From d96f1485092bfd5a12b5e26a2987d584db7bb518 Mon Sep 17 00:00:00 2001
From: Ankan <ankan.anurag@gmail.com>
Date: Mon, 24 Feb 2025 16:51:11 +0530
Subject: [PATCH 01/13] add filterlist to pool

---
 substrate/frame/nomination-pools/src/lib.rs   | 28 +++++++-
 substrate/frame/nomination-pools/src/mock.rs  | 19 +++++
 substrate/frame/nomination-pools/src/tests.rs | 70 +++++++++++++++++++
 3 files changed, 114 insertions(+), 3 deletions(-)

diff --git a/substrate/frame/nomination-pools/src/lib.rs b/substrate/frame/nomination-pools/src/lib.rs
index 39a7cf05b3aba..447f68a18d367 100644
--- a/substrate/frame/nomination-pools/src/lib.rs
+++ b/substrate/frame/nomination-pools/src/lib.rs
@@ -364,7 +364,7 @@ use frame_support::{
 	traits::{
 		fungible::{Inspect, InspectFreeze, Mutate, MutateFreeze},
 		tokens::{Fortitude, Preservation},
-		Defensive, DefensiveOption, DefensiveResult, DefensiveSaturating, Get,
+		Contains, Defensive, DefensiveOption, DefensiveResult, DefensiveSaturating, Get,
 	},
 	DefaultNoBound, PalletError,
 };
@@ -1729,6 +1729,9 @@ pub mod pallet {
 
 		/// Provider for the block number. Normally this is the `frame_system` pallet.
 		type BlockNumberProvider: BlockNumberProvider;
+
+		/// Restrict some accounts from participating in a nomination pool.
+		type Filter: Contains<Self::AccountId>;
 	}
 
 	/// The sum of funds across all pools.
@@ -2049,6 +2052,9 @@ pub mod pallet {
 		NotMigrated,
 		/// This call is not allowed in the current state of the pallet.
 		NotSupported,
+		/// Account is restricted from participation in pools. This may happen if the account is
+		/// staking in another way already.
+		Restricted,
 	}
 
 	#[derive(
@@ -2088,8 +2094,9 @@ pub mod pallet {
 
 	#[pallet::call]
 	impl<T: Config> Pallet<T> {
-		/// Stake funds with a pool. The amount to bond is transferred from the member to the pool
-		/// account and immediately increases the pools bond.
+		/// Stake funds with a pool. The amount to bond is delegated (or transferred based on
+		/// [`adapter::StakeStrategyType`]) from the member to the pool account and immediately
+		/// increases the pool's bond.
 		///
 		/// The method of transferring the amount to the pool account is determined by
 		/// [`adapter::StakeStrategyType`]. If the pool is configured to use
@@ -2114,6 +2121,9 @@ pub mod pallet {
 			// ensure pool is not in an un-migrated state.
 			ensure!(!Self::api_pool_needs_delegate_migration(pool_id), Error::<T>::NotMigrated);
 
+			// ensure account is not restricted from joining the pool.
+			ensure!(!T::Filter::contains(&who), Error::<T>::Restricted);
+
 			ensure!(amount >= MinJoinBond::<T>::get(), Error::<T>::MinimumBondNotMet);
 			// If a member already exists that means they already belong to a pool
 			ensure!(!PoolMembers::<T>::contains_key(&who), Error::<T>::AccountBelongsToOtherPool);
@@ -2182,6 +2192,9 @@ pub mod pallet {
 				Error::<T>::NotMigrated
 			);
 
+			// ensure account is not restricted from joining the pool.
+			ensure!(!T::Filter::contains(&who), Error::<T>::Restricted);
+
 			Self::do_bond_extra(who.clone(), who, extra)
 		}
 
@@ -2570,6 +2583,8 @@ pub mod pallet {
 			bouncer: AccountIdLookupOf<T>,
 		) -> DispatchResult {
 			let depositor = ensure_signed(origin)?;
+			// ensure depositor is not restricted from joining the pool.
+			ensure!(!T::Filter::contains(&depositor), Error::<T>::Restricted);
 
 			let pool_id = LastPoolId::<T>::try_mutate::<_, Error<T>, _>(|id| {
 				*id = id.checked_add(1).ok_or(Error::<T>::OverflowRisk)?;
@@ -2885,6 +2900,9 @@ pub mod pallet {
 				Error::<T>::NotMigrated
 			);
 
+			// ensure the member is not restricted from joining the pool.
+			ensure!(!T::Filter::contains(&member_account), Error::<T>::Restricted);
+
 			Self::do_bond_extra(who, member_account, extra)
 		}
 
@@ -3148,12 +3166,16 @@ pub mod pallet {
 		) -> DispatchResultWithPostInfo {
 			let _caller = ensure_signed(origin)?;
 
