feat: 🔧 prevent jailing high stake validators

app/app.go

@@ -528,6 +528,7 @@ func New(
 		app.GetSubspace(valsetmoduletypes.ModuleName),
 		app.StakingKeeper,
 		minimumPigeonVersion,
+		sdk.DefaultPowerReduction,
 	)
 
 	consensusRegistry := consensusmodulekeeper.NewRegistry()

testutil/keeper/valset.go

@@ -44,6 +44,7 @@ func ValsetKeeper(t testing.TB) (*keeper.Keeper, sdk.Context) {
 		paramsSubspace,
 		nil,
 		"v1.4.0",
+		sdk.DefaultPowerReduction,
 	)
 
 	k.EvmKeeper = mocks.NewEvmKeeper(t)

x/gravity/keeper/keeper.go

@@ -9,6 +9,7 @@ import (
 	"strconv"
 	"strings"
 
+	sdkmath "cosmossdk.io/math"
 	tmbytes "github.com/cometbft/cometbft/libs/bytes"
 	"github.com/cometbft/cometbft/libs/log"
 	"github.com/cosmos/cosmos-sdk/codec"
@@ -33,7 +34,7 @@ type Keeper struct {
 	bankKeeper             types.BankKeeper
 	SlashingKeeper         types.SlashingKeeper
 	DistributionKeeper     types.DistributionKeeper
-	PowerReduction         sdk.Int
+	PowerReduction         sdkmath.Int
 	hooks                  types.GravityHooks
 	ReceiverModuleAccounts map[string]string
 	SenderModuleAccounts   map[string]string
@@ -49,7 +50,7 @@ func NewKeeper(
 	bankKeeper types.BankKeeper,
 	slashingKeeper types.SlashingKeeper,
 	distributionKeeper types.DistributionKeeper,
-	powerReduction sdk.Int,
+	powerReduction sdkmath.Int,
 	receiverModuleAccounts map[string]string,
 	senderModuleAccounts map[string]string,
 ) Keeper {

x/paloma/keeper/keeper_integration_test.go

@@ -1,6 +1,7 @@
 package keeper_test
 
 import (
+	"fmt"
 	"math/big"
 	"testing"
 
@@ -39,7 +40,9 @@ var _ = Describe("jailing validators with missing external chain infos", func()
 	})
 
 	BeforeEach(func() {
-		vals = testutil.GenValidators(3, 100)
+		// Generate enough validators to ensure jailing is not prevented due to high
+		// amount of stake in network.
+		vals = testutil.GenValidators(10, 100)
 
 		for _, val := range vals {
 			a.StakingKeeper.SetValidator(ctx, val)
@@ -52,6 +55,7 @@ var _ = Describe("jailing validators with missing external chain infos", func()
 			// val[0] has everything
 			// val[1] has only one chain
 			// val[2] doesn't have anything
+			// All other vals have everything
 			err := a.ValsetKeeper.AddExternalChainInfo(ctx, vals[0].GetOperator(), []*valsettypes.ExternalChainInfo{
 				{
 					ChainType:        "evm",
@@ -76,6 +80,23 @@ var _ = Describe("jailing validators with missing external chain infos", func()
 				},
 			})
 			Expect(err).To(BeNil())
+			for i, v := range vals[3:] {
+				err := a.ValsetKeeper.AddExternalChainInfo(ctx, v.GetOperator(), []*valsettypes.ExternalChainInfo{
+					{
+						ChainType:        "evm",
+						ChainReferenceID: "c1",
+						Address:          fmt.Sprintf("abc%d", i+3),
+						Pubkey:           []byte(fmt.Sprintf("abc%d", i+3)),
+					},
+					{
+						ChainType:        "evm",
+						ChainReferenceID: "c2",
+						Address:          fmt.Sprintf("abcd%d", i+3),
+						Pubkey:           []byte(fmt.Sprintf("abcd%d", i+3)),
+					},
+				})
+				Expect(err).To(BeNil())
+			}
 		})
 
