From 14594217db837c9294e016c527aa5f87d2bc7345 Mon Sep 17 00:00:00 2001
From: Rob Walker <rob@solana.com>
Date: Tue, 28 May 2019 16:01:27 -0700
Subject: [PATCH] undelete votestate etc (#4457)

---
 .../passive-stake-delegation-and-rewards.md   | 119 ++++++++++++++++++
 1 file changed, 119 insertions(+)

diff --git a/book/src/passive-stake-delegation-and-rewards.md b/book/src/passive-stake-delegation-and-rewards.md
index 805253a6e5..d8814d6ed3 100644
--- a/book/src/passive-stake-delegation-and-rewards.md
+++ b/book/src/passive-stake-delegation-and-rewards.md
@@ -39,6 +39,125 @@ program is owned by the staker only.  Lamports stored in this program are the
 stake.  Unlike the current design, this program contains a new field to indicate
 which VoteState program the stake is delegated to.
 
+### VoteState
+
+VoteState is the current state of all the votes the **delegate** has submitted
+to the bank.  VoteState contains the following state information:
+
+* votes - The submitted votes data structure.
+
+* credits - The total number of rewards this vote program has generated over its
+lifetime.
+
+* root\_slot - The last slot to reach the full lockout commitment necessary for
+rewards.
+
+* commission - The commission taken by this VoteState for any rewards claimed by
+staker's StakeState accounts.  This is the percentage ceiling of the reward.
+
+* Account::lamports - The accumulated lamports from the commission.  These do not
+count as stakes.
+
+* `authorized_vote_signer` - Only this identity is authorized to submit votes, and
+this field can only modified by this entity
+
+### VoteInstruction::Initialize
+
+* `account[0]` - RW - The VoteState
+  `VoteState::authorized_vote_signer` is initialized to `account[0]`
+   other VoteState members defaulted
+
+### VoteInstruction::AuthorizeVoteSigner(Pubkey)
+
+* `account[0]` - RW - The VoteState
+  `VoteState::authorized_vote_signer` is set to to `Pubkey`, instruction must by
+   signed by Pubkey
+
+
+### StakeState
+
+A StakeState takes one of two forms, StakeState::Delegate and StakeState::MiningPool.
+
+### StakeState::Delegate
+
+StakeState is the current delegation preference of the **staker**. StakeState
+contains the following state information:
+
+* Account::lamports - The staked lamports.
+
+* `voter_pubkey` - The pubkey of the VoteState instance the lamports are
+delegated to.
+
+* `credits_observed` - The total credits claimed over the lifetime of the
+program.
+
+### StakeState::MiningPool
+
+There are two approaches to the mining pool.  The bank could allow the
+StakeState program to bypass the token balance check, or a program representing
+the mining pool could run on the network.  To avoid a single network wide lock,
+the pool can be split into several mining pools.  This design focuses on using a
+StakeState::MiningPool as the cluster wide mining pools.
+
+* 256 StakeState::MiningPool are initialized, each with 1/256 number of mining pool
+tokens stored as `Account::lamports`.
+
+The stakes and the MiningPool are accounts that are owned by the same `Stake`
+program.
+
+### StakeInstruction::Initialize
+
+* `account[0]` - RW - The StakeState::Delegate instance.
+  `StakeState::Delegate::credits_observed` is initialized to `VoteState::credits`.
+  `StakeState::Delegate::voter_pubkey` is initialized to `account[1]`
+
+* `account[1]` - R - The VoteState instance.
+
+### StakeInstruction::RedeemVoteCredits
+
+The VoteState program and the StakeState programs maintain a lifetime counter
+of total rewards generated and claimed.  Therefore an explicit `Clear`
+instruction is not necessary.  When claiming rewards, the total lamports
+deposited into the StakeState and as validator commission is proportional to
+`VoteState::credits - StakeState::credits_observed`.
+
+
+* `account[0]` - RW - The StakeState::MiningPool instance that will fulfill the
+reward.
+* `account[1]` - RW - The StakeState::Delegate instance that is redeeming votes
+credits.
+* `account[2]` - R - The VoteState instance, must be the same as
+`StakeState::voter_pubkey`
+
+Reward is payed out for the difference between `VoteState::credits` to
+`StakeState::Delgate.credits_observed`, and `credits_observed` is updated to
+`VoteState::credits`.  The commission is deposited into the `VoteState` token
+balance, and the reward is deposited to the `StakeState::Delegate` token balance.  The
+reward and the commission is weighted by the `StakeState::lamports` divided by total lamports staked.
+
+The Staker or the owner of the Stake program sends a transaction with this
+instruction to claim the reward.
+
+Any random MiningPool can be used to redeem the credits.
+
+```rust,ignore
+let credits_to_claim = vote_state.credits - stake_state.credits_observed;
+stake_state.credits_observed = vote_state.credits;
+```
+
+`credits_to_claim` is used to compute the reward and commission, and
+`StakeState::Delegate::credits_observed` is updated to the latest
+`VoteState::credits` value.
+
+### Collecting network fees into the MiningPool
+
+At the end of the block, before the bank is frozen, but after it processed all
+the transactions for the block, a virtual instruction is executed to collect
+the transaction fees.
+
+* A portion of the fees are deposited into the leader's account.
+* A portion of the fees are deposited into the smallest StakeState::MiningPool
+account.
 
 ### Benefits