[Action Required] Signalling Proposal for Emergency v8 Upgrade at 4402000

This proposal is for coordination of the emergency height-gated hardfork upgrade to a v8 binary as already approved in proposals 225 and 226. It is an emergency upgrade hard fork for adding the unpooling feature for UST pools (prop 226) and shifting OSMO incentives off of LUNA and UST related pools (prop 225, 222-224).

This change has been reviewed by a number of validators and experienced cosmos developers. It has had pretty thorough testing on a testnet given the time constraints.

Addendums to unpooling not specified in 226

Unpooling of locks that are superfluid staked will not have slashing risk to avoid the large amount of code complexity implementing this would create and the time it would take to get implement it securely.

Additionally, it seems to have been the intention of prop 226 to include all UST pools, even though some were not included in the prop 226 text. This seems to have been human error on the proposal creators part. Several validators have signalled being in favor of this through several chats.

Upgrade information

This upgrade will not require any synchronous state migrations. The v8.0.0 software version is fully state-compatible with v7.3.0 until the upgrade block 4402000, at which point they diverge. This is the same upgrade mechanism as the Osmosis v6 upgrade (prop 103), used when the IBC channel creation mechanism was broken. The proposed upgrade block height of 4402000 is estimated to be at May 15, 2022, 16:00 UTC (Sunday). All validators, and full node operators should update their software to version v8.0.0 prior to 14:00 UTC (Sunday). After doing so, validators should vote yes on this proposal signalling that they have upgraded. Failure to do so will cause the node to crash – requiring a new node to be resynced, or restored to an earlier height with correct software version via snapshot.

Actionable(s) Every node should upgrade their software version from v7.3.0 to v8.0.0 before the upgrade block height 4402000. If you use cosmovisor, just swap out the binary at upgrades/v7/bin to be v8.0.0, and restart the node. Do check that cosmovisor version says 8.0.0. Upon upgrading their setup and processing a block, every validator should vote yes on this proposal to signal readiness for the upgrade.) Every node should check in at May 15th 2PM (14:00) UTC, and see if 2/3rds of validators have voted yes on the proposal. If so, no further action needed (unless they didn’t upgrade yet, in which case they should). If 2/3rds of the validator voting power has not signalled readiness by 2PM (14:00) UTC, then the upgrade is considered to have not reached agreement, and all nodes should revert their binary back to v7.3.0 until further notice. Furthermore, please review the numbers for the accelerated incentives updates in https://github.com/osmosis-labs/osmosis/pull/1481/files#diff-cafe8a3f5831b68ac650982d09609c545f5990c6a1e6602ea4fb5c9bc04aa3bb, and v8 logic.

Failure case and risks involved

In the case of critical failure where less than two-thirds of voting power updates their nodes, and over 1/3rd of voting power fails to downgrade according the plan, the new chain would fail to start. In this situation we propose coordination by social consensus on the Osmosis Discord - “validators” channel. (https://discord.gg/osmosis)

Governance procedure

Voting Yes vote on this proposal signals a desire to follow this plan and that you applied the upgrade and successfully processed a block after.

Voting No vote on this proposal signals that another plan should be formed.