Consensus Rules

System Parameters

Units

nameSIvaluedescription
1u1u10**01 unit.
2uk1u10**31000 units.
3uM1u10**61000000 units.
4uG1u10**91000000000 units.

Constants

nametypevalueunitdescription
AVAILABLE_DATA_ORIGINAL_SQUARE_MAXuint64shareMaximum number of rows/columns of the original data shares in square layout.
AVAILABLE_DATA_ORIGINAL_SQUARE_TARGETuint64shareTarget number of rows/columns of the original data shares in square layout.
BLOCK_TIMEuint64secondBlock time, in seconds.
CHAIN_IDstring"Celestia"Chain ID. Each chain assigns itself a (unique) ID.
GENESIS_COIN_COUNTuint6410**84u(= 100000000) Number of coins at genesis.
MAX_GRAFFITI_BYTESuint6432byteMaximum size of transaction graffiti, in bytes.
MAX_VALIDATORSuint1664Maximum number of active validators.
NAMESPACE_VERSION_SIZEint1byteSize of namespace version in bytes.
NAMESPACE_ID_SIZEint28byteSize of namespace ID in bytes.
NAMESPACE_SIZEint29byteSize of namespace in bytes.
NAMESPACE_ID_MAX_RESERVEDuint64255Value of maximum reserved namespace (inclusive). 1 byte worth of IDs.
SEQUENCE_BYTESuint644byteThe number of bytes used to store the sequence length in the first share of a sequence
SHARE_INFO_BYTESuint641byteThe number of bytes used for share information
SHARE_RESERVED_BYTESuint644byteThe number of bytes used to store the index of the first transaction in a transaction share. Must be able to represent any integer up to and including SHARE_SIZE - 1.
SHARE_SIZEuint64512byteSize of transaction and blob shares, in bytes.
SignerSizeint20byteThe number of bytes used to store the signer in a share.
STATE_SUBTREE_RESERVED_BYTESuint641byteNumber of bytes reserved to identify state subtrees.
UNBONDING_DURATIONuint32blockDuration, in blocks, for unbonding a validator or delegation.
v1.Versionuint641First version of the application. Breaking changes (hard forks) must update this parameter.
v2.Versionuint642Second version of the application. Breaking changes (hard forks) must update this parameter.
VERSION_BLOCKuint641Version of the Celestia chain. Breaking changes (hard forks) must update this parameter.

Rewards and Penalties

nametypevalueunitdescription
SECONDS_PER_YEARuint6431536000secondSeconds per year. Omit leap seconds.
TARGET_ANNUAL_ISSUANCEuint642 * 10**64u(= 2000000) Target number of coins to issue per year.

Leader Selection

Refer to the CometBFT specifications for proposer selection procedure.

Fork Choice

The Tendermint consensus protocol is fork-free by construction under an honest majority of stake assumption.

If a block has a valid commit, it is part of the canonical chain. If equivocation evidence is detected for more than 1/3 of voting power, the node must halt. See proof of fork accountability.

Block Validity

The validity of a newly-seen block, block, is determined by two components, detailed in subsequent sections:

  1. Block structure: whether the block header is valid, and data in a block is arranged into a valid and matching data root (i.e. syntax).
  2. State transition: whether the application of transactions in the block produces a matching and valid state root (i.e. semantics).

Pseudocode in this section is not in any specific language and should be interpreted as being in a neutral and sane language.

Block Structure

Before executing state transitions, the structure of the block must be verified.

The following block fields are acquired from the network and parsed (i.e. deserialized). If they cannot be parsed, the block is ignored but is not explicitly considered invalid by consensus rules. Further implications of ignoring a block are found in the networking spec.

  1. block.header
  2. block.availableDataHeader
  3. block.lastCommit

If the above fields are parsed successfully, the available data block.availableData is acquired in erasure-coded form as a list of share rows, then parsed. If it cannot be parsed, the block is ignored but not explicitly invalid, as above.

block.header

The block header block.header (header for short) is the first thing that is downloaded from the new block, and commits to everything inside the block in some way. For previous block prev (if prev is not known, then the block is ignored), and previous block header prev.header, the following checks must be true:

availableDataOriginalSquareSize is computed as described here.

