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[NPoS] Nomination pools: Allow funds to be used for democracy #454

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kianenigma opened this issue Aug 17, 2022 · 22 comments · Fixed by #3905
Closed

[NPoS] Nomination pools: Allow funds to be used for democracy #454

kianenigma opened this issue Aug 17, 2022 · 22 comments · Fixed by #3905
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I5-enhancement An additional feature request.

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@kianenigma
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kianenigma commented Aug 17, 2022

Edited:

Nomination pool currently works by 1) moving the funds from delegator to pool account, and 2) stake from pool account.
What we really want though is, 1) delegate the funds from delegator to pool account, and 2) stake from pool account.

Delegate the funds would imply similar pool functions with a very important difference that instead of funds moving from delegator to pool account, the funds will be locked in delegator's account and can be used for participating in governance voting.

In #408, staking pallet will enable the functionality of delegation of funds to another account (such as pool account) which will enable nomination pools to achieve the delegate and stake strategy. By utilising the delegated funds as if they belong to the pool, the pool account gains the ability to stake these funds as a direct nominator.

@kianenigma
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If this approach works, we should also make it workable for crowdloan funds.

@Ank4n Ank4n self-assigned this Mar 27, 2023
@kianenigma kianenigma changed the title Nomination pools: Allow funds to be used for democracy [NPoS] Nomination pools: Allow funds to be used for democracy Apr 27, 2023
@forgetso
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This is an important issue. Most people want the ease of use associated with nomination pools but are prevented from participating in proposal decisions as a result.

@juangirini juangirini transferred this issue from paritytech/substrate Aug 24, 2023
@the-right-joyce the-right-joyce added I5-enhancement An additional feature request. and removed J0-enhancement labels Aug 25, 2023
@forgetso
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Thanks for the update @kianenigma

@Ank4n
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Ank4n commented Sep 7, 2023

Update: The rough plan is to achieve this in two steps:

  1. Delegation Primitive in staking: Refer issue [NPoS] Staking: Users can delegate their fund to a target which can nominate on their behalf. #408. This will expose a new DelegatedStakeInterface for NominationPool to use. Compared to StakingInterface that allows an account to be a direct nominator, DelegateStakingInterface allows an account (called delegator) to delegate its stake to another account (delegatee). In delegation based staking, the funds are locked in the delegator's account and gives the delegatee the right to use the funds for staking as if it is a direct nominator.

  2. NominationPool switches to use DelegatedStakeInterface: Once enabled for a runtime, this will allow new pool members to first delegate funds to the pool account and then stake. The delegated funds are frozen in user's account and can be used for governance. At this stage, for users whose funds are transferred to the pool account previously can invoke a migrate call that will transfer their share of stake in the pool to their account (tokens will stay frozen).

The first part is actively worked on in this branch. I am currently implementing a way to do a partial_withdraw of unlocking funds in a staking ledger (required for delegated staking) and then will move on to trying to use this with NominationPools pallet to validate the DelegatedStakeInterface makes sense. Both issues can be released in separate PRs though.

@michalisFr
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Since this is already being worked on, this is mostly for the sake of discussion, but let me post an alternative solution.

With the current way that pools work (funds being sent to the pool), pool members could opt in to delegate their funds in the pool to the pool (to keep things simple delegating is binary, either their whole stake or nothing). A new capital variable for the pool would need to be introduced that would keep track of the total delegated balance (from the members that have opted in). Then the pool (through its owner account) would be able to vote in referenda with this capital. The conviction should be limited to None, otherwise pool members may not be able to unbond.

Basically this wouldn't be a delegation per se, but an internal mechanism of pools that allows them to have a capital (not necessarily equal to the pool account's balance) with which the pool can vote in referenda.

Is what I'm describing possible? What would be the benefits and drawback compared to the solution you're working on @Ank4n?

