feat(incentives): add protocol fee by 0xClandestine · Pull Request #1691 · Layr-Labs/eigenlayer-contracts

0xClandestine · 2026-01-06T18:13:03Z

Motivation:

We want to add a configurable protocol fee mechanism to the RewardsCoordinator contract to enable revenue generation. This allows reward submitters to opt into paying fees while maintaining backward compatibility with existing integrations.

Modifications:

Added protocolFee (fixed constant amount) and feeRecipient state variables
Implemented setOptInProtocolFee() for submitters to opt into fee payments
Implemented setFeeRecipient() (owner-only) to set the fee destination address

Result:

Submitters can voluntarily enable protocol fees on their reward distributions. When opted in, the fixed fee amount is deducted and sent to the designated recipient. Existing integrations continue working unchanged since fees are disabled by default.

src/contracts/core/RewardsCoordinator.sol

0xClandestine · 2026-01-07T18:02:30Z

ci failing from flakey unrelated test, disregard during review plz

src/contracts/core/storage/RewardsCoordinatorStorage.sol

src/contracts/core/RewardsCoordinator.sol

- used intra org no need for fees

elhajin · 2026-01-12T12:55:44Z

src/contracts/core/RewardsCoordinator.sol

        uint32 _activationDelay,
-        uint16 _defaultSplitBips
+        uint16 _defaultSplitBips,
+        address _feeRecipient


we need to use reinitializer here .. since we plan to call initialize when upgrade to set _feeRecipient .. or we plan to call the function setFeeRecipient after upgrade instead ??

You're right, should use reinitializer.

Another option: Don't add a re-initializer and just call the function as part of the atomic batch tx of the upgrade.

Would then need to re-add non-zero address checks. Keeping as-is for now.

elhajin · 2026-01-12T14:07:28Z

src/test/unit/RewardsCoordinatorUnit.t.sol

+
+        // 1. Set fee recipient to address(0)
+        cheats.prank(rewardsCoordinator.owner());
+        rewardsCoordinator.setFeeRecipient(address(0));


this test is failing here .. because you can't set a 0 address as feeRecipient
also the logic of that test seems wrong .. since feeRecipient should never be 0 ?

removed, outdated test 49510b9

elhajin · 2026-01-12T14:29:34Z

script/utils/ExistingDeploymentParser.sol

            0, // activationDelay
-            0 // defaultSplitBips
+            0, // defaultSplitBips
+            address(0) // feeRecipient


should add the feeRecipient param to both deployment scripts as well (devnet and local) .. that's why the deployFromScratch test is failing

ypatil12

Minor comments

src/contracts/core/EmissionsController.sol

ypatil12 · 2026-01-12T19:44:37Z

src/contracts/core/RewardsCoordinator.sol

            _validateRewardsSubmission(rewardsSubmission);

+            // Then transfer the full amount to the contract.
+            rewardsSubmission.token.safeTransferFrom(msg.sender, address(this), rewardsSubmission.amount);


Thoughts on moving all of this to a helper function and we just return the new rewardSubmission, nonce, and hash? Mainly for deduplication

If we do so, I'd want to cleanup the other methods as well. Right now they're implemented for readability since size isn't of massive concern.

Gotcha, fine as-is then

- adding fee amount doesn't make sense, this isn't RC

**Motivation:** We want to add a configurable protocol fee mechanism to the RewardsCoordinator contract to enable revenue generation. This allows reward submitters to opt into paying fees while maintaining backward compatibility with existing integrations. **Modifications:** - Added protocolFee (fixed constant amount) and feeRecipient state variables - Implemented setOptInProtocolFee() for submitters to opt into fee payments - Implemented setFeeRecipient() (owner-only) to set the fee destination address **Result:** Submitters can voluntarily enable protocol fees on their reward distributions. When opted in, the fixed fee amount is deducted and sent to the designated recipient. Existing integrations continue working unchanged since fees are disabled by default.