 		BeforeEach(func() {

x/valset/keeper/keep_alive_test.go

@@ -19,8 +19,10 @@ func TestJailingInactiveValidators(t *testing.T) {
 	valBuild := func(id int, toBeJailed bool) (*mocks.StakingValidatorI, sdk.ValAddress) {
 		val := sdk.ValAddress(fmt.Sprintf("validator_%d", id))
 		vali := mocks.NewStakingValidatorI(t)
+		stake := sdk.DefaultPowerReduction
 		ms.StakingKeeper.On("Validator", mock.Anything, val).Return(vali)
 		vali.On("IsJailed").Return(false)
+		vali.On("GetConsensusPower", k.powerReduction).Return(stake.Int64())
 		vali.On("IsBonded").Return(true)
 		vali.On("GetOperator").Return(val)
 		vali.On("GetStatus").Return(stakingtypes.Bonded)

x/valset/keeper/keeper.go

@@ -24,20 +24,21 @@ import (
 const (
 	snapshotIDKey                   = "snapshot-id"
 	maxNumOfAllowedExternalAccounts = 100
+	cJailingNetworkShareProtection  = 0.25
 )
 
 type Keeper struct {
-	cdc        codec.BinaryCodec
-	storeKey   storetypes.StoreKey
-	memKey     storetypes.StoreKey
-	paramstore paramtypes.Subspace
-	staking    types.StakingKeeper
-	ider       keeperutil.IDGenerator
-	EvmKeeper  types.EvmKeeper
-
+	EvmKeeper         types.EvmKeeper
 	SnapshotListeners []types.OnSnapshotBuiltListener
 
+	cdc                  codec.BinaryCodec
+	ider                 keeperutil.IDGenerator
+	memKey               storetypes.StoreKey
 	minimumPigeonVersion string
+	paramstore           paramtypes.Subspace
+	powerReduction       sdkmath.Int
+	staking              types.StakingKeeper
+	storeKey             storetypes.StoreKey
 }
 
 func NewKeeper(
@@ -47,6 +48,7 @@ func NewKeeper(
 	ps paramtypes.Subspace,
 	staking types.StakingKeeper,
 	minimumPigeonVersion string,
+	powerReduction sdkmath.Int,
 ) *Keeper {
 	// set KeyTable if it has not already been set
 	if !ps.HasKeyTable() {
@@ -60,6 +62,7 @@ func NewKeeper(
 		paramstore:           ps,
 		staking:              staking,
 		minimumPigeonVersion: minimumPigeonVersion,
+		powerReduction:       powerReduction,
 	}
 	k.ider = keeperutil.NewIDGenerator(keeperutil.StoreGetterFn(func(ctx sdk.Context) sdk.KVStore {
 		return prefix.NewStore(ctx.KVStore(k.storeKey), []byte("IDs"))
@@ -525,16 +528,26 @@ func (k Keeper) Jail(ctx sdk.Context, valAddr sdk.ValAddress, reason string) err
 	if val.IsJailed() {
 		return ErrValidatorAlreadyJailed.Format(valAddr.String())
 	}
+
+	consensusPower := val.GetConsensusPower(k.powerReduction)
+	totalConsensusPower := int64(0)
 	count := 0
 	k.staking.IterateValidators(ctx, func(_ int64, val stakingtypes.ValidatorI) bool {
 		if val.IsBonded() && !val.IsJailed() {
+			totalConsensusPower += val.GetConsensusPower(k.powerReduction)
 			count++
 		}
 		return false
 	})
+
 	if count == 1 {
 		return ErrCannotJailValidator.Format(valAddr).WrapS("number of active validators would be zero then")
 	}
+
+	if float64(consensusPower)/float64(totalConsensusPower) > cJailingNetworkShareProtection {
+		return ErrCannotJailValidator.Format(valAddr).WrapS("validator stake holds over %v percent of entire network", cJailingNetworkShareProtection)
+	}
+
 	cons, err := val.GetConsAddr()
 	if err != nil {
 		return err

x/valset/keeper/keeper_integration_test.go

@@ -95,5 +95,19 @@ var _ = Describe("jaling validators", func() {
 				Expect(err).To(MatchError(keeper.ErrValidatorAlreadyJailed))
 			})
 		})
+
+		Context("jailing validator with too much network stake", func() {
+			BeforeEach(func() {
+				By("change validator stake")
+				validators := testutil.GenValidators(1, 100)
+				a.StakingKeeper.SetValidator(ctx, validators[0])
+				a.StakingKeeper.SetValidatorByConsAddr(ctx, validators[0])
+				val = validators[0].GetOperator()
+			})
+			It("returns an error", func() {
+				err := a.ValsetKeeper.Jail(ctx, val, "i am bored")
+				Expect(err).To(MatchError(keeper.ErrCannotJailValidator))
+			})
+		})
 	})
 })

x/valset/keeper/setup_test.go

@@ -56,6 +56,7 @@ func newValsetKeeper(t testing.TB) (*Keeper, mockedServices, sdk.Context) {
 		paramsSubspace,
 		ms.StakingKeeper,
 		"v1.4.0",
+		sdk.DefaultPowerReduction,
 	)
 
 	k.EvmKeeper = ms.EvmKeeper