Some pros of the solution you work on that I can think of:

  1. Funds remain in the user's account -> increased "sense" of security and similar experience to solo staking
  2. User can decide for themselves how to vote or delegate their vote
  3. Doesn't centralise voting power in the hands of pool operators (as my proposal does). But given that delegation is encouraged, I consider this more of a con than a pro (see my second point below).

Some pros of my proposed solution:

  1. Simpler implementation (I think)
  2. Users that join a pool some times do it as a simpler solution to staking, even if they can stake solo. These users are not likely to participate in governance. On the other hand, pool operators are likely to vote in referenda and if they carry the votes of their pool's members, this would lead to increased participation. In other words, it would be a simple way for pool members to delegate their votes, even simpler than the current delegation method.

@Ank4n
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Ank4n commented Oct 12, 2023

@michalisFr Sorry for the late response (i am in a retreat currently), but sounds a decent idea. Especially if we make it even simpler and allow all pool funds to be used in governance by the pool operator. A pool can signal at the time of creation whether the pool funds will be used for governance. The only con I see is that delegators can't independently vote on a referenda but that may not necessarily be a bad thing.

@Polkadot-Forum
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This issue has been mentioned on Polkadot Forum. There might be relevant details there:

https://forum.polkadot.network/t/retail-nominators-the-foundation-of-dot-demand-until-polkadots-next-chapter/4252/16

@michalisFr
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@michalisFr Sorry for the late response (i am in a retreat currently), but sounds a decent idea. Especially if we make it even simpler and allow all pool funds to be used in governance by the pool operator. A pool can signal at the time of creation whether the pool funds will be used for governance. The only con I see is that delegators can't independently vote on a referenda but that may not necessarily be a bad thing.

Hey @Ank4n! No worries. Thanks for the response.

This is indeed an even simpler solution. How would you handle existing pools and members though? If this was to be allowed for existing pools (as it should IMO), some members might disagree with their pool's decision, but leaving a pool is not easy.

Anyway, these are implementation details. I don't want to take up more of your time with this. Unless you're actually thinking of going with this model over the one you're already working on :)

@Polkadot-Forum
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This issue has been mentioned on Polkadot Forum. There might be relevant details there:

https://forum.polkadot.network/t/frame-monthly-update/4628/1

@muddlebee
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hey @Ank4n any estimated timeline for this? I'm a community mod at Polkadot discord, we are getting frequent queries about when this will be live.

@Ank4n
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Ank4n commented Jan 19, 2024

hey @Ank4n any estimated timeline for this? I'm a community mod at Polkadot discord, we are getting frequent queries about when this will be live.

Hey @muddlebee, unfortunately this turned out to be a much bigger change and we had some back and forth on how we want to implement this without adding regression to current staking logic. But there is progress on it in this PR and seems to be the approach we are settling on. My current target is to get this to Westend in Q1 but for Kusama and Polkadot, I would say Q2 (with audit).

@Ank4n
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Ank4n commented Jan 19, 2024

Update: Moved it to Q1 2024 in the roadmap.

@Polkadot-Forum
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This issue has been mentioned on Polkadot Forum. There might be relevant details there:

https://forum.polkadot.network/t/monthly-governance-incentive-referendum-1-buffet/5764/2

@sourabhniyogi
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sourabhniyogi commented Jan 20, 2024

hey @Ank4n any estimated timeline for this? I'm a community mod at Polkadot discord, we are getting frequent queries about when this will be live.

Hey @muddlebee, unfortunately this turned out to be a much bigger change and we had some back and forth on how we want to implement this without adding regression to current staking logic. But there is progress on it in this PR and seems to be the approach we are settling on. My current target is to get this to Westend in Q1 but for Kusama and Polkadot, I would say Q2 (with audit).

@Ank4n In your Q1 2024 delivery (exciting, thank you for moving it up!), can you explain what exactly will be locked by a pool operator who votes on referenda with a certain level of convictionVoting, if pool funds can be used for governance?

@Ank4n
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Ank4n commented Jan 31, 2024

hey @Ank4n any estimated timeline for this? I'm a community mod at Polkadot discord, we are getting frequent queries about when this will be live.