@0xClandestine

# v1.12.0 Incentive Council (ELIP-012) ## Release Manager @0xClandestine # Overview **Core Features** - **EmissionsController**: Mints EIGEN at a fixed inflation rate per epoch and distributes via gauge weights (bips 0-10,000) - **Permissionless Trigger**: Anyone can call `pressButton()` to process epoch emissions—no trusted keeper required - **5 Distribution Types**: - `RewardsForAllEarners` — Protocol-wide rewards for all delegated stake - `OperatorSetTotalStake` — Rewards proportional to total stake in operator set - `OperatorSetUniqueStake` — Rewards proportional to unique stake allocations - `EigenDA` — Special pathway for EigenDA (pre-OperatorSets AVS) - `Manual` — Off-chain computed distributions sent directly to Incentives Committee - **Silent Failure Handling**: Distribution failures don't block other distributions (except reentrancy/OOG attacks) - **Protocol Fee Mechanism**: Opt-in 20% fee on reward submissions in RewardsCoordinator - Disabled by default (backward compatible) - Submitters opt-in via `setOptInForProtocolFee()` - Fee recipient configurable by owner **Governance & Roles** - **Protocol Council**: Sets Incentives Committee address via `setIncentiveCouncil()` - **Incentives Committee**: - Configure distributions: `addDistribution()`, `updateDistribution()` - Receive swept tokens via `sweep()` - **AVSs**: Must grant EmissionsController permission for OperatorSet distributions **Key Design Points** - **Epoch-Based**: EIGEN minted once per epoch at `EMISSIONS_INFLATION_RATE` - **Future-Only Updates**: Distributions can only be added/updated for future epochs - **Immutable Config**: Inflation rate, start time, and epoch length set at deployment - **Pausable**: Both `pressButton()` and `sweep()` respect `PAUSED_TOKEN_FLOWS` flag - **Missed Epochs Skipped**: No accumulation—if `pressButton()` isn't called during an epoch, those emissions are permanently lost # Changelog - feat(incentives): add interface [#1678](#1678) - feat(incentives): add implementation [#1681](#1681) - feat(incentives): add protocol fee [#1691](#1691) - feat(incentives): add deploy scripts [#1699](#1699) - fix: internal review changes [#1703](#1703) - feat: add EigenDA rewards submission type [#1705](#1705) # Scope **New Contracts:** - `EmissionsController.sol` — Main implementation - `EmissionsControllerStorage.sol` — Storage layout - `IEmissionsController.sol` — Interface **Modified Contracts:** - `RewardsCoordinator.sol` — Added protocol fee mechanism and `createEigenDARewardsSubmission()` - `RewardsCoordinatorStorage.sol` — Added `PROTOCOL_FEE_BIPS`, `isOptedInForProtocolFee`, `feeRecipient`, `emissionsController` --------- Co-authored-by: Rajath Alex <rajathalex@gmail.com> Co-authored-by: eigenmikem <michael.muehl@eigenlabs.org> Co-authored-by: ELHAJ <124453227+elhajin@users.noreply.github.com> Co-authored-by: Cursor <cursoragent@cursor.com>

