Genuine Labs's security upgrage packages

## Genuine Labs's security upgrade packages Dear Terra Classic Community and Validators, Genuine Labs proudly presents this proposal aimed at enhancing the functionality and interoperability of Terra Classic. To unlock numerous benefits for the Terra Classic community, our plan outlines the strategic upgrade to Cosmos SDK 0.47.10, Ibc go v7 and Wasmd 0.45.0. Works to be done included: - Upgrade Wasmd - Upgrade Comet BFT - Upgrade Cosmos SDK - Upgrade dependencies, includes: ibc-go v7, cosmos proto and cometbft-db - Writing upgrade handler - Applied changes on Terra Classic Core - Testnet Upgrade - Mainnet Upgrade ## Proposal ### Cosmos SDK Upgrade Version 0.46.x of the Cosmos SDK has reached its end-of-life status. This means that development efforts have shifted to newer versions, and v0.46.x will no longer receive any updates, including features, improvements, or bug fixes. Upgrading to Cosmos SDK 0.47.10 offers a multitude of advantages for both developers and users. The enhanced security, increased interoperability, developer-friendly improvements, and overall performance benefits make it a compelling choice for anyone building or using applications on the Cosmos network. Works to be done include: - Modify Cosmos SDK 0.47.10 for work with current Terra module (x/oracle) and improve the tax gas process: - Return `sdk.Tx` from `app.runTx()` - Add `IsOracleTx` func - Using `store.NewCommitMultiStoreWithLogger()` for app commit multi store. - Add `blockHeightMiddleware` - Change `DefaultCommitKVStoreCacheSize` from 1000 to 78125 - Change `DefaultIAVLCacheSize` from 500000 to 781250 - Limit validator power to 20%. - Apply API changes in SDK47 to all core modules in Terra Classic - Apply changes in Terra Classic Core - Vesting ### Comet BFT Upgrade The upgrade further optimizes the Byzantine Fault Tolerance (BFT) mechanism, enhancing the network's ability to reach consensus even in adverse conditions and guaranteeing transaction finality. Differences: - Add `IsOracleTx` in `ResponseCheckTx` struct and proto. - Add `oracleTxs` in `CListMempool`. - Add corresponding `addTx`, `removeTx` and `ReapMaxBytesMaxGas` logic for `oracleTxs` - Test case for `OraclePriorityResp` - Modify `UnconfirmedTxs` function ### Wasmd and WasmVM Currently, terra-classic is using wasmvm1.1.x, that version is outdated and no longer receiving any new features or improvements: https://medium.com/cosmwasm/eol-for-cosmwasm-1-0-1-3-22df4b34b13c We should upgrade to a new version to avoid vulnerable security issues. The version most compatible with cosmos-sdk 0.47 are wasmd 0.45.0 and wasmvm 1.5.0 Works to be done include: - Add case `FundCommunityPool` for `EncodeDistributionMsg` in wasmd - Add `FundCommunityPoolMsg` for `DistributionMsg` in wasmvm - LegacyContract to migrate - Compatible wasm keys with old version - Test with the mainnet state, ensure the functionality of contracts. - Ensure the functionality of ci ### Dependencies update and external library When upgrading major components like Cosmos SDK, Comet BFT, Wasmd/Wasmvm in your blockchain system, updating associated dependencies is a crucial step. Updating dependencies ensures smooth compatibility, preventing potential crashes and glitches that disrupt user experience and network stability. The works to be done include: - Migrate `ibc-go` to **v7** - Remove the existence of `tm-db` in cosmos-sdk - Using the appropriate version of `goleveldb` instead of forking - Using new dependencies for cosmos proto ### E2E testing for upgrade E2E testing helps identify critical bugs and flaws before the upgrade happens. This allows developers to fix these issues in a controlled environment, minimizing disruptions and potential damage to the live system. A well-tested upgrade can be rolled out with greater confidence, reducing downtime and inconvenience for users. The E2E testing will include: - E2E for upgrading chain - E2E for migrating contracts ### Upgrade Handler The upgrade handler should include all upgrades above: **1. Cosmos-SDK and Comet BFT upgrade:** - Add store for crisis and consensus module - Add **`MinInitialDepositRatio`** params for gov proposals. - Migrate existing parameters from the deprecated x/params to x/consensus module - Set param key table for params module migration **2. Ibc go upgrade:** - Prune expired tendermint consensus states to save storage space - Register the tendermint client and solo machine client ### Localnet with Mainnet state Running Terra Localnet with mainnet state is recommended to use when having a new feature that must be thoroughly tested before pushing to production. Therefore, having Terra localnet with Mainnet state will push the process faster. ### Members All our 3 members undergoes a KYC process conducted by solidproof.io Verification evidence is available at: - [expertdicer](https://github.com/solidproof/projects/tree/main/2024/expertdicer) - [Anh Minh](https://github.com/solidproof/projects/tree/main/2024/phamminh0811) - [Dong](https://github.com/solidproof/projects/tree/main/2024/DongLieu) ### Development Plan - Cosmos-SDK and Comet BFT upgrade: 1.5 weeks - Wasmd and wasmvm: 1 weeks - Dependencies, Ibc Hooks and PFM: 1 weeks - E2E testing integration : 1 weeks - Testing for upgrade: 1.5 weeks - Testnet and mainet deploy: 2 weeks ## Estimate Budget : 30k ***Note**: This is a Signaling proposal asking for permission to work on the proposed scope of work. Only when all tasks listed above are finished, we will submit for a CP spend proposal.* ## Vote Options - Vote **Yes** - I agree with the outlined proposal and want to see it implemented - Vote **No** - I disagree and do not want this - Vote **Abstain** - I will go with the majority - Vote **No with Veto** - I strongly disagree and want the deposit to be burnt.