cip: prevent auto claiming of rewards. #251
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tac0turtle
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| ## Abstract | ||
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| Currently, when delegators modify their staking positions (e.g., redelegate or undelegate), the distribution module automatically claims all accrued staking rewards. This CIP proposes removing that automatic functionality, thereby allowing users to intentionally choose *when* to claim their rewards. Specifically, the distribution module will no longer auto-claim rewards on delegation-share changes. Instead, it will store the accrued rewards until a user explicitly calls `MsgWithdrawDelegatorReward`. This avoids unintended reward-claiming events that can trigger immediate tax or regulatory obligations. |
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seems like a simple enough change, do we have data on the rate of redelegations or undelegations or how much demand there is for this change? I couldn't think of any firm blockers to this, but its been a while since I dug through the maze that is the distribution and staking module logic.
separate to this limitted change,
This is a simple change, if we wanted something more complex we could propose an LST like design
could we do, or has any sdk based chain done, claimless auto compounding, redelegation, undelegation without creating an LST? presumably this requires a significant change
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yea i can get the data for the last few months.
we have explored this, its a deeper change in the distribution module. I can look into this as an alternative.
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| ## Abstract | ||
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| Currently, when delegators modify their staking positions (e.g., redelegate or undelegate), the distribution module automatically claims all accrued staking rewards. This CIP proposes removing that automatic functionality, thereby allowing users to intentionally choose *when* to claim their rewards. Specifically, the distribution module will no longer auto-claim rewards on delegation-share changes. Instead, it will store the accrued rewards until a user explicitly calls `MsgWithdrawDelegatorReward`. This avoids unintended reward-claiming events that can trigger immediate tax or regulatory obligations. |
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Would this require going back to (or keeping) a fork of the sdk using v0.50?
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we may be able to get away without a fork, but due to the global registry we may need to maintain a small fork.
tac0turtle
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Even independent of taxation, this is just generally a massive UX win. Its very annoying to have to explain or track as is. (Note, spec of this was definitely in large part my fault for not thinking of the UX pain here) |
Co-authored-by: Rootul P <rootulp@gmail.com>
Co-authored-by: Rootul P <rootulp@gmail.com>
Overview
This cip proposes a change to the distribution module, the change stops auto claiming of rewards when modifying delegation shares (delegation, redelgation, unbonding) and makes the movement of funds from the distribution module to a users account explicit.