fix: distribution precompile 32-byte withdraw address inflates native supply

CHANGELOG.md

@@ -29,6 +29,7 @@
 - Enforce denom consistency in `GenesisState.Validate` with `Params.TokenDenom`
 - Limited tokenfactory queries, removing denial of service possibility
 - Indexed admins to reduce query space on tokenfactory denom queries
+- Fix native token supply inflation from the stateful precompiles by wrapping the account address codec (`evmAddressCodec`) to reject non-20-byte accounts (e.g. a 32-byte bech32 withdraw, module, or CosmWasm contract address) at decode time, preventing such addresses from being truncated and minted a duplicate balance when mirrored into the EVM StateDB
 
 ### Removed
 

app/keepers/precompiles.go

@@ -53,12 +53,38 @@ type Optionals struct {
 // defaultOptionals returns the default coded optionals
 func defaultOptionals() Optionals {
 	return Optionals{
-		AddressCodec:       addresscodec.NewBech32Codec(sdk.GetConfig().GetBech32AccountAddrPrefix()),
+		AddressCodec:       evmAddressCodec{addresscodec.NewBech32Codec(sdk.GetConfig().GetBech32AccountAddrPrefix())},
 		ValidatorAddrCodec: addresscodec.NewBech32Codec(sdk.GetConfig().GetBech32ValidatorAddrPrefix()),
 		ConsensusAddrCodec: addresscodec.NewBech32Codec(sdk.GetConfig().GetBech32ConsensusAddrPrefix()),
 	}
 }
 
+// evmAddressCodec wraps an account address codec and enforces that any decoded address is exactly
+// 20 bytes (a valid EVM account).
+//
+// The stateful EVM precompiles accept an account address (e.g. the distribution withdraw address)
+// and mirror the resulting bank transfer into the EVM StateDB via common.BytesToAddress, which is
+// keyed by a 20-byte address. A longer account (e.g. a 32-byte bech32 account) would be silently
+// truncated to its trailing 20 bytes during mirroring, causing the StateDB commit to mint a
+// duplicate balance to that trailing-20-byte account and inflate native supply. Rejecting any
+// non-20-byte address at decode time prevents such addresses from ever entering a mirrored flow.
+type evmAddressCodec struct {
+	address.Codec
+}
+
+// StringToBytes decodes the address with the wrapped codec and rejects any result that is not
+// exactly 20 bytes, so only EVM-compatible accounts reach the balance-mirroring precompiles.
+func (c evmAddressCodec) StringToBytes(text string) ([]byte, error) {
+	bz, err := c.Codec.StringToBytes(text)
+	if err != nil {
+		return nil, err
+	}
+	if len(bz) != common.AddressLength {
+		return nil, fmt.Errorf("invalid address %q: precompiles only accept 20-byte EVM accounts, got %d bytes", text, len(bz))
+	}
+	return bz, nil
+}
+
 // Option returns a funcion for the corresponding needed coded
 type Option func(opts *Optionals)
 

app/keepers/precompiles_test.go

@@ -0,0 +1,40 @@
+package keepers
+
+import (
+	"bytes"
+	"testing"
+
+	"github.com/ethereum/go-ethereum/common"
+	"github.com/stretchr/testify/require"
+
+	addresscodec "github.com/cosmos/cosmos-sdk/codec/address"
+)
+
+// TestEVMAddressCodecStringToBytes verifies that evmAddressCodec only accepts exactly-20-byte
+// accounts. A longer account (e.g. a 32-byte bech32 account) must be rejected at decode time so
+// it can never reach a balance-mirroring precompile and inflate native supply.
+func TestEVMAddressCodecStringToBytes(t *testing.T) {
+	inner := addresscodec.NewBech32Codec("kii")
+	codec := evmAddressCodec{inner}
+
+	// A 20-byte account decodes successfully and round-trips.
+	addr20 := bytes.Repeat([]byte{0xAB}, common.AddressLength)
+	str20, err := inner.BytesToString(addr20)
+	require.NoError(t, err)
+
+	got, err := codec.StringToBytes(str20)
+	require.NoError(t, err)
+	require.Equal(t, addr20, got)
+
+	// A 32-byte account is rejected.
+	addr32 := bytes.Repeat([]byte{0xCD}, 32)
+	str32, err := inner.BytesToString(addr32)
+	require.NoError(t, err)
+
+	_, err = codec.StringToBytes(str32)
+	require.Error(t, err)
+
+	// An invalid bech32 string is rejected by the wrapped codec.
+	_, err = codec.StringToBytes("not-a-valid-address")
+	require.Error(t, err)
+}

tests/e2e/genesis.go

@@ -101,17 +101,12 @@ func modifyGenesis(path, moniker, amountStr string, addrAll []sdk.AccAddress, de
 	}
 
 	icaGenesisState.HostGenesisState.Params.AllowMessages = []string{
-		"/cosmos.authz.v1beta1.MsgExec",
-		"/cosmos.authz.v1beta1.MsgGrant",
-		"/cosmos.authz.v1beta1.MsgRevoke",
 		"/cosmos.bank.v1beta1.MsgSend",
 		"/cosmos.bank.v1beta1.MsgMultiSend",
 		"/cosmos.distribution.v1beta1.MsgSetWithdrawAddress",
 		"/cosmos.distribution.v1beta1.MsgWithdrawValidatorCommission",
 		"/cosmos.distribution.v1beta1.MsgFundCommunityPool",
 		"/cosmos.distribution.v1beta1.MsgWithdrawDelegatorReward",
-		"/cosmos.feegrant.v1beta1.MsgGrantAllowance",
-		"/cosmos.feegrant.v1beta1.MsgRevokeAllowance",
 		"/cosmos.gov.v1beta1.MsgVoteWeighted",
 		"/cosmos.gov.v1beta1.MsgSubmitProposal",
 		"/cosmos.gov.v1beta1.MsgDeposit",
@@ -122,11 +117,6 @@ func modifyGenesis(path, moniker, amountStr string, addrAll []sdk.AccAddress, de
 		"/cosmos.staking.v1beta1.MsgBeginRedelegate",
 		"/cosmos.staking.v1beta1.MsgCreateValidator",
 		"/cosmos.vesting.v1beta1.MsgCreateVestingAccount",
-		"/ibc.applications.transfer.v1.MsgTransfer",
-		"/tendermint.liquidity.v1beta1.MsgCreatePool",
-		"/tendermint.liquidity.v1beta1.MsgSwapWithinBatch",
-		"/tendermint.liquidity.v1beta1.MsgDepositWithinBatch",
-		"/tendermint.liquidity.v1beta1.MsgWithdrawWithinBatch",
 	}
 
 	icaGenesisStateBz, err := cdc.MarshalJSON(&icaGenesisState)