+			// ensure `DelegateStake` strategy is used.
 			ensure!(
 				T::StakeAdapter::strategy_type() == adapter::StakeStrategyType::Delegate,
 				Error::<T>::NotSupported
 			);
 
+			// ensure member is not restricted from joining the pool.
 			let member_account = T::Lookup::lookup(member_account)?;
+			ensure!(!T::Filter::contains(&member_account), Error::<T>::Restricted);
+
 			let member =
 				PoolMembers::<T>::get(&member_account).ok_or(Error::<T>::PoolMemberNotFound)?;
 
diff --git a/substrate/frame/nomination-pools/src/mock.rs b/substrate/frame/nomination-pools/src/mock.rs
index 88ef82a156200..b97d98d66948e 100644
--- a/substrate/frame/nomination-pools/src/mock.rs
+++ b/substrate/frame/nomination-pools/src/mock.rs
@@ -58,6 +58,7 @@ parameter_types! {
 	pub static MaxUnbonding: u32 = 8;
 	pub static StakingMinBond: Balance = 10;
 	pub storage Nominations: Option<Vec<AccountId>> = None;
+	pub static RestrictedAccounts: Vec<AccountId> = Vec::new();
 }
 pub struct StakingMock;
 
@@ -451,6 +452,13 @@ impl Convert<U256, Balance> for U256ToBalance {
 	}
 }
 
+pub struct RestrictMock;
+impl Contains<AccountId> for RestrictMock {
+	fn contains(who: &AccountId) -> bool {
+		RestrictedAccounts::get().contains(who)
+	}
+}
+
 parameter_types! {
 	pub static PostUnbondingPoolsWindow: u32 = 2;
 	pub static MaxMetadataLen: u32 = 2;
@@ -478,6 +486,7 @@ impl pools::Config for Runtime {
 	type MaxPointsToBalance = frame_support::traits::ConstU8<10>;
 	type AdminOrigin = EnsureSignedBy<Admin, AccountId>;
 	type BlockNumberProvider = System;
+	type Filter = RestrictMock;
 }
 
 type Block = frame_system::mocking::MockBlock<Runtime>;
@@ -713,6 +722,16 @@ pub fn pool_balance(id: PoolId) -> Balance {
 		.expect("who must be a bonded pool account")
 }
 
+pub fn add_to_restrict_list(who: &AccountId) {
+	if !RestrictedAccounts::get().contains(who) {
+		RestrictedAccounts::mutate(|l| l.push(*who));
+	}
+}
+
+pub fn remove_from_restrict_list(who: &AccountId) {
+	RestrictedAccounts::mutate(|l| l.retain(|x| x != who));
+}
+
 #[cfg(test)]
 mod test {
 	use super::*;
diff --git a/substrate/frame/nomination-pools/src/tests.rs b/substrate/frame/nomination-pools/src/tests.rs
index e2922e22fa989..9926e4bccb6f9 100644
--- a/substrate/frame/nomination-pools/src/tests.rs
+++ b/substrate/frame/nomination-pools/src/tests.rs
@@ -7568,3 +7568,73 @@ mod chill {
 		})
 	}
 }
+
+mod filter {
+	use super::*;
+
+	#[test]
+	fn restricted_accounts_cannot_join() {
+		ExtBuilder::default().build_and_execute(|| {
+			// GIVEN
+			let alice = 301;
+			Currency::set_balance(&alice, 20_000);
+
+			// WHEN alice is restricted from participating in pools
+			add_to_restrict_list(&alice);
+
+			// THEN alice cannot join any pool
+			assert_noop!(
+				Pools::join(RuntimeOrigin::signed(alice), 10, 1),
+				Error::<Runtime>::Restricted
+			);
+			// neither she can create a new pool
+			assert_noop!(
+				Pools::create(RuntimeOrigin::signed(alice), 1000, alice, alice, alice),
+				Error::<Runtime>::Restricted
+			);
+
+			// WHEN alice is removed from restricted accounts.
+			remove_from_restrict_list(&alice);
+
+			// THEN alice can join a pool
+			assert_ok!(Pools::join(RuntimeOrigin::signed(alice), 10, 1));
+
+			// WHEN alice is restricted while being in a pool
+			add_to_restrict_list(&alice);
+
+			// THEN she cannot bond extra funds to the pool
+			assert_noop!(
+				Pools::bond_extra(RuntimeOrigin::signed(alice), BondExtra::FreeBalance(10)),
+				Error::<Runtime>::Restricted
+			);
+			assert_noop!(
+				Pools::bond_extra(RuntimeOrigin::signed(alice), BondExtra::Rewards),
+				Error::<Runtime>::Restricted
+			);
+			// nor anyone else can bond her rewards on her behalf
+			assert_noop!(
+				Pools::bond_extra_other(RuntimeOrigin::signed(20), alice, BondExtra::Rewards),
+				Error::<Runtime>::Restricted
+			);
+
+			// but she can claim rewards
+			deposit_rewards(10);
+			assert_ok!(Pools::claim_payout(RuntimeOrigin::signed(alice)));
+			// someone else can claim rewards on her behalf
+			deposit_rewards(10);
+			assert_ok!(Pools::claim_payout_other(RuntimeOrigin::signed(20), alice));
+			// can unbond
+			assert_ok!(Pools::unbond(RuntimeOrigin::signed(alice), alice, 5));
+			// and withdraw
+			CurrentEra::set(3);
+			assert_ok!(Pools::withdraw_unbonded(RuntimeOrigin::signed(alice), alice, 0));
+
+			// WHEN alice is removed from restrict list
+			remove_from_restrict_list(&alice);
+
+			// THEN she can bond extra funds to the pool
+			assert_ok!(Pools::bond_extra(RuntimeOrigin::signed(alice), BondExtra::FreeBalance(10)));
+			assert_ok!(Pools::bond_extra(RuntimeOrigin::signed(alice), BondExtra::Rewards));
+		});
+	}
+}