Hey @muddlebee, unfortunately this turned out to be a much bigger change and we had some back and forth on how we want to implement this without adding regression to current staking logic. But there is progress on it in this PR and seems to be the approach we are settling on. My current target is to get this to Westend in Q1 but for Kusama and Polkadot, I would say Q2 (with audit).

@Ank4n In your Q1 2024 delivery (exciting, thank you for moving it up!), can you explain what exactly will be locked by a pool operator who votes on referenda with a certain level of convictionVoting, if pool funds can be used for governance?

I am not sure if I understood the question. Once this is live, funds contributed to nomination pool would be held (reserved) in user's own account instead of being transferred to the pool's account. Any pallet such as pallet-conviction-voting that looks at total balance and uses freezes (locks) would be able to reuse these held funds. Did that answer your question?

@Polkadot-Forum
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This issue has been mentioned on Polkadot Forum. There might be relevant details there:

https://forum.polkadot.network/t/decentralized-voices-program-luke-schoen/6111/6

@Polkadot-Forum
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This issue has been mentioned on Polkadot Forum. There might be relevant details there:

https://forum.polkadot.network/t/opengov-improvements-on-the-technical-level/6578/3

@bkchr
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bkchr commented Mar 4, 2024

@Ank4n @gpestana can someone of you give an update on the status of this issue?

@Ank4n
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Ank4n commented Mar 4, 2024

PR here #2680. Its very close to being ready.

github-merge-queue bot pushed a commit that referenced this issue Apr 20, 2024
This is the first PR in preparation for
#454.

## Follow ups:
- #3904.
- #3905.

Overall changes are documented here (lot more visual 😍):
https://hackmd.io/@ak0n/454-np-governance

[Maybe followup](#4217)
with migration of storage item `VirtualStakers` as a bool or enum in
`Ledger`.

## Context
We want to achieve a way for a user (`Delegator`) to delegate their
funds to another account (`Agent`). Delegate implies the funds are
locked in delegator account itself. Agent can act on behalf of delegator
to stake directly on Staking pallet.

The delegation feature is added to Staking via another pallet
`delegated-staking` worked on
[here](#3904).

## Introduces:
### StakingUnchecked Trait
As the name implies, this trait allows unchecked (non-locked) mutation
of staking ledger. These apis are only meant to be used by other pallets
in the runtime and should not be exposed directly to user code path.
Also related: #3888.

### Virtual Bond
Allows other pallets to stake via staking pallet while managing the
locks on these accounts themselves. Introduces another storage
`VirtualStakers` that whitelist these accounts.

We also restrict virtual stakers to set reward account as themselves.
Since the account has no locks, we cannot support compounding of
rewards. Conservatively, we require them to set a separate account
different from the staker. Since these are code managed, it should be
easy for another pallet to redistribute reward and rebond them.

### Slashes
Since there is no actual lock maintained by staking-pallet for virtual
stakers, this pallet does not apply any slashes. It is then important
for pallets managing virtual stakers to listen to slashing events and
apply necessary slashes.
@Polkadot-Forum
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This issue has been mentioned on Polkadot Forum. There might be relevant details there:

https://forum.polkadot.network/t/paritytech-update-for-april/7646/1

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This issue has been mentioned on Polkadot Forum. There might be relevant details there:

https://forum.polkadot.network/t/paritytech-update-for-april-2024/7646/2

@liamaharon liamaharon moved this to In Development in Asset Improvement Board May 6, 2024
github-merge-queue bot pushed a commit that referenced this issue May 15, 2024
This is the second PR in preparation for
#454.

## Also see
- **Precursor** #3889.
- **Follow up** #3905.

Overall changes are documented here (lot more visual 😍):
https://hackmd.io/@ak0n/454-np-governance

## Changes
### Delegation Interface
Provides delegation primitives for staking. 

Introduces two new roles:
- Agent: These are accounts who receive delegation from other accounts
(delegators) and stakes on behalf of them. The funds are held in
delegator accounts.
- Delegator: Accounts who delegate their funds to an agent authorising
them to use it for staking.

