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# POSDAO post-merge | ||
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[POSDAO](https://github.com/poanetwork/posdao-contracts) (Proof of Stake Decentralized Autonomous Organization consensus) is a DPOS consensus implemented in Solidity and running within EVM that drives the consensus of Gnosis chain up until the merge. | ||
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All consensus components are de-activated after the merge transition block except the capability to mint native tokens in response to native bridge events. | ||
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This function performs all of the automatic operations needed for controlling numbers revealing by validators, accumulating block producing statistics, starting a new staking epoch, snapshotting staking amounts for the upcoming staking epoch, rewards distributing at the end of a staking epoch, and minting native coins needed for the `erc-to-native` bridge. | ||
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## Specification | ||
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| Name | Value | | ||
| - | - | | ||
| `BLOCK_REWARD_CONTRACT` | TBD | | ||
| `SYSTEM_SENDER` | `0xfffffffffffffffffffffffffffffffffffffffe` | | ||
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Beginning with the merge transition block, execution clients **MUST** include the following payload validation and processing: | ||
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- System-level operation: block rewards call | ||
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**State transition** | ||
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The `reward` function of the `BlockRewardAuRa` contract MUST be called by with a [system call](#system-call) when producing and closing a block **after** any user-level transactions are applied. | ||
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The implementation must construct and execute one system EVM transaction as follows: | ||
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``` | ||
sender: SYSTEM_SENDER | ||
max_priority_fee_per_gas: 0 | ||
max_fee_per_gas: 0 | ||
gas_limit: 18446744073709551615 | ||
destination: WITHDRAWAL_CONTRACT | ||
amount: 0 | ||
payload: PAYLOAD | ||
``` | ||
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System transactions rules are: | ||
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- Gas limit checks are disabled compared to `block.gas_limit - block.gas_used` ([ref](https://github.com/NethermindEth/nethermind/blob/master/src/Nethermind/Nethermind.Evm/TransactionProcessing/TransactionProcessor.cs#L204-L220)). | ||
- Caller balance and nonce checks are disabled. Nonce for system address is not incremented ([ref_1](https://github.com/NethermindEth/nethermind/blob/master/src/Nethermind/Nethermind.Evm/TransactionProcessing/TransactionProcessor.cs#L256-L287), [ref_2](https://github.com/NethermindEth/nethermind/blob/master/src/Nethermind/Nethermind.Evm/TransactionProcessing/TransactionProcessor.cs#L468-L471)). | ||
- Fees are not added ([ref](https://github.com/NethermindEth/nethermind/blob/master/src/Nethermind/Nethermind.Evm/TransactionProcessing/TransactionProcessor.cs#L421-L448)) | ||
- `block.gas_used` is not incremented ([ref](https://github.com/NethermindEth/nethermind/blob/master/src/Nethermind/Nethermind.Evm/TransactionProcessing/TransactionProcessor.cs#L482-L485)) | ||
- If the transaction reverts, or runs out of the gas, the entire block **MUST** be considered invalid. | ||
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`PAYLOAD` is the ABI encoded arguments for a solidity function with ABI: | ||
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```solidity | ||
function reward( | ||
address[] benefactors, | ||
uint16[] kind | ||
) returns( | ||
address[] receiversNative, | ||
uint256[] memory rewardsNative | ||
) | ||
``` | ||
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_[contracts/base/BlockRewardAuRaBase.sol](https://github.com/poanetwork/posdao-contracts/blob/0315e8ee854cb02d03f4c18965584a74f30796f7/contracts/base/BlockRewardAuRaBase.sol#L234)_ | ||
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Where arguments MUST equal to a 1 element list with a single `benefactor` equal to `header.Coinbase` and a single kind of type 0 `RewardAuthor`. | ||
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``` | ||
rewards_call_data = abi_encode("reward", [header.coinbase], [0]) | ||
``` | ||
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The return values of the system call are two lists of equal length. For each tuple item `(receiverNative, rewardNative)` the balance of `receiverNative` must be increased by `rewardNative`. The returned list may be empty. In case of overflow the block MUST be considered invalid. | ||
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