		distrtypes.ModuleName, // sender
+		types.ModuleName,      // recipient
+		truncatedCoins,
+	)
+	if err != nil {
+		return fmt.Errorf("failed to transfer x/distribution coins to x/community: %w", err)
+	}
+
+	logger.Info(fmt.Sprintf("transferred %s from x/distribution to x/community", truncatedCoins))
+
+	// Set x/distribution community pool to remaining dust amounts
+	feePool := k.distrKeeper.GetFeePool(ctx)
+	feePool.CommunityPool = leftoverDust
+	k.distrKeeper.SetFeePool(ctx, feePool)
+
+	logger.Info(fmt.Sprintf("remaining x/distribution community pool dust: %s", leftoverDust))
+
+	return nil
+}
+
+// consolidateCommunityKavadist transfers all coins from the x/kavadist module
+// account to the x/community module account
+func (k Keeper) consolidateCommunityKavadist(ctx sdk.Context) error {
+	logger := k.Logger(ctx)
+
+	kavadistAcc := k.accountKeeper.GetModuleAccount(ctx, kavadisttypes.KavaDistMacc)
+	transferCoins := k.bankKeeper.GetAllBalances(ctx, kavadistAcc.GetAddress())
+
+	// Remove ukava from transfer coins - ony transfer non-ukava coins
+	found, kavaCoins := transferCoins.Find("ukava")
+	if found {
+		transferCoins = transferCoins.Sub(kavaCoins)
+	}
+
+	// Transfer remaining coins to x/community
+	err := k.bankKeeper.SendCoinsFromModuleToModule(
+		ctx,
+		kavadisttypes.ModuleName, // sender
+		types.ModuleName,         // recipient
+		transferCoins,
+	)
+	if err != nil {
+		return fmt.Errorf("failed to transfer x/kavadist coins to x/community: %w", err)
+	}
+
+	kavadistRemainingCoins := k.bankKeeper.GetAllBalances(ctx, kavadistAcc.GetAddress())
+
+	logger.Info(fmt.Sprintf(
+		"transferred %s from x/kavadist to x/community, remaining x/kavadist balance: %s",
+		transferCoins,
+		kavadistRemainingCoins,
+	))
+
+	return nil
+}

x/community/keeper/disable_inflation.go

@@ -22,17 +22,21 @@ func (k Keeper) CheckAndDisableMintAndKavaDistInflation(ctx sdk.Context) {
 	// run disable inflation logic
 	k.disableInflation(ctx)
 
+	ctx.EventManager().EmitEvent(
+		sdk.NewEvent(
+			types.EventTypeInflationStop,
+		),
+	)
+
 	// reset disable inflation time to ensure next call is a no-op
 	params.UpgradeTimeDisableInflation = time.Time{}
 	// set staking rewards to provided intial value
 	params.StakingRewardsPerSecond = params.UpgradeTimeSetStakingRewardsPerSecond
 	k.SetParams(ctx, params)
 
-	ctx.EventManager().EmitEvent(
+	if err := k.StartCommunityFundConsolidation(ctx); err != nil {
-		sdk.NewEvent(
+		panic(err)
-			types.EventTypeInflationStop,
+	}
-		),
-	)
 }
 
 // TODO: double check this is correct method for disabling inflation in kavadist without

x/community/keeper/keeper.go

@@ -16,6 +16,7 @@ type Keeper struct {
 	key storetypes.StoreKey
 	cdc codec.Codec
 
+	accountKeeper  types.AccountKeeper
 	bankKeeper     types.BankKeeper
 	cdpKeeper      types.CdpKeeper
 	distrKeeper    types.DistributionKeeper
@@ -63,6 +64,7 @@ func NewKeeper(
 		key: key,
 		cdc: cdc,
 
+		accountKeeper:  ak,
 		bankKeeper:     bk,
 		cdpKeeper:      ck,
 		distrKeeper:    dk,

x/community/keeper/proposal_handler_test.go

@@ -5,6 +5,7 @@ import (
 	"testing"
 	"time"
 