  1. header.height == prev.header.height + 1.
  2. header.timestamp > prev.header.timestamp.
  3. header.lastHeaderHash == the header hash of prev.
  4. header.lastCommitHash == the hash of lastCommit.
  5. header.consensusHash == the value computed here.
  6. header.stateCommitment == the root of the state, computed with the application of all state transitions in this block.
  7. availableDataOriginalSquareSize <= AVAILABLE_DATA_ORIGINAL_SQUARE_MAX.
  8. header.availableDataRoot == the Merkle root of the tree with the row and column roots of block.availableDataHeader as leaves.
  9. header.proposerAddress == the leader for header.height.

block.availableDataHeader

The available data header block.availableDataHeader (availableDataHeader for short) is then processed. This commits to the available data, which is only downloaded after the consensus commit is processed. The following checks must be true:

  1. Length of availableDataHeader.rowRoots == availableDataOriginalSquareSize * 2.
  2. Length of availableDataHeader.colRoots == availableDataOriginalSquareSize * 2.
  3. The length of each element in availableDataHeader.rowRoots and availableDataHeader.colRoots must be 32.

block.lastCommit

The last commit block.lastCommit (lastCommit for short) is processed next. This is the Tendermint commit (i.e. polka of votes) for the previous block. For previous block prev and previous block header prev.header, the following checks must be true:

  1. lastCommit.height == prev.header.height.
  2. lastCommit.round >= 1.
  3. lastCommit.headerHash == the header hash of prev.
  4. Length of lastCommit.signatures <= MAX_VALIDATORS.
  5. Each of lastCommit.signatures must be a valid CommitSig
  6. The sum of the votes for prev in lastCommit must be at least 2/3 (rounded up) of the voting power of prev's next validator set.

block.availableData

The block's available data (analogous to transactions in contemporary blockchain designs) block.availableData (availableData for short) is finally processed. The list of share rows is parsed into the actual data structures using the reverse of the process to encode available data into shares; if parsing fails here, the block is invalid.

Once parsed, the following checks must be true:

  1. The commitments of the erasure-coded extended availableData must match those in header.availableDataHeader. Implicitly, this means that both rows and columns must be ordered lexicographically by namespace since they are committed to in a Namespace Merkle Tree.
  2. Length of availableData.intermediateStateRootData == length of availableData.transactionData + length of availableData.payForBlobData + 2. (Two additional state transitions are the begin and end block implicit transitions.)

State Transitions

Once the basic structure of the block has been validated, state transitions must be applied to compute the new state and state root.

For this section, the variable state represents the state tree, with state.accounts[k], state.inactiveValidatorSet[k], state.activeValidatorSet[k], and state.delegationSet[k] being shorthand for the leaf in the state tree in the accounts, inactive validator set, active validator set, and delegation set subtrees with pre-hashed key k. E.g. state.accounts[a] is shorthand for state[(ACCOUNTS_SUBTREE_ID << 8*(32-STATE_SUBTREE_RESERVED_BYTES)) | ((-1 >> 8*STATE_SUBTREE_RESERVED_BYTES) & hash(a))].

State transitions are applied in the following order:

  1. Begin block.
  2. Transactions.
  3. End block.

block.availableData.transactionData

Transactions are applied to the state. Note that transactions mutate the state (essentially, the validator set and minimal balances), while blobs do not.

block.availableData.transactionData is simply a list of WrappedTransactions. For each wrapped transaction in this list, wrappedTransaction, with index i (starting from 0), the following checks must be true:

  1. wrappedTransaction.index == i.

For wrappedTransaction's transaction transaction, the following checks must be true:

  1. transaction.signature must be a valid signature over transaction.signedTransactionData.

Finally, each wrappedTransaction is processed depending on its transaction type. These are specified in the next subsections, where tx is short for transaction.signedTransactionData, and sender is the recovered signing address. We will define a few helper functions:

tipCost(y, z) = y * z
totalCost(x, y, z) = x + tipCost(y, z)

where x above is the amount of coins sent by the transaction authorizer, y above is the tip rate set in the transaction, and z above is the measure of the block space used by the transaction (i.e. size in bytes).

