precompile/dead/README.md

Dead Precompile (LP-0150)

Address: Multiple (0x0, 0xdead, 0xdEaD...)
Gas Cost: 10,000 base
Status: Implemented

Overview

The Dead Precompile intercepts transfers to "dead" addresses (commonly used for token burns) and routes them to a 50/50 split between:

1. Actual Burn (50%) - Value is permanently destroyed (deflationary)
2. DAO Treasury (50%) - Value goes to Protocol-Owned Liquidity (POL)

This creates sustainable protocol revenue from burn activities instead of purely destroying value.

Registered Addresses

Address	Description	ConfigKey
0x0000000000000000000000000000000000000000	Zero address	deadZeroConfig
0x000000000000000000000000000000000000dEaD	Common dead address	deadConfig
0xdEaD000000000000000000000000000000000000	Full dead prefix	deadFullConfig

DAO Treasury

Funds are routed to: 0x9011E888251AB053B7bD1cdB598Db4f9DEd94714

This address is on X-Chain and accumulates protocol-owned liquidity.

Split Ratio

Component	Percentage	BPS
Burn	50%	5000
Treasury	50%	5000

When values cannot be split evenly (odd wei amounts), the treasury receives the extra wei.

Usage

Direct Interaction

The precompile is automatically invoked when calling or transferring to any registered dead address:

// Solidity - transfer to dead address triggers precompile
address payable dead = payable(0x000000000000000000000000000000000000dEaD);
dead.transfer(1 ether);
// Result: 0.5 ETH burned, 0.5 ETH to treasury

Programmatic Access

package main

import (
    "github.com/luxfi/precompile/dead"
    "math/big"
)

func main() {
    value := big.NewInt(1e18) // 1 ETH
    
    // Check if address is a dead address
    if dead.IsDeadAddress(addr) {
        burn, treasury := dead.CalculateSplit(value)
        // burn = 0.5 ETH
        // treasury = 0.5 ETH
    }
}

Mechanics

When a transaction targets a dead address:

1. EVM recognizes the address as a precompile
2. DeadPrecompile.Run() is invoked
3. The value (ETH sent) is split 50/50
4. 50% is left at the dead address (effectively burned)
5. 50% is transferred to DAO treasury
6. Transaction stats are recorded via event

Events

event DeadReceived(
    address indexed sender,
    address indexed deadAddress,
    uint256 totalValue,
    uint256 burnedAmount,
    uint256 treasuryAmount
);

Gas Costs

Operation	Gas
Base cost	10,000
With balance transfer	+21,000 (standard transfer)

Security Considerations

1. Deterministic Split: Split ratio is hardcoded (not configurable) to prevent manipulation
2. DAO Treasury: Uses a fixed address, governance changes require contract upgrade
3. Reentrancy: The precompile is stateless and doesn't call external contracts in a reentrant manner
4. Value Conservation: Total value always equals burn + treasury (verified in tests)

Files

File	Description
contract.go	Core precompile implementation
contract_test.go	Unit tests
module.go	Module registration
README.md	This documentation

Related

• LP-0150 - Full specification
• IDead.sol - Solidity interface