2/17/2022
Re-posted from Discord
A contract bug that caused rewards on L2 to be lower than expected was recently brought to the core team’s attention (thank you to @vires-in-numeris and @chrishobcroft). At no point were user funds at risk, the bug was not exploitable, the only impact the bug had was to cause rewards to be lower than expected and a fix for the bug has been deployed. Starting from the next round (2470), the rewards on L2 should be calculated correctly.
The main problem was that the rewards that could be minted in a round were being calculated based on the L2 token supply when it should’ve been calculated based on the global token supply (includes both the L2 token supply and the L1 circulating token supply). The end result was that the calculated rewards were lower than what they should have been - the rewards on L1 were always calculated based on the global token supply (which was all on L1 at the time). The fix for the bug was to deploy an updated Minter contract [2] that calculated the rewards based on the global token supply.
The deployment of this bug fix is a part of the governance failsafes procedure described in [2]. While this bug did not cause user funds to be at risk of direct theft, it did represent a significant inadvertent change in the economics of the network relative to where things left off on L1 and reduced rewards for orchestrators and delegators in an unexpected way counter to expectations set in the LIP-73 specification [3]. With this in mind, the core team moved forward with a fix swiftly to resolve this issue for the community as soon as possible.
[1] Contract Address 0xc20DE37170B45774e6CD3d2304017fc962f27252 | Arbiscan
[2] Statement on the Governance Failsafes
[3] LIPs/LIP-73.md at master · livepeer/LIPs · GitHub