From 07266b603fe37a9837361dea25d4992cb0f639b3 Mon Sep 17 00:00:00 2001
From: Ankan <ankan.anurag@gmail.com>
Date: Mon, 24 Feb 2025 17:46:41 +0530
Subject: [PATCH 02/13] add the pool filter to runtimes

---
 polkadot/runtime/westend/src/lib.rs           |  3 +-
 substrate/bin/node/runtime/src/lib.rs         |  1 +
 substrate/frame/delegated-staking/src/lib.rs  | 10 ---
 substrate/frame/delegated-staking/src/mock.rs |  1 +
 .../frame/delegated-staking/src/tests.rs      | 66 ++++++++-----------
 .../test-staking-e2e/src/mock.rs              |  4 +-
 .../nomination-pools/benchmarking/src/mock.rs |  3 +-
 .../test-delegate-stake/src/mock.rs           |  3 +-
 substrate/frame/staking/src/lib.rs            | 20 +++++-
 9 files changed, 57 insertions(+), 54 deletions(-)

diff --git a/polkadot/runtime/westend/src/lib.rs b/polkadot/runtime/westend/src/lib.rs
index 5af67ad9bd70a..aa0bb2e42e71c 100644
--- a/polkadot/runtime/westend/src/lib.rs
+++ b/polkadot/runtime/westend/src/lib.rs
@@ -37,7 +37,7 @@ use frame_support::{
 	traits::{
 		fungible::HoldConsideration, tokens::UnityOrOuterConversion, ConstU32, Contains, EitherOf,
 		EitherOfDiverse, EnsureOriginWithArg, EverythingBut, FromContains, InstanceFilter,
-		KeyOwnerProofSystem, LinearStoragePrice, ProcessMessage, ProcessMessageError,
+		KeyOwnerProofSystem, LinearStoragePrice, Nothing, ProcessMessage, ProcessMessageError,
 		VariantCountOf, WithdrawReasons,
 	},
 	weights::{ConstantMultiplier, WeightMeter, WeightToFee as _},
@@ -1547,6 +1547,7 @@ impl pallet_nomination_pools::Config for Runtime {
 	type MaxPointsToBalance = MaxPointsToBalance;
 	type AdminOrigin = EitherOf<EnsureRoot<AccountId>, StakingAdmin>;
 	type BlockNumberProvider = System;
+	type Filter = Nothing;
 }
 
 parameter_types! {
diff --git a/substrate/bin/node/runtime/src/lib.rs b/substrate/bin/node/runtime/src/lib.rs
index 7e33f1feeca19..77159ba1ebe90 100644
--- a/substrate/bin/node/runtime/src/lib.rs
+++ b/substrate/bin/node/runtime/src/lib.rs
@@ -1236,6 +1236,7 @@ impl pallet_nomination_pools::Config for Runtime {
 		pallet_collective::EnsureProportionAtLeast<AccountId, CouncilCollective, 3, 4>,
 	>;
 	type BlockNumberProvider = System;
+	type Filter = Nothing;
 }
 
 parameter_types! {
diff --git a/substrate/frame/delegated-staking/src/lib.rs b/substrate/frame/delegated-staking/src/lib.rs
index fadc8d290d6f9..6df5a6b3eb569 100644
--- a/substrate/frame/delegated-staking/src/lib.rs
+++ b/substrate/frame/delegated-staking/src/lib.rs
@@ -308,9 +308,6 @@ pub mod pallet {
 			// Existing `agent` cannot register again and a delegator cannot become an `agent`.
 			ensure!(!Self::is_agent(&who) && !Self::is_delegator(&who), Error::<T>::NotAllowed);
 
-			// They cannot be already a direct staker in the staking pallet.
-			ensure!(!Self::is_direct_staker(&who), Error::<T>::AlreadyStaking);
-
 			// Reward account cannot be same as `agent` account.
 			ensure!(reward_account != who, Error::<T>::InvalidRewardDestination);
 
