Community rewards go to reserve if undercollaterized

[karlb]

Simple Summary

Simplify the epoch rewards by never sending funds designated for the community fund to the stable coin reserve instead.

Abstract

A part of the epoch rewards is sent to the community fund. However, in the case of the stable coin reserve being undercollaterized, those funds are sent to the reserve instead. This CIP proposes to never send funds designated for the community fund to the reserve.

Motivation

The stable coins, and with them the underlying reserve, are now maintained by Mento. As an independent entity it should not directly receive funds designated for the community fund.

Additionally the protocol gets simplified by reducing the number of conditional actions.

Specification

During the distribution of epoch rewards it will not be checked if the stable coin reserve is undercollaterized. Instead, funds designated for the community fund will always be send there.

Rationale

See Motivation.

Backwards Compatibility

This changes the consensus rules and therefore needs to be enabled as part of a hardfork.

Implementation

Epoch rewards are distributed in the distributeCommunityRewards function. There epoch_rewards.IsReserveLow is used to decide if the reserve is undercollateralized.

This function and dependent code are to be removed and the funds will be minted for the community fund instead.

This changes the consensus rules and therefore needs to be enabled as part of a hardfork.

Draft PR: celo-org/celo-blockchain#2030

Security Considerations

No security implications are known.

License

This work is licensed under the Apache License, Version 2.0.