Supports
- A way for delegators to add or withdraw delegation to an agent.
- A way for an agent to slash a delegator during a slashing event.

### Pallet Delegated Staking
- Implements `DelegationInterface`.
- Lazy slashing: Any slashes to an Agent is posted in a ledger but not
immediately slashed. The agent can call
`DelegationInterface::delegator_slash` to slash the member and clear the
corresponding slash from its ledger.
- Consumes `StakingInterface` to provide `CoreStaking` features. In
reality, this will be `pallet-staking`.
- Ensures bookkeeping for agent and delegator are correct but leaves the
management of reward and slash logic upto the consumer of this pallet.
- While it does not expose any calls yet, it is written with the intent
of exposing these primitives via extrinsics.

## TODO
- [x] Improve unit tests in the pallet.
- [x] Separate slash reward perbill for rewarding the slash reporters?
- [x] Review if we should add more events.

---------

Co-authored-by: Kian Paimani <5588131+kianenigma@users.noreply.github.com>
Co-authored-by: Gonçalo Pestana <g6pestana@gmail.com>
Co-authored-by: georgepisaltu <52418509+georgepisaltu@users.noreply.github.com>
github-merge-queue bot pushed a commit that referenced this issue May 22, 2024
Third and final PR in the set, closes
#454.

Original PR: #2680

## Precursors:
- #3889.
- #3904.

## Follow up issues/improvements
- #4404

Overall changes are documented here (lot more visual 😍):
https://hackmd.io/@ak0n/454-np-governance

## Summary of various roles 🤯
### Pallet Staking
**Nominator**: An account that directly stakes on `pallet-staking` and
nominates a set of validators.
**Stakers**: Common term for nominators and validators.
Virtual Stakers: Same as stakers, but they are keyless accounts and
their locks are managed by a pallet external to `pallet-staking`.

### Pallet Delegated Staking
**Agent**: An account that receives delegation from other accounts
(delegators) and stakes on their behalf. They are also Virtual Stakers
in `pallet-staking` where `pallet-delegated-staking` manages its locks.
**Delegator**: An account that delegates some funds to an agent.

### Pallet Nomination Pools
**Pool account**: Keyless account of a pool where funds are pooled.
Members pledge their funds towards the pools. These are going to become
`Agent` accounts in `pallet-delegated-staking`.
**Pool Members**: They are individual members of the pool who
contributed funds to it. They are also `Delegator` in
`pallet-delegated-staking`.

## Changes
### Multiple Stake strategies

**TransferStake**: The current nomination pool logic can be considered a
staking strategy where delegators transfer funds to pool and stake. In
this scenario, funds are locked in pool account, and users lose the
control of their funds.

**DelegateStake**: With this PR, we introduce a new staking strategy
where individual delegators delegate fund to pool. `Delegate` implies
funds are locked in delegator account itself. Important thing to note
is, pool does not have funds of its own, but it has authorization from
its members to use these funds for staking.

We extract out all the interaction of pool with staking interface into a
new trait `StakeStrategy`. This is the logic that varies between the
above two staking strategies. We use the trait `StakeStrategy` to
implement above two strategies: `TransferStake` and `DelegateStake`.

### NominationPool
Consumes an implementation of `StakeStrategy` instead of
`StakingInterface`. I have renamed it from `Staking` to `StakeAdapter`
to clarify the difference from the earlier used trait.

To enable delegation based staking in pool, Nomination pool can be
configured as:
```
type StakeAdapter = pallet_nomination_pools::adapter::DelegateStake<Self, DelegatedStaking>;
```

Note that with the following configuration, the changes in the PR are
no-op.
```
type StakeAdapter = pallet_nomination_pools::adapter::TransferStake<Self, Staking>;
```

## Deployment roadmap
Plan to enable this only in Westend. In production runtimes, we can keep
pool to use `TransferStake` which will be no functional change.

