SIP-022: Emergency Fix to PoX Stacking Increase

sips/sip-022/sip-022-emergency-pox-fix.md

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+# Preamble
+
+SIP Number: 022
+
+Title: Emergency Fix to PoX Stacking Increases
+
+Authors:
+    Aaron Blankstein <[email protected]>,
+    Brice Dobry <[email protected]>,
+    Friedger Müffke <[email protected]>,
+    Jude Nelson <[email protected]>,
+    Pavitthra Pandurangan <[email protected]>,
+
+Consideration: Technical, Governance
+
+Type: Consensus
+
+Status: Draft
+
+Created: 19 April 2023
+
+License: BSD 2-Clause
+
+Sign-off: 
+
+Discussions-To: https://github.com/stacksgov/sips
+
+# Abstract
+
+On 19 April 2023, it was discovered that there was a bug in the PoX smart
+contract which would allow a user to claim that they have stacked far, far more
+STX than they had locked.  Exploiting this bug both allows the user to increase
+their PoX reward slot allotment, while also driving up the stacking minimum.
+Furthermore, it creates the conditions for a network-wide crash:  if the total
+amount of STX stacked as reported by the PoX smart contract were to ever exceed
+the total amount of liquid STX, then the node would crash into an irrecoverable
+state.  This bug has already been triggered in the wild.
+
+This SIP proposes **two immediate consensus-breaking changes** that both prevents this bug
+from being triggered in subsequent reward cycles, and replaces the current PoX
+implementation with a new PoX implementation without the bug.  If ratified, this
+SIP would activate two hard forks 200 Bitcoin blocks prior to the start of
+reward cycles #58 and #59.
+
+This SIP would constitute two consensus-rules version bumps.  During cycle #58, the system 
+version would be Stacks 2.2.  During and after cycle #59, the system would be
+Stacks 2.3.
+
+# Introduction
+
+[SIP-015](./sips/sip-015/sip-015-network-upgrade.md) proposed a new PoX smart
+contract, `pox-2`, which included a new public function `stack-increase`.  This
+function allows a user to increase the amount of STX locked for PoX while the
+account has locked STX.  The `stack-increase` function calls an internal function
+`increase-reward-cycle-entry` to update the PoX contract's data space to record
+the increase.
+
+The `increase-reward-cycle-entry` function has a bug in this code path.  The bug
+itself is annotated with comment lines starting with "(BUG)".
+
+```clarity
+(let ((existing-entry (unwrap-panic (map-get? reward-cycle-pox-address-list { reward-cycle: reward-cycle, index: reward-cycle-index })))
+      (existing-total (unwrap-panic (map-get? reward-cycle-total-stacked { reward-cycle: reward-cycle })))
+      (total-ustx (+ (get total-ustx existing-total) (get add-amount data))))
+    ;; stacker must match
+    (asserts! (is-eq (get stacker existing-entry) (some (get stacker data))) none)
+    ;; update the pox-address list
+    (map-set reward-cycle-pox-address-list
+             { reward-cycle: reward-cycle, index: reward-cycle-index }
+             { pox-addr: (get pox-addr existing-entry),
+               ;; (BUG) ;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
+               ;; (BUG) `total-ustx` is the amount of uSTX locked in this cycle, not
+               ;; (BUG) the stacker's total amount of uSTX. This value ought to be
+               ;; (BUG) `(+ (get total-ustx existing-entry) (get add-amount data))`
+               ;; (BUG) ;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
+               total-ustx: total-ustx,
+               stacker: (some (get stacker data)) })
+    ;; update the total
+    (map-set reward-cycle-total-stacked
+             { reward-cycle: reward-cycle }
+             { total-ustx: total-ustx })
+    (some { first-cycle: first-cycle,
+            reward-cycle: (+ u1 reward-cycle),
+            stacker: (get stacker data),
+            add-amount: (get add-amount data) })))))
+```
+
+The bug is reachable by any solo Stacker who calls `stack-increase`.  Any solo
+Stacker who increases their total STX locked will erroneously set the amount of
+uSTX backing their PoX address to be equal to the current total number of uSTX
+locked in this cycle (the value `total-ustx`), instead of the sum of their
+current locked uSTX amount and their added amount.  The act of triggering this
+bug is an unavoidable consequence of calling the `stack-increase` function --
+individuals who call `stack-increase` are not thought to be deliberately
+exploiting the system.
+
+This bug was first triggered in the wild by Stacks transaction
+`20e708e250bad3fb5d5ab84a70365c3c1cf0520c7a9f67cd5ff6b9fa94335ea5`.
+
+The immediate consequences for PoX of this bug being triggered are as follows:
+
+* The total STX locked to the PoX address owned by the caller of `stack-increase`
+  will be potentially higher than the amount of STX that the caller possesses.