Four additional helper functions are defined to manage the validator queue:

  1. findFromQueue(power), which returns the address of the last validator in the validator queue with voting power greater than or equal to power, or 0 if the queue is empty or no validators in the queue have at least power voting power.
  2. parentFromQueue(address), which returns the address of the parent in the validator queue of the validator with address address, or 0 if address is not in the queue or is the head of the queue.
  3. validatorQueueInsert, defined as
function validatorQueueInsert(validator)
    # Insert the new validator into the linked list
    parent = findFromQueue(validator.votingPower)
    if parent != 0
        if state.accounts[parent].status == AccountStatus.ValidatorBonded
            validator.next = state.activeValidatorSet[parent].next
            state.activeValidatorSet[parent].next = sender
        else
            validator.next = state.inactiveValidatorSet[parent].next
            state.inactiveValidatorSet[parent].next = sender
    else
        validator.next = state.validatorQueueHead
        state.validatorQueueHead = sender
  1. validatorQueueRemove, defined as
function validatorQueueRemove(validator, sender)
    # Remove existing validator from the linked list
    parent = parentFromQueue(sender)
    if parent != 0
        if state.accounts[parent].status == AccountStatus.ValidatorBonded
            state.activeValidatorSet[parent].next = validator.next
            validator.next = 0
        else
            state.inactiveValidatorSet[parent].next = validator.next
            validator.next = 0
    else
        state.validatorQueueHead = validator.next
        validator.next = 0

Note that light clients cannot perform a linear search through a linked list, and are instead provided logarithmic proofs (e.g. in the case of parentFromQueue, a proof to the parent is provided, which should have address as its next validator).

In addition, three helper functions to manage the blob paid list:

  1. findFromBlobPaidList(start), which returns the transaction ID of the last transaction in the blob paid list with finish greater than start, or 0 if the list is empty or no transactions in the list have at least start finish.
  2. parentFromBlobPaidList(txid), which returns the transaction ID of the parent in the blob paid list of the transaction with ID txid, or 0 if txid is not in the list or is the head of the list.
  3. blobPaidListInsert, defined as
function blobPaidListInsert(tx, txid)
    # Insert the new transaction into the linked list
    parent = findFromBlobPaidList(tx.blobStartIndex)
    state.blobsPaid[txid].start = tx.blobStartIndex
    numShares = ceil(tx.blobSize / SHARE_SIZE)
    state.blobsPaid[txid].finish = tx.blobStartIndex + numShares - 1
    if parent != 0
        state.blobsPaid[txid].next = state.blobsPaid[parent].next
        state.blobsPaid[parent].next = txid
    else
        state.blobsPaid[txid].next = state.blobPaidHead
        state.blobPaidHead = txid

We define a helper function to compute F1 entries:

function compute_new_entry(reward, power)
    if power == 0
        return 0
    return reward // power

After applying a transaction, the new state root is computed.

SignedTransactionDataTransfer

bytesPaid = len(tx)

The following checks must be true:

  1. tx.type == TransactionType.Transfer.
  2. totalCost(tx.amount, tx.fee.tipRate, bytesPaid) <= state.accounts[sender].balance.
  3. tx.nonce == state.accounts[sender].nonce + 1.

Apply the following to the state:

state.accounts[sender].nonce += 1

state.accounts[sender].balance -= totalCost(tx.amount, tx.fee.tipRate, bytesPaid)
state.accounts[tx.to].balance += tx.amount

state.activeValidatorSet.proposerBlockReward += tipCost(bytesPaid)

SignedTransactionDataMsgPayForData

bytesPaid = len(tx) + tx.blobSize
currentStartFinish = state.blobsPaid[findFromBlobPaidList(tx.blobStartIndex)]
parentStartFinish = state.blobsPaid[parentFromBlobPaidList(findFromBlobPaidList(tx.blobStartIndex))]

The following checks must be true:

  1. tx.type == TransactionType.MsgPayForData.
  2. totalCost(0, tx.fee.tipRate, bytesPaid) <= state.accounts[sender].balance.
  3. tx.nonce == state.accounts[sender].nonce + 1.
  4. The ceil(tx.blobSize / SHARE_SIZE) shares starting at index tx.blobStartIndex must:
    1. Have namespace tx.blobNamespace.
  5. tx.blobShareCommitment == computed as described here.
  6. parentStartFinish.finish < tx.blobStartIndex.
  7. currentStartFinish.start == 0 or currentStartFinish.start > tx.blobStartIndex + ceil(tx.blobSize / SHARE_SIZE).

