Implements a % cap on staking rewards from era inflation (paritytech…

…#1660)

This PR implements an (optional) cap of the era inflation that is
allocated to staking rewards. The remaining is minted directly into the
[`RewardRemainder`](https://github.com/paritytech/polkadot-sdk/blob/d349b45d086199af7ad0195534e2b913ba9b6827/substrate/frame/staking/src/pallet/mod.rs#L160)
account, which is the treasury pot account in Polkadot and Kusama.

The staking pallet now has a percent storage item, `MaxStakersRewards`,
which defines the max percentage of the era inflation that should be
allocated to staking rewards. The remaining era inflation (i.e.
`remaining = max_era_payout - staking_payout.min(staking_payout *
MaxStakersRewards))` is minted directly into the treasury.

The `MaxStakersRewards` can be set by a privileged origin through the
`set_staking_configs` extrinsic.

**To finish**
- [x] run benchmarks for westend-runtime

Replaces paritytech#1483
Closes paritytech#403

---------

Co-authored-by: command-bot <>

substrate/frame/nomination-pools/test-staking/src/mock.rs

@@ -236,6 +236,7 @@ pub fn new_test_ext() -> sp_io::TestExternalities {
 			pallet_staking::ConfigOp::Noop,
 			pallet_staking::ConfigOp::Noop,
 			pallet_staking::ConfigOp::Noop,
+			pallet_staking::ConfigOp::Noop,
 		));
 	});
 

substrate/frame/staking/src/benchmarking.rs

@@ -855,14 +855,16 @@ benchmarks! {
 		ConfigOp::Set(u32::MAX),
 		ConfigOp::Set(u32::MAX),
 		ConfigOp::Set(Percent::max_value()),
-		ConfigOp::Set(Perbill::max_value())
+		ConfigOp::Set(Perbill::max_value()),
+		ConfigOp::Set(Percent::max_value())
 	) verify {
 		assert_eq!(MinNominatorBond::<T>::get(), BalanceOf::<T>::max_value());
 		assert_eq!(MinValidatorBond::<T>::get(), BalanceOf::<T>::max_value());
 		assert_eq!(MaxNominatorsCount::<T>::get(), Some(u32::MAX));
 		assert_eq!(MaxValidatorsCount::<T>::get(), Some(u32::MAX));
 		assert_eq!(ChillThreshold::<T>::get(), Some(Percent::from_percent(100)));
 		assert_eq!(MinCommission::<T>::get(), Perbill::from_percent(100));
+		assert_eq!(MaxStakedRewards::<T>::get(), Some(Percent::from_percent(100)));
 	}
 
 	set_staking_configs_all_remove {
@@ -873,6 +875,7 @@ benchmarks! {
 		ConfigOp::Remove,
 		ConfigOp::Remove,
 		ConfigOp::Remove,
+		ConfigOp::Remove,
 		ConfigOp::Remove
 	) verify {
 		assert!(!MinNominatorBond::<T>::exists());
@@ -881,6 +884,7 @@ benchmarks! {
 		assert!(!MaxValidatorsCount::<T>::exists());
 		assert!(!ChillThreshold::<T>::exists());
 		assert!(!MinCommission::<T>::exists());
+		assert!(!MaxStakedRewards::<T>::exists());
 	}
 
 	chill_other {
@@ -904,6 +908,7 @@ benchmarks! {
 			ConfigOp::Set(0),
 			ConfigOp::Set(Percent::from_percent(0)),
 			ConfigOp::Set(Zero::zero()),
+			ConfigOp::Noop,
 		)?;
 
 		let caller = whitelisted_caller();