+The caller will receive PoX payouts _as if_ they had locked that much STX.  So,
+the caller receives undue BTC.
+
+* The stacking threshold is raised to account for the PoX contract's reported
+  increase in STX locked.
+
+Similar consequences are expected when a Stacker contributes to two different PoX addresses and 
+at least one PoX address would benefit from auto-unlocking. This behavior has not been seen in the wild.
+
+Furthermore, if this bug is triggered enough times, the Stacks network will crash.  This is
+because of a runtime assertion in the PoX reward set calculation logic that
+verifies that the total locked STX does not exceed the total liquid STX.  This
+would no longer be true due to this bug.  The offending assertion is detailed
+below:
+
+```rust
+pub fn get_reward_threshold_and_participation(
+    pox_settings: &PoxConstants,
+    addresses: &[RawRewardSetEntry],
+    liquid_ustx: u128,
+) -> (u128, u128) {
+    let participation = addresses
+        .iter()
+        .fold(0, |agg, entry| agg + entry.amount_stacked);
+
+    assert!(
+        participation <= liquid_ustx,
+        "CORRUPTION: More stacking participation than liquid STX"
+    );
+```
+
+The `RawRewardSetEntry` data are pulled directly from the
+`reward-cycle-pox-address-list` data map, and the `.amount_stacked` field is
+equal to the `total-ustx` field that was erroneously set in `stack-increase`.
+
+Considering these consequences with respect to the [draft blockchain catastrophic
+failure and recovery guidelines](https://github.com/stacksgov/sips/pull/10),
+this bug would be categorized as requiring an _immediate_ hard fork to rectify.
+The network has not yet crashed, but it is in imminent danger of crashing and
+there is insufficient time to execute a Stacker-based SIP vote as has been customary for
+past hard forks.  This SIP instead proposes that this hard fork activate at the
+start of the next reward cycle (#58) at the time of this writing.
+
+There is less than one reward cycle remaining to fix this
+problem, and yet a Stacker vote would require at least one complete reward cycle
+to carry out a vote (not accounting for any additional time required for
+sending out adequate public communications and tabulating the vote afterwards).
+A subsequent hard fork to re-enable PoX would have the effect of restoring
+Stacker voting.
+
+# Specification
+
+Given the lack of time to conduct a Stacker vote to activate this SIP, the
+proposed fix in this SIP is as parsimonious and discreet as possible.  It will
+execute as a set of **two hard forks**.
+
+The first hard fork, which activates before the start of reward cycle #58, will disable PoX beginning with cycle #58.
+The `pox-2` contract will be considered defunct, just as the pre-2.1 `pox`
+contract is.  This hard fork would do the following:
+
+* Prevent all stacking functions from being called in `pox-2`.  The `pox-2`
+  contract would be considered defunct, like the `pox` contract is now.
+
+* Set the minimum required block-commit memo bits to `0x07`.  All block-commits
+  after the Bitcoin block activation height must have a memo value of at least
+`0x07`.  This ensures that miners that do not upgrade from Stacks 2.1 will not
+be able to mine in Stacks 2.2.
+
+* Set the mainnet peer network version bits to `0x18000007`.  This ensures that follower
+  nodes that do not upgrade to Stacks 2.2 will not be able to talk to Stacks
+2.2 nodes.
+
+* Set the testnet peer network version bits to `0xfacade07`.  This ensures that
+  testnet follower nodes that do not upgrade to Stacks 2.2 will not be able to
+talk to Stacks 2.2 nodes.
+
+The second hard fork will instantiate a new PoX
+implementation `pox-3`. The `pox-3` contract code will:
+
+* Fix the aforementioned `stacks-increase` bug.
+
+* Prevent Stackers from contributing to two or more PoX addresses. In particular,
+    * Add a `delegated-to` field in the `stacking-state` data map, so that the 
+    `stacking-state` entry for a PoX user will indicate the principal to which 
+    their STX are delegated (if they are using delegated stacking).
+
+    * Add checks to the delegated stacking public functions that validate the 
+    `delegated-to` field in the Stacker's `stacking-state` map entry.
+
+* Set the minimum required block-commit memo bits to `0x08`.  All block-commits
+  after the Bitcoin block activation height must have a memo value of at least
+`0x08`.  This ensures that miners that do not upgrade from Stacks 2.2 will not
+be able to mine in Stacks 2.3.
+
+* Set the mainnet peer network version bits to `0x18000008`.  This ensures that follower
+  nodes that do not upgrade to Stacks 2.3 will not be able to talk to Stacks
+2.3 nodes.
+
+* Set the testnet peer network version bits to `0xfacade08`.  This ensures that
+  testnet follower nodes that do not upgrade to Stacks 2.3 will not be able to
+talk to Stacks 2.3 nodes.