@@ -407,7 +404,6 @@ pub mod pallet {
 			// Ensure delegator is sane.
 			ensure!(!Self::is_agent(&delegator), Error::<T>::NotAllowed);
 			ensure!(!Self::is_delegator(&delegator), Error::<T>::NotAllowed);
-			ensure!(!Self::is_direct_staker(&delegator), Error::<T>::AlreadyStaking);
 
 			// ensure agent is sane.
 			ensure!(Self::is_agent(&agent), Error::<T>::NotAgent);
@@ -442,12 +438,6 @@ pub mod pallet {
 				Error::<T>::InvalidDelegation
 			);
 
-			// Implementation note: Staking uses deprecated locks (similar to freeze) which are not
-			// mutually exclusive of holds. This means, if we allow delegating for existing stakers,
-			// already staked funds might be reused for delegation. We avoid that by just blocking
-			// this.
-			ensure!(!Self::is_direct_staker(&delegator), Error::<T>::AlreadyStaking);
-
 			// ensure agent is sane.
 			ensure!(Self::is_agent(&agent), Error::<T>::NotAgent);
 
diff --git a/substrate/frame/delegated-staking/src/mock.rs b/substrate/frame/delegated-staking/src/mock.rs
index 003d3380f6681..e874451a15f23 100644
--- a/substrate/frame/delegated-staking/src/mock.rs
+++ b/substrate/frame/delegated-staking/src/mock.rs
@@ -164,6 +164,7 @@ impl pallet_nomination_pools::Config for Runtime {
 		pallet_nomination_pools::adapter::DelegateStake<Self, Staking, DelegatedStaking>;
 	type AdminOrigin = frame_system::EnsureRoot<Self::AccountId>;
 	type BlockNumberProvider = System;
+	type Filter = pallet_staking::AllStakers<Runtime>;
 }
 
 frame_support::construct_runtime!(
diff --git a/substrate/frame/delegated-staking/src/tests.rs b/substrate/frame/delegated-staking/src/tests.rs
index c764e2741a2a4..aa7e79f59fa3b 100644
--- a/substrate/frame/delegated-staking/src/tests.rs
+++ b/substrate/frame/delegated-staking/src/tests.rs
@@ -65,31 +65,6 @@ fn cannot_become_agent() {
 			DelegatedStaking::register_agent(RawOrigin::Signed(100).into(), 100),
 			Error::<T>::InvalidRewardDestination
 		);
-
-		// an existing validator cannot become agent
-		assert_noop!(
-			DelegatedStaking::register_agent(
-				RawOrigin::Signed(mock::GENESIS_VALIDATOR).into(),
-				100
-			),
-			Error::<T>::AlreadyStaking
-		);
-
-		// an existing direct staker to `CoreStaking` cannot become an agent.
-		assert_noop!(
-			DelegatedStaking::register_agent(
-				RawOrigin::Signed(mock::GENESIS_NOMINATOR_ONE).into(),
-				100
-			),
-			Error::<T>::AlreadyStaking
-		);
-		assert_noop!(
-			DelegatedStaking::register_agent(
-				RawOrigin::Signed(mock::GENESIS_NOMINATOR_TWO).into(),
-				100
-			),
-			Error::<T>::AlreadyStaking
-		);
 	});
 }
 
@@ -637,18 +612,6 @@ mod staking_integration {
 				DelegatedStaking::register_agent(RawOrigin::Signed(202).into(), 203),
 				Error::<T>::NotAllowed
 			);
-			// existing staker cannot become a delegate
-			assert_noop!(
-				DelegatedStaking::register_agent(
-					RawOrigin::Signed(GENESIS_NOMINATOR_ONE).into(),
-					201
-				),
-				Error::<T>::AlreadyStaking
-			);
-			assert_noop!(
-				DelegatedStaking::register_agent(RawOrigin::Signed(GENESIS_VALIDATOR).into(), 201),
-				Error::<T>::AlreadyStaking
-			);
 		});
 	}
 
@@ -1390,7 +1353,7 @@ mod pool_integration {
 			// The delegator cannot add any extra bond to the pool anymore.
 			assert_noop!(
 				Pools::bond_extra(RawOrigin::Signed(delegator).into(), BondExtra::FreeBalance(100)),
-				Error::<T>::AlreadyStaking
+				PoolsError::<T>::Restricted
 			);
 