+	sdkmath "cosmossdk.io/math"
 	sdk "github.com/cosmos/cosmos-sdk/types"
 	"github.com/stretchr/testify/suite"
 	abcitypes "github.com/tendermint/tendermint/abci/types"
@@ -27,9 +28,11 @@ func c(denom string, amount int64) sdk.Coin { return sdk.NewInt64Coin(denom, amo
 func ukava(amt int64) sdk.Coins {
 	return sdk.NewCoins(c("ukava", amt))
 }
+
 func usdx(amt int64) sdk.Coins {
 	return sdk.NewCoins(c("usdx", amt))
 }
+
 func otherdenom(amt int64) sdk.Coins {
 	return sdk.NewCoins(c("other-denom", amt))
 }
@@ -67,10 +70,19 @@ func (suite *proposalTestSuite) SetupTest() {
 		ChainID: chainID,
 	})
 
+	// Set UpgradeTimeDisableInflation to far future to not influence module
+	// account balances
+	params := types.Params{
+		UpgradeTimeDisableInflation: time.Now().Add(100000 * time.Hour),
+		StakingRewardsPerSecond:     sdkmath.LegacyNewDec(0),
+	}
+	communityGs := types.NewGenesisState(params, types.DefaultStakingRewardsState())
+
 	tApp.InitializeFromGenesisStatesWithTimeAndChainID(
 		genTime, chainID,
 		app.GenesisState{hardtypes.ModuleName: tApp.AppCodec().MustMarshalJSON(&hardGS)},
 		app.GenesisState{pricefeedtypes.ModuleName: tApp.AppCodec().MustMarshalJSON(&pricefeedGS)},
+		app.GenesisState{types.ModuleName: tApp.AppCodec().MustMarshalJSON(&communityGs)},
 		testutil.NewCDPGenState(tApp.AppCodec(), "ukava", "kava", sdk.NewDec(2)),
 	)
 

x/community/migrations/v2/store.go

@@ -11,10 +11,6 @@ import (
 	"github.com/kava-labs/kava/x/community/types"
 )
 
-const (
-	ModuleName = "mint"
-)
-
 // Migrate migrates the x/community module state from the consensus version 1 to
 // version 2. Specifically, sets new parameters in the module state.
 func Migrate(