substrate/frame/staking/src/lib.rs

@@ -202,6 +202,12 @@
 //! ```nocompile
 //! remaining_payout = max_yearly_inflation * total_tokens / era_per_year - staker_payout
 //! ```
+//!
+//! Note, however, that it is possible to set a cap on the total `staker_payout` for the era through
+//! the `MaxStakersRewards` storage type. The `era_payout` implementor must ensure that the
+//! `max_payout = remaining_payout + (staker_payout * max_stakers_rewards)`. The excess payout that
+//! is not allocated for stakers is the era remaining reward.
+//!
 //! The remaining reward is send to the configurable end-point [`Config::RewardRemainder`].
 //!
 //! ### Reward Calculation
@@ -897,8 +903,10 @@ impl<Balance: Default> EraPayout<Balance> for () {
 /// Adaptor to turn a `PiecewiseLinear` curve definition into an `EraPayout` impl, used for
 /// backwards compatibility.
 pub struct ConvertCurve<T>(sp_std::marker::PhantomData<T>);
-impl<Balance: AtLeast32BitUnsigned + Clone, T: Get<&'static PiecewiseLinear<'static>>>
-	EraPayout<Balance> for ConvertCurve<T>
+impl<Balance, T> EraPayout<Balance> for ConvertCurve<T>
+where
+	Balance: AtLeast32BitUnsigned + Clone + Copy,
+	T: Get<&'static PiecewiseLinear<'static>>,
 {
 	fn era_payout(
 		total_staked: Balance,
@@ -912,7 +920,7 @@ impl<Balance: AtLeast32BitUnsigned + Clone, T: Get<&'static PiecewiseLinear<'sta
 			// Duration of era; more than u64::MAX is rewarded as u64::MAX.
 			era_duration_millis,
 		);
-		let rest = max_payout.saturating_sub(validator_payout.clone());
+		let rest = max_payout.saturating_sub(validator_payout);
 		(validator_payout, rest)
 	}
 }

substrate/frame/staking/src/pallet/impls.rs

@@ -36,7 +36,7 @@ use frame_system::{pallet_prelude::BlockNumberFor, RawOrigin};
 use pallet_session::historical;
 use sp_runtime::{
 	traits::{Bounded, Convert, One, SaturatedConversion, Saturating, StaticLookup, Zero},
-	Perbill,
+	Perbill, Percent,
 };
 use sp_staking::{
 	currency_to_vote::CurrencyToVote,
@@ -507,9 +507,18 @@ impl<T: Config> Pallet<T> {
 				.saturated_into::<u64>();
 			let staked = Self::eras_total_stake(&active_era.index);
 			let issuance = T::Currency::total_issuance();
+
 			let (validator_payout, remainder) =
 				T::EraPayout::era_payout(staked, issuance, era_duration);
 
+			let total_payout = validator_payout.saturating_add(remainder);
+			let max_staked_rewards =
+				MaxStakedRewards::<T>::get().unwrap_or(Percent::from_percent(100));
+
+			// apply cap to validators payout and add difference to remainder.
+			let validator_payout = validator_payout.min(max_staked_rewards * total_payout);
+			let remainder = total_payout.saturating_sub(validator_payout);
+
 			Self::deposit_event(Event::<T>::EraPaid {
 				era_index: active_era.index,
 				validator_payout,

substrate/frame/staking/src/pallet/mod.rs

@@ -564,6 +564,12 @@ pub mod pallet {
 	#[pallet::getter(fn force_era)]
 	pub type ForceEra<T> = StorageValue<_, Forcing, ValueQuery>;
 
+	/// Maximum staked rewards, i.e. the percentage of the era inflation that
+	/// is used for stake rewards.
+	/// See [Era payout](./index.html#era-payout).
+	#[pallet::storage]
+	pub type MaxStakedRewards<T> = StorageValue<_, Percent, OptionQuery>;
+
 	/// The percentage of the slash that is distributed to reporters.
 	///
 	/// The rest of the slashed value is handled by the `Slash`.
@@ -1717,6 +1723,7 @@ pub mod pallet {
 			max_validator_count: ConfigOp<u32>,
 			chill_threshold: ConfigOp<Percent>,
 			min_commission: ConfigOp<Perbill>,
+			max_staked_rewards: ConfigOp<Percent>,
 		) -> DispatchResult {
 			ensure_root(origin)?;
 