 			// But they can unbond
@@ -1401,6 +1364,33 @@ mod pool_integration {
 		});
 	}
 
+	#[test]
+	fn stakers_cannot_join_pool() {
+		ExtBuilder::default().build_and_execute(|| {
+			start_era(1);
+			// GIVEN: a pool.
+			fund(&200, 1000);
+			let pool_id = create_pool(200, 800);
+
+			// WHEN: an account is a staker.
+			let staker = 100;
+			fund(&staker, 1000);
+
+			assert_ok!(Staking::bond(
+				RuntimeOrigin::signed(staker),
+				500,
+				RewardDestination::Account(101)
+			));
+			assert_ok!(Staking::nominate(RuntimeOrigin::signed(staker), vec![GENESIS_VALIDATOR]));
+
+			// THEN: they cannot join pool.
+			assert_noop!(
+				Pools::join(RawOrigin::Signed(staker).into(), 200, pool_id),
+				PoolsError::<T>::Restricted
+			);
+		});
+	}
+
 	fn create_pool(creator: AccountId, amount: Balance) -> u32 {
 		fund(&creator, amount * 2);
 		assert_ok!(Pools::create(
diff --git a/substrate/frame/election-provider-multi-phase/test-staking-e2e/src/mock.rs b/substrate/frame/election-provider-multi-phase/test-staking-e2e/src/mock.rs
index 120deff96a75e..aa9b314d0068e 100644
--- a/substrate/frame/election-provider-multi-phase/test-staking-e2e/src/mock.rs
+++ b/substrate/frame/election-provider-multi-phase/test-staking-e2e/src/mock.rs
@@ -54,9 +54,8 @@ use pallet_staking::{ActiveEra, CurrentEra, ErasStartSessionIndex, StakerStatus}
 use parking_lot::RwLock;
 use std::sync::Arc;
 
-use frame_support::derive_impl;
-
 use crate::{log, log_current_time};
+use frame_support::{derive_impl, traits::Nothing};
 
 pub const INIT_TIMESTAMP: BlockNumber = 30_000;
 pub const BLOCK_TIME: BlockNumber = 1000;
@@ -290,6 +289,7 @@ impl pallet_nomination_pools::Config for Runtime {
 	type MaxPointsToBalance = frame_support::traits::ConstU8<10>;
 	type AdminOrigin = frame_system::EnsureRoot<Self::AccountId>;
 	type BlockNumberProvider = System;
+	type Filter = Nothing;
 }
 
 parameter_types! {
diff --git a/substrate/frame/nomination-pools/benchmarking/src/mock.rs b/substrate/frame/nomination-pools/benchmarking/src/mock.rs
index 2e73ad7cf4fc0..1dcfb86b75cf6 100644
--- a/substrate/frame/nomination-pools/benchmarking/src/mock.rs
+++ b/substrate/frame/nomination-pools/benchmarking/src/mock.rs
@@ -21,7 +21,7 @@ use frame_support::{
 	derive_impl,
 	pallet_prelude::*,
 	parameter_types,
-	traits::{ConstU64, VariantCountOf},
+	traits::{ConstU64, Nothing, VariantCountOf},
 	PalletId,
 };
 use sp_runtime::{
@@ -141,6 +141,7 @@ impl pallet_nomination_pools::Config for Runtime {
 	type MaxPointsToBalance = MaxPointsToBalance;
 	type AdminOrigin = frame_system::EnsureRoot<Self::AccountId>;
 	type BlockNumberProvider = System;
+	type Filter = Nothing;
 }
 
 parameter_types! {
diff --git a/substrate/frame/nomination-pools/test-delegate-stake/src/mock.rs b/substrate/frame/nomination-pools/test-delegate-stake/src/mock.rs
index 84d23a994e6e4..cc7ea7c029ba8 100644
--- a/substrate/frame/nomination-pools/test-delegate-stake/src/mock.rs
+++ b/substrate/frame/nomination-pools/test-delegate-stake/src/mock.rs
@@ -23,7 +23,7 @@ use frame_support::{
 	assert_ok, derive_impl,
 	pallet_prelude::*,
 	parameter_types,
-	traits::{ConstU64, ConstU8, VariantCountOf},
+	traits::{ConstU64, ConstU8, Nothing, VariantCountOf},
 	PalletId,
 };
 use frame_system::EnsureRoot;
@@ -270,6 +270,7 @@ impl pallet_nomination_pools::Config for Runtime {
 	type PalletId = PoolsPalletId;
 	type AdminOrigin = EnsureRoot<AccountId>;
 	type BlockNumberProvider = System;
+	type Filter = Nothing;
 }
 
 parameter_types! {
diff --git a/substrate/frame/staking/src/lib.rs b/substrate/frame/staking/src/lib.rs
index a5fe16e500b8f..6e8742e31c6e6 100644
--- a/substrate/frame/staking/src/lib.rs
+++ b/substrate/frame/staking/src/lib.rs
@@ -350,7 +350,7 @@ use frame_support::{
 	defensive, defensive_assert,
 	traits::{
 		tokens::fungible::{Credit, Debt},
-		ConstU32, Defensive, DefensiveMax, DefensiveSaturating, Get, LockIdentifier,
+		ConstU32, Contains, Defensive, DefensiveMax, DefensiveSaturating, Get, LockIdentifier,
 	},
 	weights::Weight,
 	BoundedVec, CloneNoBound, EqNoBound, PartialEqNoBound, RuntimeDebugNoBound, WeakBoundedVec,
@@ -1335,6 +1335,24 @@ impl<T: Config> EraInfo<T> {
 	}
 }
 