Apply the following to the state:

state.accounts[sender].nonce += 1
state.accounts[sender].balance -= totalCost(tx.amount, tx.fee.tipRate, bytesPaid)

blobPaidListInsert(tx, id(tx))

state.activeValidatorSet.proposerBlockReward += tipCost(tx.fee.tipRate, bytesPaid)

SignedTransactionDataCreateValidator

bytesPaid = len(tx)

The following checks must be true:

  1. tx.type == TransactionType.CreateValidator.
  2. totalCost(0, tx.fee.tipRate, bytesPaid) <= state.accounts[sender].balance.
  3. tx.nonce == state.accounts[sender].nonce + 1.
  4. tx.commissionRate.denominator > 0.
  5. tx.commissionRate.numerator <= tx.commissionRate.denominator.
  6. state.accounts[sender].status == AccountStatus.None.

Apply the following to the state:

state.accounts[sender].nonce += 1
state.accounts[sender].balance -= totalCost(0, tx.fee.tipRate, bytesPaid)
state.accounts[sender].status = AccountStatus.ValidatorQueued

validator = new Validator
validator.commissionRate = tx.commissionRate
validator.delegatedCount = 0
validator.votingPower = 0
validator.pendingRewards = 0
validator.latestEntry = PeriodEntry(0)
validator.unbondingHeight = 0
validator.isSlashed = false

validatorQueueInsert(validator)

state.inactiveValidatorSet[sender] = validator

state.activeValidatorSet.proposerBlockReward += tipCost(tx.fee.tipRate, bytesPaid)

SignedTransactionDataBeginUnbondingValidator

bytesPaid = len(tx)

The following checks must be true:

  1. tx.type == TransactionType.BeginUnbondingValidator.
  2. totalCost(0, tx.fee.tipRate, bytesPaid) <= state.accounts[sender].balance.
  3. tx.nonce == state.accounts[sender].nonce + 1.
  4. state.accounts[sender].status == AccountStatus.ValidatorQueued or state.accounts[sender].status == AccountStatus.ValidatorBonded.

Apply the following to the state:

state.accounts[sender].nonce += 1
state.accounts[sender].balance -= totalCost(0, tx.fee.tipRate, bytesPaid)
state.accounts[sender].status = ValidatorStatus.Unbonding

if state.accounts[sender].status == AccountStatus.ValidatorQueued
    validator = state.inactiveValidatorSet[sender]
else if state.accounts[sender].status == AccountStatus.ValidatorBonded
    validator = state.activeValidatorSet[sender]
    delete state.activeValidatorSet[sender]

validator.unbondingHeight = block.height + 1
validator.latestEntry += compute_new_entry(validator.pendingRewards, validator.votingPower)
validator.pendingRewards = 0

validatorQueueRemove(validator, sender)

state.inactiveValidatorSet[sender] = validator

state.activeValidatorSet.activeVotingPower -= validator.votingPower

state.activeValidatorSet.proposerBlockReward += tipCost(tx.fee.tipRate, bytesPaid)

SignedTransactionDataUnbondValidator

bytesPaid = len(tx)

The following checks must be true:

  1. tx.type == TransactionType.UnbondValidator.
  2. totalCost(0, tx.fee.tipRate, bytesPaid) <= state.accounts[sender].balance.
  3. tx.nonce == state.accounts[sender].nonce + 1.
  4. state.accounts[sender].status == AccountStatus.ValidatorUnbonding.
  5. state.inactiveValidatorSet[sender].unbondingHeight + UNBONDING_DURATION < block.height.

Apply the following to the state:

validator = state.inactiveValidatorSet[sender]

state.accounts[sender].nonce += 1
state.accounts[sender].balance -= totalCost(0, tx.fee.tipRate, bytesPaid)
state.accounts[sender].status = AccountStatus.ValidatorUnbonded

state.accounts[sender].balance += validator.commissionRewards

state.inactiveValidatorSet[sender] = validator

if validator.delegatedCount == 0
    state.accounts[sender].status = AccountStatus.None
    delete state.inactiveValidatorSet[sender]

state.activeValidatorSet.proposerBlockReward += tipCost(tx.fee.tipRate, bytesPaid)

SignedTransactionDataCreateDelegation

bytesPaid = len(tx)

The following checks must be true:

  1. tx.type == TransactionType.CreateDelegation.
  2. totalCost(tx.amount, tx.fee.tipRate, bytesPaid) <= state.accounts[sender].balance.
  3. state.accounts[tx.to].status == AccountStatus.ValidatorQueued or state.accounts[tx.to].status == AccountStatus.ValidatorBonded.
  4. tx.nonce == state.accounts[sender].nonce + 1.
  5. state.accounts[sender].status == AccountStatus.None.