@@ -1736,6 +1743,7 @@ pub mod pallet {
 			config_op_exp!(MaxValidatorsCount<T>, max_validator_count);
 			config_op_exp!(ChillThreshold<T>, chill_threshold);
 			config_op_exp!(MinCommission<T>, min_commission);
+			config_op_exp!(MaxStakedRewards<T>, max_staked_rewards);
 			Ok(())
 		}
 		/// Declare a `controller` to stop participating as either a validator or nominator.

substrate/frame/staking/src/tests.rs

@@ -55,6 +55,7 @@ fn set_staking_configs_works() {
 			ConfigOp::Set(10),
 			ConfigOp::Set(20),
 			ConfigOp::Set(Percent::from_percent(75)),
+			ConfigOp::Set(Zero::zero()),
 			ConfigOp::Set(Zero::zero())
 		));
 		assert_eq!(MinNominatorBond::<Test>::get(), 1_500);
@@ -63,6 +64,7 @@ fn set_staking_configs_works() {
 		assert_eq!(MaxValidatorsCount::<Test>::get(), Some(20));
 		assert_eq!(ChillThreshold::<Test>::get(), Some(Percent::from_percent(75)));
 		assert_eq!(MinCommission::<Test>::get(), Perbill::from_percent(0));
+		assert_eq!(MaxStakedRewards::<Test>::get(), Some(Percent::from_percent(0)));
 
 		// noop does nothing
 		assert_storage_noop!(assert_ok!(Staking::set_staking_configs(
@@ -72,6 +74,7 @@ fn set_staking_configs_works() {
 			ConfigOp::Noop,
 			ConfigOp::Noop,
 			ConfigOp::Noop,
+			ConfigOp::Noop,
 			ConfigOp::Noop
 		)));
 
@@ -83,6 +86,7 @@ fn set_staking_configs_works() {
 			ConfigOp::Remove,
 			ConfigOp::Remove,
 			ConfigOp::Remove,
+			ConfigOp::Remove,
 			ConfigOp::Remove
 		));
 		assert_eq!(MinNominatorBond::<Test>::get(), 0);
@@ -91,6 +95,7 @@ fn set_staking_configs_works() {
 		assert_eq!(MaxValidatorsCount::<Test>::get(), None);
 		assert_eq!(ChillThreshold::<Test>::get(), None);
 		assert_eq!(MinCommission::<Test>::get(), Perbill::from_percent(0));
+		assert_eq!(MaxStakedRewards::<Test>::get(), None);
 	});
 }
 