Once we have a full audit, we can enable this in Kusama followed by
Polkadot.

## TODO
- [x] Runtime level (Westend) migration for existing nomination pools.
- [x] Permissionless call/ pallet::tasks for claiming delegator funds.
- [x] Add/update benches.
- [x] Migration tests.
- [x] Storage flag to mark `DelegateStake` migration and integrity
checks to not allow `TransferStake` for migrated runtimes.

---------

Signed-off-by: Matteo Muraca <mmuraca247@gmail.com>
Signed-off-by: Alexandru Gheorghe <alexandru.gheorghe@parity.io>
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hitchhooker pushed a commit to ibp-network/polkadot-sdk that referenced this issue Jun 5, 2024
This is the second PR in preparation for
paritytech#454.

## Also see
- **Precursor** paritytech#3889.
- **Follow up** paritytech#3905.

Overall changes are documented here (lot more visual 😍):
https://hackmd.io/@ak0n/454-np-governance

## Changes
### Delegation Interface
Provides delegation primitives for staking. 

Introduces two new roles:
- Agent: These are accounts who receive delegation from other accounts
(delegators) and stakes on behalf of them. The funds are held in
delegator accounts.
- Delegator: Accounts who delegate their funds to an agent authorising
them to use it for staking.

Supports
- A way for delegators to add or withdraw delegation to an agent.
- A way for an agent to slash a delegator during a slashing event.

### Pallet Delegated Staking
- Implements `DelegationInterface`.
- Lazy slashing: Any slashes to an Agent is posted in a ledger but not
immediately slashed. The agent can call
`DelegationInterface::delegator_slash` to slash the member and clear the
corresponding slash from its ledger.
- Consumes `StakingInterface` to provide `CoreStaking` features. In
reality, this will be `pallet-staking`.
- Ensures bookkeeping for agent and delegator are correct but leaves the
management of reward and slash logic upto the consumer of this pallet.
- While it does not expose any calls yet, it is written with the intent
of exposing these primitives via extrinsics.

## TODO
- [x] Improve unit tests in the pallet.
- [x] Separate slash reward perbill for rewarding the slash reporters?
- [x] Review if we should add more events.

---------

Co-authored-by: Kian Paimani <5588131+kianenigma@users.noreply.github.com>
Co-authored-by: Gonçalo Pestana <g6pestana@gmail.com>
Co-authored-by: georgepisaltu <52418509+georgepisaltu@users.noreply.github.com>
hitchhooker pushed a commit to ibp-network/polkadot-sdk that referenced this issue Jun 5, 2024
…tytech#3905)

Third and final PR in the set, closes
paritytech#454.

Original PR: paritytech#2680

## Precursors:
- paritytech#3889.
- paritytech#3904.

## Follow up issues/improvements
- paritytech#4404

Overall changes are documented here (lot more visual 😍):
https://hackmd.io/@ak0n/454-np-governance

## Summary of various roles 🤯
### Pallet Staking
**Nominator**: An account that directly stakes on `pallet-staking` and
nominates a set of validators.
**Stakers**: Common term for nominators and validators.
Virtual Stakers: Same as stakers, but they are keyless accounts and
their locks are managed by a pallet external to `pallet-staking`.

### Pallet Delegated Staking
**Agent**: An account that receives delegation from other accounts
(delegators) and stakes on their behalf. They are also Virtual Stakers
in `pallet-staking` where `pallet-delegated-staking` manages its locks.
**Delegator**: An account that delegates some funds to an agent.

### Pallet Nomination Pools
**Pool account**: Keyless account of a pool where funds are pooled.
Members pledge their funds towards the pools. These are going to become
`Agent` accounts in `pallet-delegated-staking`.
**Pool Members**: They are individual members of the pool who
contributed funds to it. They are also `Delegator` in
`pallet-delegated-staking`.

## Changes
### Multiple Stake strategies

**TransferStake**: The current nomination pool logic can be considered a
staking strategy where delegators transfer funds to pool and stake. In
this scenario, funds are locked in pool account, and users lose the
control of their funds.