x/community/testutil/consolidate.go

@@ -0,0 +1,180 @@
+package testutil
+
+import (
+	"time"
+
+	sdk "github.com/cosmos/cosmos-sdk/types"
+	banktypes "github.com/cosmos/cosmos-sdk/x/bank/types"
+
+	distrtypes "github.com/cosmos/cosmos-sdk/x/distribution/types"
+	"github.com/kava-labs/kava/app"
+	types "github.com/kava-labs/kava/x/community/types"
+	kavadisttypes "github.com/kava-labs/kava/x/kavadist/types"
+)
+
+func (suite *disableInflationTestSuite) TestStartCommunityFundConsolidation() {
+	tests := []struct {
+		name                   string
+		initialFeePoolCoins    sdk.DecCoins
+		initialKavadistBalance sdk.Coins
+	}{
+		{
+			"basic test with both balances and dust",
+			sdk.NewDecCoins(
+				sdk.NewDecCoinFromDec("ukava", sdk.NewDecWithPrec(123456, 2)),
+				sdk.NewDecCoinFromDec("usdx", sdk.NewDecWithPrec(654321, 3)),
+			),
+			sdk.NewCoins(
+				sdk.NewInt64Coin("ukava", 10_000),
+				sdk.NewInt64Coin("usdx", 10_000),
+			),
+		},
+		{
+			"empty x/distribution feepool",
+			sdk.DecCoins(nil),
+			sdk.NewCoins(
+				sdk.NewInt64Coin("ukava", 10_000),
+				sdk.NewInt64Coin("usdx", 10_000),
+			),
+		},
+		{
+			"empty x/kavadist balance",
+			sdk.NewDecCoins(
+				sdk.NewDecCoinFromDec("ukava", sdk.NewDecWithPrec(123456, 2)),
+				sdk.NewDecCoinFromDec("usdx", sdk.NewDecWithPrec(654321, 3)),
+			),
+			sdk.Coins{},
+		},
+		{
+			"both x/distribution feepool and x/kavadist balance empty",
+			sdk.DecCoins(nil),
+			sdk.Coins{},
+		},
+	}
+
+	for _, tc := range tests {
+		suite.Run(tc.name, func() {
+			suite.SetupTest()
+			ak := suite.App.GetAccountKeeper()
+
+			initialFeePool := distrtypes.FeePool{
+				CommunityPool: tc.initialFeePoolCoins,
+			}
+
+			initialFeePoolCoins, initialFeePoolDust := initialFeePool.CommunityPool.TruncateDecimal()
+
+			// More coins than initial feepool/communitypool
+			fundCoins := sdk.NewCoins(
+				sdk.NewInt64Coin("ukava", 10_000),
+				sdk.NewInt64Coin("usdx", 10_000),
+			)
+
+			// Always fund x/distribution with enough coins to cover feepool
+			err := suite.App.FundModuleAccount(
+				suite.Ctx,
+				distrtypes.ModuleName,
+				fundCoins,
+			)
+			suite.NoError(err, "x/distribution account should be funded without error")
+
+			err = suite.App.FundModuleAccount(
+				suite.Ctx,
+				kavadisttypes.ModuleName,
+				tc.initialKavadistBalance,
+			)
+			suite.NoError(err, "x/kavadist account should be funded without error")
+
+			suite.App.GetDistrKeeper().SetFeePool(suite.Ctx, initialFeePool)
+
+			// Ensure the feepool was set before migration
+			feePoolBefore := suite.App.GetDistrKeeper().GetFeePool(suite.Ctx)
+			suite.Equal(initialFeePool, feePoolBefore, "initial feepool should be set")
+			communityBalanceBefore := suite.App.GetCommunityKeeper().GetModuleAccountBalance(suite.Ctx)
+
+			kavadistAcc := ak.GetModuleAccount(suite.Ctx, kavadisttypes.KavaDistMacc)
+			kavaDistCoinsBefore := suite.App.GetBankKeeper().GetAllBalances(suite.Ctx, kavadistAcc.GetAddress())
+			suite.Equal(
+				tc.initialKavadistBalance,
+				kavaDistCoinsBefore,
+				"x/kavadist balance should be funded",
+			)
+
+			expectedKavaDistCoins := sdk.NewCoins(sdk.NewCoin("ukava", kavaDistCoinsBefore.AmountOf("ukava")))
+
+			// -------------
+			// Run upgrade
+
+			params, found := suite.Keeper.GetParams(suite.Ctx)
+			suite.Require().True(found)
+			params.UpgradeTimeDisableInflation = suite.Ctx.BlockTime().Add(-time.Minute)
+			suite.Keeper.SetParams(suite.Ctx, params)
+
+			err = suite.Keeper.StartCommunityFundConsolidation(suite.Ctx)
+			suite.NoError(err, "consolidation should not error")
+
+			// -------------
+			// Check results
+			suite.Run("module balances after consolidation should moved", func() {
+				feePoolAfter := suite.App.GetDistrKeeper().GetFeePool(suite.Ctx)
+				suite.Equal(
+					initialFeePoolDust,
+					feePoolAfter.CommunityPool,
+					"x/distribution community pool should be sent to x/community",
+				)
+
+				kavaDistCoinsAfter := suite.App.GetBankKeeper().GetAllBalances(suite.Ctx, kavadistAcc.GetAddress())
+				suite.Equal(
+					expectedKavaDistCoins,
+					kavaDistCoinsAfter,
+					"x/kavadist balance should ony contain ukava",
+				)
+
+				totalExpectedCommunityPoolCoins := communityBalanceBefore.
+					Add(initialFeePoolCoins...).      // x/distribution fee pool
+					Add(tc.initialKavadistBalance...) // x/kavadist module balance
+
+				communityBalanceAfter := suite.App.GetCommunityKeeper().GetModuleAccountBalance(suite.Ctx)
+
+				// Use .IsAllGTE to avoid types.Coins(nil) vs types.Coins{} mismatch
+				suite.Truef(
+					totalExpectedCommunityPoolCoins.IsAllGTE(communityBalanceAfter),
+					"x/community balance should be increased by the truncated x/distribution community pool, got %s, expected %s",
+					communityBalanceAfter,
+					totalExpectedCommunityPoolCoins,
+				)
+			})
+
+			suite.Run("bank transfer events should be emitted", func() {
+				communityAcc := ak.GetModuleAccount(suite.Ctx, types.ModuleAccountName)
+				distributionAcc := ak.GetModuleAccount(suite.Ctx, distrtypes.ModuleName)
+				kavadistAcc := ak.GetModuleAccount(suite.Ctx, kavadisttypes.KavaDistMacc)
+
+				events := suite.Ctx.EventManager().Events()
+
+				suite.NoError(
+					app.EventsContains(
+						events,
+						sdk.NewEvent(
+							banktypes.EventTypeTransfer,
+							sdk.NewAttribute(banktypes.AttributeKeyRecipient, communityAcc.GetAddress().String()),
+							sdk.NewAttribute(banktypes.AttributeKeySender, distributionAcc.GetAddress().String()),
+							sdk.NewAttribute(sdk.AttributeKeyAmount, initialFeePoolCoins.String()),
+						),
+					),
+				)
+
+				suite.NoError(
+					app.EventsContains(
+						events,
+						sdk.NewEvent(
+							banktypes.EventTypeTransfer,
+							sdk.NewAttribute(banktypes.AttributeKeyRecipient, communityAcc.GetAddress().String()),
+							sdk.NewAttribute(banktypes.AttributeKeySender, kavadistAcc.GetAddress().String()),
+							sdk.NewAttribute(sdk.AttributeKeyAmount, kavaDistCoinsBefore.Sub(expectedKavaDistCoins...).String()),
+						),
+					),
+				)
+			})
+		})
+	}
+}