@@ -1739,6 +1744,74 @@ fn rebond_emits_right_value_in_event() {
 	});
 }
 
+#[test]
+fn max_staked_rewards_default_works() {
+	ExtBuilder::default().build_and_execute(|| {
+		assert_eq!(<MaxStakedRewards<Test>>::get(), None);
+
+		let default_stakers_payout = current_total_payout_for_duration(reward_time_per_era());
+		assert!(default_stakers_payout > 0);
+		start_active_era(1);
+
+		// the final stakers reward is the same as the reward before applied the cap.
+		assert_eq!(ErasValidatorReward::<Test>::get(0).unwrap(), default_stakers_payout);
+
+		// which is the same behaviour if the `MaxStakedRewards` is set to 100%.
+		<MaxStakedRewards<Test>>::set(Some(Percent::from_parts(100)));
+
+		let default_stakers_payout = current_total_payout_for_duration(reward_time_per_era());
+		assert_eq!(ErasValidatorReward::<Test>::get(0).unwrap(), default_stakers_payout);
+	})
+}
+
+#[test]
+fn max_staked_rewards_works() {
+	ExtBuilder::default().nominate(true).build_and_execute(|| {
+		let max_staked_rewards = 10;
+
+		// sets new max staked rewards through set_staking_configs.
+		assert_ok!(Staking::set_staking_configs(
+			RuntimeOrigin::root(),
+			ConfigOp::Noop,
+			ConfigOp::Noop,
+			ConfigOp::Noop,
+			ConfigOp::Noop,
+			ConfigOp::Noop,
+			ConfigOp::Noop,
+			ConfigOp::Set(Percent::from_percent(max_staked_rewards)),
+		));
+
+		assert_eq!(<MaxStakedRewards<Test>>::get(), Some(Percent::from_percent(10)));
+
+		// check validators account state.
+		assert_eq!(Session::validators().len(), 2);
+		assert!(Session::validators().contains(&11) & Session::validators().contains(&21));
+		// balance of the mock treasury account is 0
+		assert_eq!(RewardRemainderUnbalanced::get(), 0);
+
+		let max_stakers_payout = current_total_payout_for_duration(reward_time_per_era());
+
+		start_active_era(1);
+
+		let treasury_payout = RewardRemainderUnbalanced::get();
+		let validators_payout = ErasValidatorReward::<Test>::get(0).unwrap();
+		let total_payout = treasury_payout + validators_payout;
+
+		// max stakers payout (without max staked rewards cap applied) is larger than the final
+		// validator rewards. The final payment and remainder should be adjusted by redestributing
+		// the era inflation to apply the cap...
+		assert!(max_stakers_payout > validators_payout);
+
+		// .. which means that the final validator payout is 10% of the total payout..
+		assert_eq!(validators_payout, Percent::from_percent(max_staked_rewards) * total_payout);
+		// .. and the remainder 90% goes to the treasury.
+		assert_eq!(
+			treasury_payout,
+			Percent::from_percent(100 - max_staked_rewards) * (treasury_payout + validators_payout)
+		);
+	})
+}
+
 #[test]
 fn reward_to_stake_works() {
 	ExtBuilder::default()
@@ -5543,7 +5616,8 @@ fn chill_other_works() {
 				ConfigOp::Remove,
 				ConfigOp::Remove,
 				ConfigOp::Remove,
-				ConfigOp::Remove
+				ConfigOp::Remove,
+				ConfigOp::Noop,
 			));
 
 			// Still can't chill these users
@@ -5564,7 +5638,8 @@ fn chill_other_works() {
 				ConfigOp::Set(10),
 				ConfigOp::Set(10),
 				ConfigOp::Noop,
-				ConfigOp::Noop
+				ConfigOp::Noop,
+				ConfigOp::Noop,
 			));
 
 			// Still can't chill these users
@@ -5585,7 +5660,8 @@ fn chill_other_works() {
 				ConfigOp::Remove,
 				ConfigOp::Remove,
 				ConfigOp::Noop,
-				ConfigOp::Noop
+				ConfigOp::Noop,
+				ConfigOp::Noop,
 			));
 
 			// Still can't chill these users
@@ -5606,7 +5682,8 @@ fn chill_other_works() {
 				ConfigOp::Set(10),
 				ConfigOp::Set(10),
 				ConfigOp::Set(Percent::from_percent(75)),
-				ConfigOp::Noop
+				ConfigOp::Noop,
+				ConfigOp::Noop,
 			));
 
 			// 16 people total because tests start with 2 active one
@@ -5652,6 +5729,7 @@ fn capped_stakers_works() {
 			ConfigOp::Set(max),
 			ConfigOp::Remove,
 			ConfigOp::Remove,
+			ConfigOp::Noop,
 		));
 
 		// can create `max - validator_count` validators
@@ -5722,6 +5800,7 @@ fn capped_stakers_works() {
 			ConfigOp::Remove,
 			ConfigOp::Noop,
 			ConfigOp::Noop,
+			ConfigOp::Noop,
 		));
 		assert_ok!(Staking::nominate(RuntimeOrigin::signed(last_nominator), vec![1]));
 		assert_ok!(Staking::validate(
@@ -5757,6 +5836,7 @@ fn min_commission_works() {
 			ConfigOp::Remove,
 			ConfigOp::Remove,
 			ConfigOp::Set(Perbill::from_percent(10)),
+			ConfigOp::Noop,
 		));
 
 		// can't make it less than 10 now