**DelegateStake**: With this PR, we introduce a new staking strategy
where individual delegators delegate fund to pool. `Delegate` implies
funds are locked in delegator account itself. Important thing to note
is, pool does not have funds of its own, but it has authorization from
its members to use these funds for staking.

We extract out all the interaction of pool with staking interface into a
new trait `StakeStrategy`. This is the logic that varies between the
above two staking strategies. We use the trait `StakeStrategy` to
implement above two strategies: `TransferStake` and `DelegateStake`.

### NominationPool
Consumes an implementation of `StakeStrategy` instead of
`StakingInterface`. I have renamed it from `Staking` to `StakeAdapter`
to clarify the difference from the earlier used trait.

To enable delegation based staking in pool, Nomination pool can be
configured as:
```
type StakeAdapter = pallet_nomination_pools::adapter::DelegateStake<Self, DelegatedStaking>;
```

Note that with the following configuration, the changes in the PR are
no-op.
```
type StakeAdapter = pallet_nomination_pools::adapter::TransferStake<Self, Staking>;
```

## Deployment roadmap
Plan to enable this only in Westend. In production runtimes, we can keep
pool to use `TransferStake` which will be no functional change.

Once we have a full audit, we can enable this in Kusama followed by
Polkadot.

## TODO
- [x] Runtime level (Westend) migration for existing nomination pools.
- [x] Permissionless call/ pallet::tasks for claiming delegator funds.
- [x] Add/update benches.
- [x] Migration tests.
- [x] Storage flag to mark `DelegateStake` migration and integrity
checks to not allow `TransferStake` for migrated runtimes.

---------

Signed-off-by: Matteo Muraca <mmuraca247@gmail.com>
Signed-off-by: Alexandru Gheorghe <alexandru.gheorghe@parity.io>
Signed-off-by: Andrei Sandu <andrei-mihail@parity.io>
Signed-off-by: Adrian Catangiu <adrian@parity.io>
Signed-off-by: Alexandru Vasile <alexandru.vasile@parity.io>
Signed-off-by: Oliver Tale-Yazdi <oliver.tale-yazdi@parity.io>
Signed-off-by: divdeploy <chenguangxue@outlook.com>
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Signed-off-by: hongkuang <liurenhong@outlook.com>
Co-authored-by: Bastian Köcher <git@kchr.de>
Co-authored-by: gemini132 <164285545+gemini132@users.noreply.github.com>
Co-authored-by: Matteo Muraca <56828990+muraca@users.noreply.github.com>
Co-authored-by: Liam Aharon <liam.aharon@hotmail.com>
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Co-authored-by: Andrei Sandu <54316454+sandreim@users.noreply.github.com>
Co-authored-by: Ross Bulat <ross@parity.io>
Co-authored-by: Serban Iorga <serban@parity.io>
Co-authored-by: s0me0ne-unkn0wn <48632512+s0me0ne-unkn0wn@users.noreply.github.com>
Co-authored-by: Sam Johnson <sam@durosoft.com>
Co-authored-by: Adrian Catangiu <adrian@parity.io>
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Co-authored-by: Bastian Köcher <info@kchr.de>
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Co-authored-by: Tsvetomir Dimitrov <tsvetomir@parity.io>
Co-authored-by: Egor_P <egor@parity.io>
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Co-authored-by: Dmitry Markin <dmitry@markin.tech>
Co-authored-by: Alexandru Vasile <alexandru.vasile@parity.io>
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Co-authored-by: command-bot <>
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Co-authored-by: jimwfs <wqq1479787@163.com>
Co-authored-by: jimwfs <169986508+jimwfs@users.noreply.github.com>
Co-authored-by: polka.dom <polkadotdom@gmail.com>
@Polkadot-Forum
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This issue has been mentioned on Polkadot Forum. There might be relevant details there:

https://forum.polkadot.network/t/any-update-on-voting-while-staking-in-a-pool/8589/3

liuchengxu pushed a commit to liuchengxu/polkadot-sdk that referenced this issue Jun 19, 2024
This is the second PR in preparation for
paritytech#454.