+/// A utility struct that provides a way to check if a given account is a staker.
+///
+/// This struct implements the `Contains` trait, allowing it to determine whether
+/// a particular account is currently staking by checking if the account exists in
+/// the staking ledger.
+pub struct AllStakers<T: Config>(core::marker::PhantomData<T>);
+
+impl<T: Config> Contains<T::AccountId> for AllStakers<T> {
+	/// Checks if the given account ID corresponds to a staker.
+	///
+	/// # Returns
+	/// - `true` if the account has an entry in the staking ledger (indicating it is staking).
+	/// - `false` otherwise.
+	fn contains(account: &T::AccountId) -> bool {
+		Ledger::<T>::contains_key(account)
+	}
+}
+
 /// Configurations of the benchmarking of the pallet.
 pub trait BenchmarkingConfig {
 	/// The maximum number of validators to use for snapshot creation.

From 428b491ac6b322b2378c5d03d66d3a0854187f4c Mon Sep 17 00:00:00 2001
From: =?UTF-8?q?Bastian=20K=C3=B6cher?= <info@kchr.de>
Date: Wed, 26 Feb 2025 16:58:35 +0100
Subject: [PATCH 03/13] Do not repeat yourself

---
 substrate/frame/nomination-pools/src/lib.rs | 14 ++++++--------
 1 file changed, 6 insertions(+), 8 deletions(-)

diff --git a/substrate/frame/nomination-pools/src/lib.rs b/substrate/frame/nomination-pools/src/lib.rs
index 447f68a18d367..1ecc636f8296b 100644
--- a/substrate/frame/nomination-pools/src/lib.rs
+++ b/substrate/frame/nomination-pools/src/lib.rs
@@ -2192,9 +2192,6 @@ pub mod pallet {
 				Error::<T>::NotMigrated
 			);
 
-			// ensure account is not restricted from joining the pool.
-			ensure!(!T::Filter::contains(&who), Error::<T>::Restricted);
-
 			Self::do_bond_extra(who.clone(), who, extra)
 		}
 
@@ -2583,8 +2580,6 @@ pub mod pallet {
 			bouncer: AccountIdLookupOf<T>,
 		) -> DispatchResult {
 			let depositor = ensure_signed(origin)?;
-			// ensure depositor is not restricted from joining the pool.
-			ensure!(!T::Filter::contains(&depositor), Error::<T>::Restricted);
 
 			let pool_id = LastPoolId::<T>::try_mutate::<_, Error<T>, _>(|id| {
 				*id = id.checked_add(1).ok_or(Error::<T>::OverflowRisk)?;
@@ -2900,9 +2895,6 @@ pub mod pallet {
 				Error::<T>::NotMigrated
 			);
 
-			// ensure the member is not restricted from joining the pool.
-			ensure!(!T::Filter::contains(&member_account), Error::<T>::Restricted);
-
 			Self::do_bond_extra(who, member_account, extra)
 		}
 
@@ -3504,6 +3496,9 @@ impl<T: Config> Pallet<T> {
 		bouncer: AccountIdLookupOf<T>,
 		pool_id: PoolId,
 	) -> DispatchResult {
+		// ensure depositor is not restricted from joining the pool.
+		ensure!(!T::Filter::contains(&who), Error::<T>::Restricted);
+
 		let root = T::Lookup::lookup(root)?;
 		let nominator = T::Lookup::lookup(nominator)?;
 		let bouncer = T::Lookup::lookup(bouncer)?;
@@ -3577,6 +3572,9 @@ impl<T: Config> Pallet<T> {
 		member_account: T::AccountId,
 		extra: BondExtra<BalanceOf<T>>,
 	) -> DispatchResult {
+		// ensure account is not restricted from joining the pool.
+		ensure!(!T::Filter::contains(&member_account), Error::<T>::Restricted);
+
 		if signer != member_account {
 			ensure!(
 				ClaimPermissions::<T>::get(&member_account).can_bond_extra(),

From c0d149d9b0fef9e82b5c113bc675534b1557010e Mon Sep 17 00:00:00 2001
From: Ankan <ankan.anurag@gmail.com>
Date: Wed, 26 Feb 2025 22:01:40 +0530
Subject: [PATCH 04/13] add way to filter some accounts to stake