Apply the following to the state:

state.accounts[sender].nonce += 1
state.accounts[sender].balance -= totalCost(tx.amount, tx.fee.tipRate, bytesPaid)
state.accounts[sender].status = AccountStatus.DelegationBonded

if state.accounts[tx.to].status == AccountStatus.ValidatorQueued
    validator = state.inactiveValidatorSet[tx.to]
else if state.accounts[tx.to].status == AccountStatus.ValidatorBonded
    validator = state.activeValidatorSet[tx.to]

delegation = new Delegation
delegation.status = DelegationStatus.Bonded
delegation.validator = tx.to
delegation.stakedBalance = tx.amount
delegation.beginEntry = validator.latestEntry
delegation.endEntry = PeriodEntry(0)
delegation.unbondingHeight = 0

validator.latestEntry += compute_new_entry(validator.pendingRewards, validator.votingPower)
validator.pendingRewards = 0
validator.delegatedCount += 1
validator.votingPower += tx.amount

# Update the validator in the linked list by first removing then inserting
validatorQueueRemove(validator, delegation.validator)
validatorQueueInsert(validator)

state.delegationSet[sender] = delegation

if state.accounts[tx.to].status == AccountStatus.ValidatorQueued
    state.inactiveValidatorSet[tx.to] = validator
else if state.accounts[tx.to].status == AccountStatus.ValidatorBonded
    state.activeValidatorSet[tx.to] = validator
    state.activeValidatorSet.activeVotingPower += tx.amount

state.activeValidatorSet.proposerBlockReward += tipCost(tx.fee.tipRate, bytesPaid)

SignedTransactionDataBeginUnbondingDelegation

bytesPaid = len(tx)

The following checks must be true:

  1. tx.type == TransactionType.BeginUnbondingDelegation.
  2. totalCost(0, tx.fee.tipRate, bytesPaid) <= state.accounts[sender].balance.
  3. tx.nonce == state.accounts[sender].nonce + 1.
  4. state.accounts[sender].status == AccountStatus.DelegationBonded.

Apply the following to the state:

state.accounts[sender].nonce += 1
state.accounts[sender].balance -= totalCost(0, tx.fee.tipRate, bytesPaid)
state.accounts[sender].status = AccountStatus.DelegationUnbonding

delegation = state.delegationSet[sender]

if state.accounts[delegation.validator].status == AccountStatus.ValidatorQueued ||
      state.accounts[delegation.validator].status == AccountStatus.ValidatorUnbonding ||
      state.accounts[delegation.validator].status == AccountStatus.ValidatorUnbonded
    validator = state.inactiveValidatorSet[delegation.validator]
else if state.accounts[delegation.validator].status == AccountStatus.ValidatorBonded
    validator = state.activeValidatorSet[delegation.validator]

delegation.status = DelegationStatus.Unbonding
delegation.endEntry = validator.latestEntry
delegation.unbondingHeight = block.height + 1

validator.latestEntry += compute_new_entry(validator.pendingRewards, validator.votingPower)
validator.pendingRewards = 0
validator.delegatedCount -= 1
validator.votingPower -= delegation.stakedBalance

# Update the validator in the linked list by first removing then inserting
# Only do this if the validator is actually in the queue (i.e. bonded or queued)
if state.accounts[delegation.validator].status == AccountStatus.ValidatorBonded ||
      state.accounts[delegation.validator].status == AccountStatus.ValidatorQueued
    validatorQueueRemove(validator, delegation.validator)
    validatorQueueInsert(validator)

state.delegationSet[sender] = delegation

if state.accounts[delegation.validator].status == AccountStatus.ValidatorQueued ||
      state.accounts[delegation.validator].status == AccountStatus.ValidatorUnbonding ||
      state.accounts[delegation.validator].status == AccountStatus.ValidatorUnbonded
    state.inactiveValidatorSet[delegation.validator] = validator
else if state.accounts[delegation.validator].status == AccountStatus.ValidatorBonded
    state.activeValidatorSet[delegation.validator] = validator
    state.activeValidatorSet.activeVotingPower -= delegation.stakedBalance

state.activeValidatorSet.proposerBlockReward += tipCost(tx.fee.tipRate, bytesPaid)