x/community/types/expected_keepers.go

@@ -3,6 +3,7 @@ package types
 import (
 	sdk "github.com/cosmos/cosmos-sdk/types"
 	authtypes "github.com/cosmos/cosmos-sdk/x/auth/types"
+	distrtypes "github.com/cosmos/cosmos-sdk/x/distribution/types"
 	minttypes "github.com/cosmos/cosmos-sdk/x/mint/types"
 	kavadisttypes "github.com/kava-labs/kava/x/kavadist/types"
 )
@@ -40,6 +41,8 @@ type DistributionKeeper interface {
 	DistributeFromFeePool(ctx sdk.Context, amount sdk.Coins, receiveAddr sdk.AccAddress) error
 	FundCommunityPool(ctx sdk.Context, amount sdk.Coins, sender sdk.AccAddress) error
 	GetFeePoolCommunityCoins(ctx sdk.Context) sdk.DecCoins
+	GetFeePool(ctx sdk.Context) distrtypes.FeePool
+	SetFeePool(ctx sdk.Context, feePool distrtypes.FeePool)
 }
 
 type MintKeeper interface {

x/incentive/keeper/msg_server_delegator_test.go

@@ -47,7 +47,7 @@ func (suite *HandlerTestSuite) TestPayoutDelegatorClaimMultiDenom() {
 
 	// Claim denoms
 	err := suite.DeliverIncentiveMsg(&msg)
-	suite.NoError(err)
+	suite.Require().NoError(err)
 
 	// Check rewards were paid out
 	expectedRewardsHard := c("hard", int64(0.2*float64(2*7*1e6)))
@@ -97,7 +97,7 @@ func (suite *HandlerTestSuite) TestPayoutDelegatorClaimSingleDenom() {
 
 	// Claim rewards
 	err := suite.DeliverIncentiveMsg(&msg)
-	suite.NoError(err)
+	suite.Require().NoError(err)
 
 	// Check rewards were paid out
 	expectedRewards := c("swap", 2*7*1e6)

x/incentive/keeper/msg_server_hard_test.go

@@ -40,7 +40,7 @@ func (suite *HandlerTestSuite) TestPayoutHardClaimMultiDenom() {
 
 	// Claim denoms
 	err := suite.DeliverIncentiveMsg(&msg)
-	suite.NoError(err)
+	suite.Require().NoError(err)
 
 	// Check rewards were paid out
 	expectedRewardsHard := c("hard", int64(0.2*float64(2*7*1e6)))
@@ -85,7 +85,7 @@ func (suite *HandlerTestSuite) TestPayoutHardClaimSingleDenom() {
 
 	// Claim rewards
 	err := suite.DeliverIncentiveMsg(&msg)
-	suite.NoError(err)
+	suite.Require().NoError(err)
 