## Also see
- **Precursor** paritytech#3889.
- **Follow up** paritytech#3905.

Overall changes are documented here (lot more visual 😍):
https://hackmd.io/@ak0n/454-np-governance

## Changes
### Delegation Interface
Provides delegation primitives for staking. 

Introduces two new roles:
- Agent: These are accounts who receive delegation from other accounts
(delegators) and stakes on behalf of them. The funds are held in
delegator accounts.
- Delegator: Accounts who delegate their funds to an agent authorising
them to use it for staking.

Supports
- A way for delegators to add or withdraw delegation to an agent.
- A way for an agent to slash a delegator during a slashing event.

### Pallet Delegated Staking
- Implements `DelegationInterface`.
- Lazy slashing: Any slashes to an Agent is posted in a ledger but not
immediately slashed. The agent can call
`DelegationInterface::delegator_slash` to slash the member and clear the
corresponding slash from its ledger.
- Consumes `StakingInterface` to provide `CoreStaking` features. In
reality, this will be `pallet-staking`.
- Ensures bookkeeping for agent and delegator are correct but leaves the
management of reward and slash logic upto the consumer of this pallet.
- While it does not expose any calls yet, it is written with the intent
of exposing these primitives via extrinsics.

## TODO
- [x] Improve unit tests in the pallet.
- [x] Separate slash reward perbill for rewarding the slash reporters?
- [x] Review if we should add more events.

---------

Co-authored-by: Kian Paimani <5588131+kianenigma@users.noreply.github.com>
Co-authored-by: Gonçalo Pestana <g6pestana@gmail.com>
Co-authored-by: georgepisaltu <52418509+georgepisaltu@users.noreply.github.com>
TarekkMA pushed a commit to moonbeam-foundation/polkadot-sdk that referenced this issue Aug 2, 2024
This is the second PR in preparation for
paritytech#454.

## Also see
- **Precursor** paritytech#3889.
- **Follow up** paritytech#3905.

Overall changes are documented here (lot more visual 😍):
https://hackmd.io/@ak0n/454-np-governance

## Changes
### Delegation Interface
Provides delegation primitives for staking. 

Introduces two new roles:
- Agent: These are accounts who receive delegation from other accounts
(delegators) and stakes on behalf of them. The funds are held in
delegator accounts.
- Delegator: Accounts who delegate their funds to an agent authorising
them to use it for staking.

Supports
- A way for delegators to add or withdraw delegation to an agent.
- A way for an agent to slash a delegator during a slashing event.

### Pallet Delegated Staking
- Implements `DelegationInterface`.
- Lazy slashing: Any slashes to an Agent is posted in a ledger but not
immediately slashed. The agent can call
`DelegationInterface::delegator_slash` to slash the member and clear the
corresponding slash from its ledger.
- Consumes `StakingInterface` to provide `CoreStaking` features. In
reality, this will be `pallet-staking`.
- Ensures bookkeeping for agent and delegator are correct but leaves the
management of reward and slash logic upto the consumer of this pallet.
- While it does not expose any calls yet, it is written with the intent
of exposing these primitives via extrinsics.

## TODO
- [x] Improve unit tests in the pallet.
- [x] Separate slash reward perbill for rewarding the slash reporters?
- [x] Review if we should add more events.

---------

Co-authored-by: Kian Paimani <5588131+kianenigma@users.noreply.github.com>
Co-authored-by: Gonçalo Pestana <g6pestana@gmail.com>
Co-authored-by: georgepisaltu <52418509+georgepisaltu@users.noreply.github.com>
TarekkMA pushed a commit to moonbeam-foundation/polkadot-sdk that referenced this issue Aug 2, 2024
…tytech#3905)

Third and final PR in the set, closes
paritytech#454.