SignedTransactionDataUnbondDelegation

bytesPaid = len(tx)

The following checks must be true:

  1. tx.type == TransactionType.UnbondDelegation.
  2. totalCost(0, bytesPaid) <= state.accounts[sender].balance.
  3. tx.nonce == state.accounts[sender].nonce + 1.
  4. state.accounts[sender].status == AccountStatus.DelegationUnbonding.
  5. state.delegationSet[sender].unbondingHeight + UNBONDING_DURATION < block.height.

Apply the following to the state:

delegation = state.accounts[sender].delegationInfo

state.accounts[sender].nonce += 1
state.accounts[sender].balance -= totalCost(0, tx.fee.tipRate, bytesPaid)
state.accounts[sender].status = None

# Return the delegated stake
state.accounts[sender].balance += delegation.stakedBalance
# Also disperse rewards (commission has already been levied)
state.accounts[sender].balance += delegation.stakedBalance * (delegation.endEntry - delegation.beginEntry)

if state.accounts[delegation.validator].status == AccountStatus.ValidatorQueued ||
      state.accounts[delegation.validator].status == AccountStatus.ValidatorUnbonding
      state.accounts[delegation.validator].status == AccountStatus.ValidatorUnbonded
    validator = state.inactiveValidatorSet[delegation.validator]
else if state.accounts[delegation.validator].status == AccountStatus.ValidatorBonded
    validator = state.activeValidatorSet[delegation.validator]

if validator.delegatedCount == 0 &&
      state.accounts[delegation.validator].status == AccountStatus.ValidatorUnbonded
    state.accounts[delegation.validator].status = AccountStatus.None
    delete state.inactiveValidatorSet[delegation.validator]

delete state.accounts[sender].delegationInfo

state.activeValidatorSet.proposerBlockReward += tipCost(tx.fee.tipRate, bytesPaid)

SignedTransactionDataBurn

bytesPaid = len(tx)

The following checks must be true:

  1. tx.type == TransactionType.Burn.
  2. totalCost(tx.amount, bytesPaid) <= state.accounts[sender].balance.
  3. tx.nonce == state.accounts[sender].nonce + 1.

Apply the following to the state:

state.accounts[sender].nonce += 1
state.accounts[sender].balance -= totalCost(tx.amount, tx.fee.tipRate, bytesPaid)

state.activeValidatorSet.proposerBlockReward += tipCost(tx.fee.tipRate, bytesPaid)

SignedTransactionRedelegateCommission

bytesPaid = len(tx)

The following checks must be true:

  1. tx.type == TransactionType.RedelegateCommission.
  2. totalCost(0, tx.fee.tipRate, bytesPaid) <= state.accounts[sender].balance.
  3. tx.nonce == state.accounts[sender].nonce + 1.
  4. state.accounts[tx.to].status == AccountStatus.DelegationBonded.
  5. state.accounts[sender].status == AccountStatus.ValidatorBonded.

Apply the following to the state:

state.accounts[sender].nonce += 1
state.accounts[sender].balance -= totalCost(0, tx.fee.tipRate, bytesPaid)

delegation = state.delegationSet[tx.to]
validator = state.activeValidatorSet[delegation.validator]

# Force-redelegate pending rewards for delegation
pendingRewards = delegation.stakedBalance * (validator.latestEntry - delegation.beginEntry)
delegation.stakedBalance += pendingRewards
delegation.beginEntry = validator.latestEntry

validator.latestEntry += compute_new_entry(validator.pendingRewards, validator.votingPower)
validator.pendingRewards = 0

# Assign pending commission rewards to delegation
commissionRewards = validator.commissionRewards
delegation.stakedBalance += commissionRewards
validator.commissionRewards = 0

# Update voting power
validator.votingPower += pendingRewards + commissionRewards
state.activeValidatorSet.activeVotingPower += pendingRewards + commissionRewards

state.delegationSet[tx.to] = delegation
state.activeValidatorSet[delegation.validator] = validator

state.activeValidatorSet.proposerBlockReward += tipCost(tx.fee.tipRate, bytesPaid)