 	// Check rewards were paid out
 	expectedRewards := c("swap", 2*7*1e6)

x/incentive/keeper/msg_server_swap_test.go

@@ -130,7 +130,7 @@ func (suite *HandlerTestSuite) TestPayoutSwapClaimMultiDenom() {
 
 	// Claim rewards
 	err := suite.DeliverIncentiveMsg(&msg)
-	suite.NoError(err)
+	suite.Require().NoError(err)
 
 	// Check rewards were paid out
 	expectedRewardsHard := c("hard", int64(0.2*float64(7*1e6)))
@@ -176,7 +176,7 @@ func (suite *HandlerTestSuite) TestPayoutSwapClaimSingleDenom() {
 
 	// Claim rewards
 	err := suite.DeliverIncentiveMsg(&msg)
-	suite.NoError(err)
+	suite.Require().NoError(err)
 
 	// Check rewards were paid out
 	expectedRewards := c("swap", 7*1e6)

x/incentive/keeper/msg_server_usdx_test.go

@@ -32,7 +32,7 @@ func (suite *HandlerTestSuite) TestPayoutUSDXClaim() {
 
 	// Claim a single denom
 	err = suite.DeliverIncentiveMsg(&msg)
-	suite.NoError(err)
+	suite.Require().NoError(err)
 
 	// Check rewards were paid out
 	expectedRewards := cs(c(types.USDXMintingRewardDenom, 7*1e6))

x/incentive/keeper/rewards_borrow_test.go

@@ -86,7 +86,7 @@ func (suite *BorrowIntegrationTests) TestSingleUserAccumulatesRewardsAfterSyncin
 	})
 
 	// User claims all their rewards
-	suite.NoError(suite.DeliverIncentiveMsg(&msg))
+	suite.Require().NoError(suite.DeliverIncentiveMsg(&msg))
 
 	// The users has always had 100% of borrows, so they should receive all rewards for the previous two blocks.
 	// Total rewards for each block is block duration * rewards per second

x/incentive/keeper/rewards_supply_test.go

@@ -89,7 +89,7 @@ func (suite *SupplyIntegrationTests) TestSingleUserAccumulatesRewardsAfterSyncin
 		})
 
 	// User claims all their rewards
-	suite.NoError(suite.DeliverIncentiveMsg(&msg))
+	suite.Require().NoError(suite.DeliverIncentiveMsg(&msg))
 
 	// The users has always had 100% of deposits, so they should receive all rewards for the previous two blocks.
 	// Total rewards for each block is block duration * rewards per second

x/incentive/keeper/rewards_usdx_test.go

@@ -94,7 +94,7 @@ func (suite *USDXIntegrationTests) TestSingleUserAccumulatesRewardsAfterSyncing(
 
 	// User claims all their rewards
 	msg := types.NewMsgClaimUSDXMintingReward(userA.String(), "large")
-	suite.NoError(suite.DeliverIncentiveMsg(&msg))
+	suite.Require().NoError(suite.DeliverIncentiveMsg(&msg))
 
 	// The users has always had 100% of cdp debt, so they should receive all rewards for the previous two blocks.
 	// Total rewards for each block is block duration * rewards per second
@@ -141,7 +141,7 @@ func (suite *USDXIntegrationTests) TestSingleUserAccumulatesRewardsWithoutSyncin
 	suite.NextBlockAfter(1e6 * time.Second)
 
 	msg := types.NewMsgClaimUSDXMintingReward(user.String(), "large")
-	suite.NoError(suite.DeliverIncentiveMsg(&msg))
+	suite.Require().NoError(suite.DeliverIncentiveMsg(&msg))
 
 	// The users has always had 100% of cdp debt, so they should receive all rewards for the previous two blocks.
 	// Total rewards for each block is block duration * rewards per second
@@ -217,7 +217,7 @@ func (suite *USDXIntegrationTests) TestReinstatingRewardParamsDoesNotTriggerOver
 
 	// Claim rewards
 	msg := types.NewMsgClaimUSDXMintingReward(userB.String(), "large")
-	suite.NoError(suite.DeliverIncentiveMsg(&msg))
+	suite.Require().NoError(suite.DeliverIncentiveMsg(&msg))
 
 	// The cdp had half the total borrows for a 1s block. So should earn half the rewards for that block
 	suite.BalanceInEpsilon(