SIMD-XXXX: Vote Account v4

proposals/XXXX-vote-account-v4.md

@@ -0,0 +1,243 @@
+---
+simd: 'XXXX'
+title: Vote Account v4
+authors: Justin Starry (Anza)
+category: Standard
+type: Core
+status: Review
+created: 2024-10-17
+feature: (fill in with feature tracking issues once accepted)
+---
+
+## Summary
+
+A new update for the vote program is proposed to improve authorized voter
+bookkeeping as well as allow validators to set commission rates and collector
+accounts for different revenue sources.
+
+## Motivation
+
+This SIMD details two different modifications to the vote program and vote
+account state and combines these changes into one proposal so that only
+one vote account version update is needed.
+
+### Revenue Collection Customization
+
+- There is only one commission rate stored in vote account state but validators
+with to be able to use different commission rates for different income streams
+like block rewards and tips.
+
+- It's not possible to customize which accounts income is collected into.
+Currently all block rewards and tips are always collected into the validator
+identity account which cannot be a cold wallet since the identity needs to sign
+a lot of messages for various network protocols used in Solana like turbine,
+gossip, and QUIC.
+
+### Authorized voter bookkeeping
+
+- Over 40% of vote state size is reserved for tracking a history of 32 prior
+authorized voters for the vote account in the `prior_voters` field. Having such
+a long history of prior voters is arguably not very useful, tracking the most
+recent previous epoch's voter is probably sufficient and can be stored in the
+`authorized_voters` field instead.
+
+- The `authorized_voters` field doesn't store the voter for the previous epoch
+so it's impossible to have a transition epoch where both the previous and newly
+assigned voter can both sign votes.
+
+## Alternatives Considered
+
+### Reuse vote commission
+
+Vote accounts already allow validators to set a commission rate for inflation
+rewards and so it's not unreasonable to expect that this commission rate could
+also be used to distribute block rewards. However, some validators have
+expressed a desire to be able to tune revenue streams indpendently.
+
+## New Terminology
+
+- Block Fees Collector: The account used to collect commissioned block fees for
+validators. Previously collected by default into the validator identity account.
+
+- Block Tips Collector: The account used to collect commissioned block tips for
+validators. Previously configured by a Jito CLI parameter.
+
+- Inflation Rewards Collector: The account used to collect commissioned
+inflation rewards for validators. Previously collected by default into the vote
+account.
+
+- Block Fees Commission: The commission rate that determines how much of block
+base fee and priority fee revenue is collected by the validator before
+distributing remaining funds to stake delegators. Previously 100% of block fees
+were distributed to the validator identity account.
+
+- Block Tips Commission: The commission rate that determines how much of block
+tip revenue is collected by the validator before distributing remaining funds to
+stake delegators. Previously configured by a Jito CLI parameter.
+
+- Inflation Rewards Commission: The commission rate that determines how much of 
+stake inflation rewards are collected by the validator before distributing the
+remaining rewards to stake delegators. Previously referred to as simply the
+"commission" since there was no need to differentiate from other types of
+commission.
+
+## Detailed Design
+
+Currently, all block fees, including both transaction base fees and priority
+fees, are collected into a validator's node id account. This proposal details
+changes to the Vote Program and Vote Account that will allow validators to
+specify how different sources of income are collected. This proposal also
+updates the bookkeeping for authorized voters in the vote account state.
+
+### Vote Account 
+
+A new version of vote state will be introduced with the enum discriminant value
+of `3u32` which will be little endian encoded in the first 4 bytes of account
+data. 
+
+```rust
+pub enum VoteStateVersions {
+    V1(..),
+    V2(..),
+    V3(..),
+    V4(..), // <- new variant
+}
+```
+
+This new version of vote state will include new fields for setting the
+commission and collector account for each of the three sources of validator
+income: inflation rewards, block fees, and block tips. It will also remove
+the `prior_voters` field.