SignedTransactionRedelegateReward

bytesPaid = len(tx)

The following checks must be true:

  1. tx.type == TransactionType.RedelegateReward.
  2. totalCost(0, tx.fee.tipRate, bytesPaid) <= state.accounts[sender].balance.
  3. tx.nonce == state.accounts[sender].nonce + 1.
  4. state.accounts[sender].status == AccountStatus.DelegationBonded.
  5. state.accounts[state.delegationSet[sender].validator].status == AccountStatus.ValidatorBonded.

Apply the following to the state:

state.accounts[sender].nonce += 1
state.accounts[sender].balance -= totalCost(0, tx.fee.tipRate, bytesPaid)

delegation = state.delegationSet[sender]
validator = state.activeValidatorSet[delegation.validator]

# Redelegate pending rewards for delegation
pendingRewards = delegation.stakedBalance * (validator.latestEntry - delegation.beginEntry)
delegation.stakedBalance += pendingRewards
delegation.beginEntry = validator.latestEntry

validator.latestEntry += compute_new_entry(validator.pendingRewards, validator.votingPower)
validator.pendingRewards = 0

# Update voting power
validator.votingPower += pendingRewards
state.activeValidatorSet.activeVotingPower += pendingRewards

state.delegationSet[sender] = delegation
state.activeValidatorSet[delegation.validator] = validator

state.activeValidatorSet.proposerBlockReward += tipCost(tx.fee.tipRate, bytesPaid)

Begin Block

At the beginning of the block, rewards are distributed to the block proposer.

Apply the following to the state:

proposer = state.activeValidatorSet[block.header.proposerAddress]

# Compute block subsidy and save to state for use in end block.
rewardFactor = (TARGET_ANNUAL_ISSUANCE * BLOCK_TIME) / (SECONDS_PER_YEAR * sqrt(GENESIS_COIN_COUNT))
blockReward = rewardFactor * sqrt(state.activeValidatorSet.activeVotingPower)
state.activeValidatorSet.proposerBlockReward = blockReward

# Save proposer's initial voting power to state for use in end block.
state.activeValidatorSet.proposerInitialVotingPower = proposer.votingPower

state.activeValidatorSet[block.header.proposerAddress] = proposer

End Block

Apply the following to the state:

account = state.accounts[block.header.proposerAddress]

if account.status == AccountStatus.ValidatorUnbonding
      account.status == AccountStatus.ValidatorUnbonded
    proposer = state.inactiveValidatorSet[block.header.proposerAddress]
else if account.status == AccountStatus.ValidatorBonded
    proposer = state.activeValidatorSet[block.header.proposerAddress]

# Flush the outstanding pending rewards.
proposer.latestEntry += compute_new_entry(proposer.pendingRewards, proposer.votingPower)
proposer.pendingRewards = 0

blockReward = state.activeValidatorSet.proposerBlockReward
commissionReward = proposer.commissionRate.numerator * blockReward // proposer.commissionRate.denominator
proposer.commissionRewards += commissionReward
proposer.pendingRewards += blockReward - commissionReward

# Even though the voting power hasn't changed yet, we consider this a period change.
proposer.latestEntry += compute_new_entry(proposer.pendingRewards, state.activeValidatorSet.proposerInitialVotingPower)
proposer.pendingRewards = 0

if account.status == AccountStatus.ValidatorUnbonding
      account.status == AccountStatus.ValidatorUnbonded
    state.inactiveValidatorSet[block.header.proposerAddress] = proposer
else if account.status == AccountStatus.ValidatorBonded
    state.activeValidatorSet[block.header.proposerAddress] = proposer

At the end of a block, the top MAX_VALIDATORS validators by voting power with voting power greater than zero are or become active (bonded). For newly-bonded validators, the entire validator object is moved to the active validators subtree and their status is changed to bonded. For previously-bonded validators that are no longer in the top MAX_VALIDATORS validators begin unbonding.

Bonding validators is simply setting their status to AccountStatus.ValidatorBonded. The logic for validator unbonding is found here, minus transaction sender updates (nonce, balance, and fee).

This end block implicit state transition is a single state transition, and only has a single intermediate state root associated with it.