@0xClandestine

# v1.12.0 Incentive Council (ELIP-012) ## Release Manager @0xClandestine # Overview **Core Features** - **EmissionsController**: Mints EIGEN at a fixed inflation rate per epoch and distributes via gauge weights (bips 0-10,000) - **Permissionless Trigger**: Anyone can call `pressButton()` to process epoch emissions—no trusted keeper required - **5 Distribution Types**: - `RewardsForAllEarners` — Protocol-wide rewards for all delegated stake - `OperatorSetTotalStake` — Rewards proportional to total stake in operator set - `OperatorSetUniqueStake` — Rewards proportional to unique stake allocations - `EigenDA` — Special pathway for EigenDA (pre-OperatorSets AVS) - `Manual` — Off-chain computed distributions sent directly to Incentives Committee - **Silent Failure Handling**: Distribution failures don't block other distributions (except reentrancy/OOG attacks) - **Protocol Fee Mechanism**: Opt-in 20% fee on reward submissions in RewardsCoordinator - Disabled by default (backward compatible) - Submitters opt-in via `setOptInForProtocolFee()` - Fee recipient configurable by owner **Governance & Roles** - **Protocol Council**: Sets Incentives Committee address via `setIncentiveCouncil()` - **Incentives Committee**: - Configure distributions: `addDistribution()`, `updateDistribution()` - Receive swept tokens via `sweep()` - **AVSs**: Must grant EmissionsController permission for OperatorSet distributions **Key Design Points** - **Epoch-Based**: EIGEN minted once per epoch at `EMISSIONS_INFLATION_RATE` - **Future-Only Updates**: Distributions can only be added/updated for future epochs - **Immutable Config**: Inflation rate, start time, and epoch length set at deployment - **Pausable**: Both `pressButton()` and `sweep()` respect `PAUSED_TOKEN_FLOWS` flag - **Missed Epochs Skipped**: No accumulation—if `pressButton()` isn't called during an epoch, those emissions are permanently lost # Changelog - feat(incentives): add interface [#1678](#1678) - feat(incentives): add implementation [#1681](#1681) - feat(incentives): add protocol fee [#1691](#1691) - feat(incentives): add deploy scripts [#1699](#1699) - fix: internal review changes [#1703](#1703) - feat: add EigenDA rewards submission type [#1705](#1705) # Scope **New Contracts:** - `EmissionsController.sol` — Main implementation - `EmissionsControllerStorage.sol` — Storage layout - `IEmissionsController.sol` — Interface **Modified Contracts:** - `RewardsCoordinator.sol` — Added protocol fee mechanism and `createEigenDARewardsSubmission()` - `RewardsCoordinatorStorage.sol` — Added `PROTOCOL_FEE_BIPS`, `isOptedInForProtocolFee`, `feeRecipient`, `emissionsController`

0xClandestine changed the title ~~feat: add RewardsCoordinator protocol fee~~ feat(incentives): add protocol fee Jan 6, 2026

0xClandestine commented Jan 6, 2026

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src/contracts/core/RewardsCoordinator.sol Outdated Show resolved Hide resolved

0xClandestine commented Jan 6, 2026

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src/contracts/core/RewardsCoordinator.sol Outdated Show resolved Hide resolved

0xClandestine requested a review from ypatil12 January 6, 2026 20:48

0xClandestine mentioned this pull request Jan 6, 2026

feat(incentives): add implementation #1681

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0xClandestine force-pushed the feat/rewards-protocol-fee branch from 8933146 to 6eac771 Compare January 7, 2026 02:08

0xClandestine marked this pull request as ready for review January 7, 2026 02:09

ypatil12 reviewed Jan 7, 2026

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elhajin reviewed Jan 8, 2026

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src/contracts/core/RewardsCoordinator.sol Show resolved Hide resolved

src/contracts/core/RewardsCoordinator.sol Show resolved Hide resolved

Base automatically changed from feat/incentives-implementation to release-dev/incentive-council January 9, 2026 17:59

0xClandestine force-pushed the feat/rewards-protocol-fee branch from 15dd5f7 to a1f9bd8 Compare January 9, 2026 19:19

squash

d64c649

0xClandestine force-pushed the feat/rewards-protocol-fee branch from a1f9bd8 to d64c649 Compare January 9, 2026 19:21

revert rewards for all changes

c0723e7

- used intra org no need for fees

elhajin reviewed Jan 12, 2026

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0xClandestine added 2 commits January 12, 2026 11:39

passing (hopefully)

49510b9

reinitializer

7456ffa

0xClandestine requested a review from ypatil12 January 12, 2026 18:04

ypatil12 reviewed Jan 12, 2026

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remove todos

c2dba4d

- adding fee amount doesn't make sense, this isn't RC

elhajin approved these changes Jan 12, 2026

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ypatil12 approved these changes Jan 12, 2026

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0xClandestine merged commit b7a78d0 into release-dev/incentive-council Jan 12, 2026
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0xClandestine deleted the feat/rewards-protocol-fee branch January 12, 2026 21:06

0xClandestine mentioned this pull request Jan 22, 2026

feat: gauge weighted incentives and opt-in rewards fee #1704

Merged

0xClandestine mentioned this pull request Mar 5, 2026

feat: incentive council + duration vaults release #1740

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0xClandestine commented Jan 6, 2026 •

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