+
+```rust
+pub struct VoteStateV4 {
+    pub node_pubkey: Pubkey,
+    pub authorized_withdrawer: Pubkey,
+
+    /// NEW: the collector accounts for validator income
+    pub inflation_rewards_collector: Pubkey,
+    pub block_fees_collector: Pubkey,
+    pub block_tips_collector: Pubkey,
+
+    /// NEW: percentages (0-100) that represent how much of each income source
+    /// should be given to this VoteAccount
+    pub inflation_rewards_commission: u8,
+    pub block_fees_commission: u8,
+    pub block_tips_commission: u8,
+
+    /// NEW: bump seed for deriving this vote accounts stake rewards pool address
+    pub stake_rewards_pool_bump_seed: u8,
+
+    /// REMOVED
+    /// prior_voters: CircBuf<(Pubkey, Epoch, Epoch)>,
+
+    pub votes: VecDeque<LandedVote>,
+    pub root_slot: Option<Slot>,
+    pub authorized_voters: AuthorizedVoters,
+    pub epoch_credits: Vec<(Epoch, u64, u64)>,
+    pub last_timestamp: BlockTimestamp,
+}
+```
+
+Whenever a vote account is modified by the vote program in a transaction AND
+hasn't been updated to v4 yet, the account state MUST be saved in the new format
+with the following default values for the new fields described above:
+
+```rust
+VoteStateV4 {
+    // ..
+
+    inflation_rewards_collector: vote_state_v3.node_pubkey,
+    block_fees_collector: vote_state_v3.node_pubkey,
+    block_tips_collector: vote_state_v3.node_pubkey,
+    inflation_rewards_commission: vote_state_v3.commission,
+    block_fees_commission: 100u8,
+    block_tips_commission: 100u8,
+    stake_rewards_pool_bump_seed: find_stake_rewards_pool_bump_seed(vote_pubkey),
+
+    // ..
+}
+
+fn find_stake_rewards_pool_bump_seed(vote_pubkey: &Pubkey) -> u8 {
+    Pubkey::find_program_address(
+        [
+            b"stake_rewards_pool",
+            vote_pubkey.as_ref(),
+        ],
+        &stake_program::id(),
+    ).1
+}
+```
+
+### Vote Program
+
+```rust
+pub enum VoteInstruction {
+    // ..
+    UpdateCommission {..} // 5u32
+    // ..
+    UpdateCommissionWithKind { // 16u32
+        commission: u8,
+        kind: CollectorKind,
+    },
+    UpdateCollectorAccount { // 17u32
+        pubkey: Pubkey,
+        kind: CollectorKind,
+    },
+}
+
+#[repr(u8)]
+pub enum CollectorKind {
+    InflationRewards = 0,
+    BlockFees,
+    BlockTips,
+}
+```
+
+#### `UpdateCommission`
+
+The existing `UpdateCommission` instruction (with enum discriminant `5u32`) will
+continue to exist but will continue to only update the inflation rewards
+commission.
+
+#### `UpdateCommissionWithKind`
+
+A new instruction for setting different kinds of commissions will be added to
+the vote program with the enum discriminant of `16u32` little endian encoded in
+the first 4 bytes.
+
+#### `UpdateCollectorAccount`
+
+A new instruction for setting collector accounts will be added to the vote
+program with the enum discriminant value of `17u32` little endian encoded in the
+first 4 bytes.
+
+#### `Authorize`, `AuthorizeChecked`, `AuthorizeWithSeed`, `AuthorizeCheckedWithSeed`
+
+Existing authorize instructions will be processed differently when setting new
+authorized voters. Rather than purging authorized voter entries from the
+`authorized_voters` field that correspond to epochs less than the current epoch,
+only purge entries less than the previous epoch (current epoch - 1). This will
+mean that the `authorized_voters` field can now hold up to 4 entries for the
+epochs in the range `[current_epoch - 1, current_epoch + 2]`. Keeping the
+authorized voter around from the previous epoch will allow the protocol to
+accept votes from both the current and previous authorized voters to make voter
+transitions smoother.
+
+## Impact
+
+This is a prerequisite for implementing block reward distribution in SIMD-0123.
+
+## Security Considerations
+
+What security implications/considerations come with implementing this feature?
+Are there any implementation-specific guidance or pitfalls?
+
+## Drawbacks *(Optional)*
+
+Why should we not do this?
+
+## Backwards Compatibility *(Optional)*
+
+Does the feature introduce any breaking changes? All incompatibilities and
+consequences should be listed.