+
+## Alternative Approaches Considered
+
+It is unusual that this SIP proposes two hard forks in rapid succession without 
+a Stacker-based vote for activating the new rules.  The
+reason for this is because PoX must first be disabled prior to the start of
+reward cycle #58 in order to avert a network-wide
+crash.  This cannot be delayed, but there is insufficient time to prepare `pox-3`
+or even execute a Stacker-based vote before this bug must be addressed.
+Therefore, the first hard fork must happen immediately.
+
+A second hard fork is necessary to instantiate `pox-3`, which must also happen
+as soon as possible (no more than one reward cycle later) in order to restore
+critical functionality to the Stacks blockchain.  Because PoX would be disabled
+before `pox-3` would activate, there would not exist a means of carrying out a
+Stacker-based vote to upgrade the system (as had been the case in all prior
+hard forks).  Beyond receiving a BTC yield, **the lack of a functioning PoX contract
+prevents consensus-level SIPs from being voted upon**, which necessitates an
+expedient restoration.
+
+A less-disruptive alternative approach of repairing the
+`reward-cycle-pox-address-list` data map was considered.  This would have only
+required a single hard fork, and no disruption of PoX payouts (however,
+`stack-increase` would have been disabled).  This approach was ultimately dropped
+because of the interactions between delegated stacking and solo stacking -- it
+would not be possible to retroactively compute the correct values for the
+`reward-cycle-pox-address-list` data map.  This, in turn, meant that any repair
+tactic would require the node to calculate the correct values for
+`reward-cycle-pox-address-list` as the blocks in reward cycle #57 were
+processed, which in turn meant that nodes would need to boot from genesis to
+derive the correct data with which to repair the data map at the start of reward
+cycle #58.  There is insufficient time to implement, test, and deploy this
+approach.
+
+# Related Work
+
+Consensus bugs requiring immediate attention such as this
+have been detected and fixed in other blockchains.  In the
+absence of a means of gathering user comments on proposed fixes, the task of
+activating these bugfixes has fallen to miners, exchanges, and node runners.  As
+long as sufficiently many participating entities upgrade, then a chain split is
+avoided and the fixed blockchain survives.  A prominent example was Bitcoin
+[CVE-2010-5139](https://www.cvedetails.com/cve/CVE-2010-5139/), in which a
+specially-crafted Bitcoin transaction could mint arbitrarily many BTC well above
+the 21 million cap.  The [developer
+response](https://bitcointalk.org/index.php?topic=823.0) was to quickly release
+a patched version of Bitcoin and rally enough miners and users to upgrade.  In a
+matter of hours, the canonical Bitcoin chain ceased to include any transactions
+that minted too much BTC.
+
+# Backwards Compatibility
+
+There are no changes to the chainstate database schemas in this SIP.  Everyone
+who runs a Stacks 2.1 node today will be able to run a Stacks 2.2 node off of
+their existing chainstates at the start of reward cycle #58,
+as well as a Stacks 2.3 node off of a Stacks 2.2 chainstate at the start of
+reward cycle #59.
+
+Stacks 2.2 nodes will not interact with Stacks 2.1 nodes on the peer network
+after the Bitcoin block activation height passes.  In addition, Stacks 2.2 nodes
+will ignore block-commits from Stacks 2.1 nodes.  Similar changes were made for
+Stacks 2.05 and Stacks 2.1 to ensure that the new network cleanly separates from
+stragglers still following the old rules.  This also applies to Stacks 2.3 nodes
+and Stacks 2.2 nodes.
+
+# Activation
+
+This SIP shall be considered Activated if the Stacks 2.3 network is live at the
+start of reward cycle #59.
+
+The Bitcoin block activation height for the first hard fork will need to pass prior to the selection of
+the PoX anchor block for reward cycle #58 (Bitcoin block height 787851).  This
+SIP proposes Bitcoin block height 787651, which is 200 Bitcoin blocks prior.  In
+other words, the Bitcoin block that is mined 100 blocks prior to the start of
+the prepare phase for reward cycle #58 shall be the activation height.
+
+The second hard fork will take effect 200 Bitcoin blocks prior to the start of reward cycle #59,
+which is Bitcoin block height 789751.
+
+The node software for Stacks 2.2 and 2.3 shall be merged to the `master` branch of the
+reference implementation no later than three days prior to the activation
+height.  This means that everyone shall have at least three days to upgrade
+their Stacks 2.1 nodes to Stacks 2.2, and at least three days to upgrade from
+2.2 to 2.3.
+
+# Reference Implementation
+
+The reference implementation of this SIP can be found in the
+`feat/sip-022-pox-disable` branch of
+the Stacks blockchain reference implementation.  It is available at
+https://github.com/stacks-network/stacks-blockchain.