Original PR: paritytech#2680

## Precursors:
- paritytech#3889.
- paritytech#3904.

## Follow up issues/improvements
- paritytech#4404

Overall changes are documented here (lot more visual 😍):
https://hackmd.io/@ak0n/454-np-governance

## Summary of various roles 🤯
### Pallet Staking
**Nominator**: An account that directly stakes on `pallet-staking` and
nominates a set of validators.
**Stakers**: Common term for nominators and validators.
Virtual Stakers: Same as stakers, but they are keyless accounts and
their locks are managed by a pallet external to `pallet-staking`.

### Pallet Delegated Staking
**Agent**: An account that receives delegation from other accounts
(delegators) and stakes on their behalf. They are also Virtual Stakers
in `pallet-staking` where `pallet-delegated-staking` manages its locks.
**Delegator**: An account that delegates some funds to an agent.

### Pallet Nomination Pools
**Pool account**: Keyless account of a pool where funds are pooled.
Members pledge their funds towards the pools. These are going to become
`Agent` accounts in `pallet-delegated-staking`.
**Pool Members**: They are individual members of the pool who
contributed funds to it. They are also `Delegator` in
`pallet-delegated-staking`.

## Changes
### Multiple Stake strategies

**TransferStake**: The current nomination pool logic can be considered a
staking strategy where delegators transfer funds to pool and stake. In
this scenario, funds are locked in pool account, and users lose the
control of their funds.

**DelegateStake**: With this PR, we introduce a new staking strategy
where individual delegators delegate fund to pool. `Delegate` implies
funds are locked in delegator account itself. Important thing to note
is, pool does not have funds of its own, but it has authorization from
its members to use these funds for staking.

We extract out all the interaction of pool with staking interface into a
new trait `StakeStrategy`. This is the logic that varies between the
above two staking strategies. We use the trait `StakeStrategy` to
implement above two strategies: `TransferStake` and `DelegateStake`.

### NominationPool
Consumes an implementation of `StakeStrategy` instead of
`StakingInterface`. I have renamed it from `Staking` to `StakeAdapter`
to clarify the difference from the earlier used trait.

To enable delegation based staking in pool, Nomination pool can be
configured as:
```
type StakeAdapter = pallet_nomination_pools::adapter::DelegateStake<Self, DelegatedStaking>;
```

Note that with the following configuration, the changes in the PR are
no-op.
```
type StakeAdapter = pallet_nomination_pools::adapter::TransferStake<Self, Staking>;
```

## Deployment roadmap
Plan to enable this only in Westend. In production runtimes, we can keep
pool to use `TransferStake` which will be no functional change.

Once we have a full audit, we can enable this in Kusama followed by
Polkadot.

## TODO
- [x] Runtime level (Westend) migration for existing nomination pools.
- [x] Permissionless call/ pallet::tasks for claiming delegator funds.
- [x] Add/update benches.
- [x] Migration tests.
- [x] Storage flag to mark `DelegateStake` migration and integrity
checks to not allow `TransferStake` for migrated runtimes.

---------

Signed-off-by: Matteo Muraca <mmuraca247@gmail.com>
Signed-off-by: Alexandru Gheorghe <alexandru.gheorghe@parity.io>
Signed-off-by: Andrei Sandu <andrei-mihail@parity.io>
Signed-off-by: Adrian Catangiu <adrian@parity.io>
Signed-off-by: Alexandru Vasile <alexandru.vasile@parity.io>
Signed-off-by: Oliver Tale-Yazdi <oliver.tale-yazdi@parity.io>
Signed-off-by: divdeploy <chenguangxue@outlook.com>
Signed-off-by: dependabot[bot] <support@github.com>
Signed-off-by: hongkuang <liurenhong@outlook.com>
Co-authored-by: Bastian Köcher <git@kchr.de>
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Co-authored-by: Bastian Köcher <info@kchr.de>
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Co-authored-by: Kutsal Kaan Bilgin <kutsalbilgin@gmail.com>
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Co-authored-by: polka.dom <polkadotdom@gmail.com>
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