---
 substrate/frame/staking/src/mock.rs       | 19 ++++++++
 substrate/frame/staking/src/pallet/mod.rs | 18 ++++++-
 substrate/frame/staking/src/tests.rs      | 59 +++++++++++++++++++++++
 3 files changed, 95 insertions(+), 1 deletion(-)

diff --git a/substrate/frame/staking/src/mock.rs b/substrate/frame/staking/src/mock.rs
index 43cff11d80427..4546dbf745946 100644
--- a/substrate/frame/staking/src/mock.rs
+++ b/substrate/frame/staking/src/mock.rs
@@ -319,6 +319,7 @@ parameter_types! {
 		(BalanceOf<Test>, BTreeMap<EraIndex, BalanceOf<Test>>) =
 		(Zero::zero(), BTreeMap::new());
 	pub static SlashObserver: BTreeMap<AccountId, BalanceOf<Test>> = BTreeMap::new();
+	pub static RestrictedAccounts: Vec<AccountId> = Vec::new();
 }
 
 pub struct EventListenerMock;
@@ -336,6 +337,13 @@ impl OnStakingUpdate<AccountId, Balance> for EventListenerMock {
 	}
 }
 
+pub struct MockedRestrictList;
+impl Contains<AccountId> for MockedRestrictList {
+	fn contains(who: &AccountId) -> bool {
+		RestrictedAccounts::get().contains(who)
+	}
+}
+
 // Disabling threshold for `UpToLimitDisablingStrategy` and
 // `UpToLimitWithReEnablingDisablingStrategy``
 pub(crate) const DISABLING_LIMIT_FACTOR: usize = 3;
@@ -367,6 +375,7 @@ impl crate::pallet::pallet::Config for Test {
 	type EventListeners = EventListenerMock;
 	type MaxInvulnerables = ConstU32<20>;
 	type MaxDisabledValidators = ConstU32<100>;
+	type Filter = MockedRestrictList;
 }
 
 pub struct WeightedNominationsQuota<const MAX: u32>;
@@ -1068,3 +1077,13 @@ pub(crate) fn to_bounded_supports(
 > {
 	supports.try_into().unwrap()
 }
+
+pub(crate) fn restrict(who: &AccountId) {
+	if !RestrictedAccounts::get().contains(who) {
+		RestrictedAccounts::mutate(|l| l.push(*who));
+	}
+}
+
+pub(crate) fn remove_from_restrict_list(who: &AccountId) {
+	RestrictedAccounts::mutate(|l| l.retain(|x| x != who));
+}
diff --git a/substrate/frame/staking/src/pallet/mod.rs b/substrate/frame/staking/src/pallet/mod.rs
index 6bd52e2bce166..02acb74691d16 100644
--- a/substrate/frame/staking/src/pallet/mod.rs
+++ b/substrate/frame/staking/src/pallet/mod.rs
@@ -28,7 +28,7 @@ use frame_support::{
 			hold::{Balanced as FunHoldBalanced, Mutate as FunHoldMutate},
 			Inspect, Mutate, Mutate as FunMutate,
 		},
-		Defensive, DefensiveSaturating, EnsureOrigin, EstimateNextNewSession, Get,
+		Nothing, Contains, Defensive, DefensiveSaturating, EnsureOrigin, EstimateNextNewSession, Get,
 		InspectLockableCurrency, OnUnbalanced, UnixTime,
 	},
 	weights::Weight,
@@ -331,6 +331,13 @@ pub mod pallet {
 		#[pallet::constant]
 		type MaxDisabledValidators: Get<u32>;
 
+		#[pallet::no_default_bounds]
+		/// Filter some accounts from participating in staking.
+		///
+		/// This is useful for example to blacklist an account that is participating in staking in
+		/// another way (such as pools).
+		type Filter: Contains<Self::AccountId>;
+
 		/// Some parameters of the benchmarking.
 		#[cfg(feature = "std")]
 		type BenchmarkingConfig: BenchmarkingConfig;
@@ -390,6 +397,7 @@ pub mod pallet {
 			type MaxInvulnerables = ConstU32<20>;
 			type MaxDisabledValidators = ConstU32<100>;
 			type EventListeners = ();
+			type Filter = Nothing;
 			#[cfg(feature = "std")]
 			type BenchmarkingConfig = crate::TestBenchmarkingConfig;
 			type WeightInfo = ();
@@ -1145,6 +1153,9 @@ pub mod pallet {
 		AlreadyMigrated,
 		/// Era not yet started.
 		EraNotStarted,
+		/// Account is restricted from participation in staking. This may happen if the account is
+		/// staking in another way already, such as via pool.
+		Restricted,
 	}
 
 	#[pallet::hooks]
@@ -1402,6 +1413,8 @@ pub mod pallet {
 		) -> DispatchResult {
 			let stash = ensure_signed(origin)?;
 
+			ensure!(!T::Filter::contains(&stash), Error::<T>::Restricted);
+
 			if StakingLedger::<T>::is_bonded(StakingAccount::Stash(stash.clone())) {
 				return Err(Error::<T>::AlreadyBonded.into())
 			}
@@ -1449,6 +1462,7 @@ pub mod pallet {
 			#[pallet::compact] max_additional: BalanceOf<T>,
 		) -> DispatchResult {
 			let stash = ensure_signed(origin)?;
+			ensure!(!T::Filter::contains(&stash), Error::<T>::Restricted);
 			Self::do_bond_extra(&stash, max_additional)
 		}
 
@@ -2032,6 +2046,8 @@ pub mod pallet {
 		) -> DispatchResultWithPostInfo {
 			let controller = ensure_signed(origin)?;
 			let ledger = Self::ledger(Controller(controller))?;
+
+			ensure!(!T::Filter::contains(&ledger.stash), Error::<T>::Restricted);
 			ensure!(!ledger.unlocking.is_empty(), Error::<T>::NoUnlockChunk);
 
 			let initial_unlocking = ledger.unlocking.len() as u32;
diff --git a/substrate/frame/staking/src/tests.rs b/substrate/frame/staking/src/tests.rs
index 64639648073ba..6649651483994 100644
--- a/substrate/frame/staking/src/tests.rs
+++ b/substrate/frame/staking/src/tests.rs
@@ -5040,6 +5040,65 @@ fn on_finalize_weight_is_nonzero() {
 	})
 }
 
+#[test]
+fn restricted_accounts_can_only_withdraw() {
+	ExtBuilder::default().build_and_execute(|| {
+		start_active_era(1);
+		// alice is a non blacklisted account.
+		let alice = 301;
+		let _ = Balances::make_free_balance_be(&alice, 500);
+		// alice can bond
+		assert_ok!(Staking::bond(RuntimeOrigin::signed(alice), 100, RewardDestination::Staked));
+		// and bob is a blacklisted account
+		let bob = 302;
+		let _ = Balances::make_free_balance_be(&bob, 500);
+		restrict(&bob);
+
+		// Bob cannot bond
+		assert_noop!(
+			Staking::bond(RuntimeOrigin::signed(bob), 100, RewardDestination::Staked,),
+			Error::<Test>::Restricted
+		);
+
+		// alice is blacklisted now and cannot bond anymore
+		restrict(&alice);
+		assert_noop!(
+			Staking::bond_extra(RuntimeOrigin::signed(alice), 100),
+			Error::<Test>::Restricted
+		);
+		// but she can unbond her existing bond
+		assert_ok!(Staking::unbond(RuntimeOrigin::signed(alice), 100));
+
+		// she cannot rebond the unbonded amount
+		start_active_era(2);
+		assert_noop!(Staking::rebond(RuntimeOrigin::signed(alice), 50), Error::<Test>::Restricted);
+
+		// move to era when alice fund can be withdrawn
+		start_active_era(4);
+		// alice can withdraw now
+		assert_ok!(Staking::withdraw_unbonded(RuntimeOrigin::signed(alice), 0));
+		// she still cannot bond
+		assert_noop!(
+			Staking::bond(RuntimeOrigin::signed(alice), 100, RewardDestination::Staked,),
+			Error::<Test>::Restricted
+		);
+
+		// bob is removed from restrict list
+		remove_from_restrict_list(&bob);
+		// bob can bond now
+		assert_ok!(Staking::bond(RuntimeOrigin::signed(bob), 100, RewardDestination::Staked));
+		// and bond extra
+		assert_ok!(Staking::bond_extra(RuntimeOrigin::signed(bob), 100));
+
+		start_active_era(6);
+		// unbond also works.
+		assert_ok!(Staking::unbond(RuntimeOrigin::signed(bob), 100));
+		// bob can withdraw as well.
+		start_active_era(9);
+		assert_ok!(Staking::withdraw_unbonded(RuntimeOrigin::signed(bob), 0));
+	})
+}
+
 mod election_data_provider {
 	use super::*;
 	use frame_election_provider_support::ElectionDataProvider;

From 867a8a31d0355e6879fcc8788c4e08a1994ca65b Mon Sep 17 00:00:00 2001
From: Ankan <ankan.anurag@gmail.com>
Date: Wed, 26 Feb 2025 22:05:59 +0530
Subject: [PATCH 05/13] Filter for AllPoolMembers

---
 substrate/frame/staking/src/pallet/mod.rs | 8 ++++++++
 1 file changed, 8 insertions(+)

diff --git a/substrate/frame/staking/src/pallet/mod.rs b/substrate/frame/staking/src/pallet/mod.rs
index 02acb74691d16..ea6dffae821e7 100644
--- a/substrate/frame/staking/src/pallet/mod.rs
+++ b/substrate/frame/staking/src/pallet/mod.rs
@@ -2606,3 +2606,11 @@ pub mod pallet {
 		}
 	}
 }
+
+/// A utility struct that provides a way to check if a given account is a pool member.
+pub struct AllPoolMembers<T: Config>(PhantomData<T>);
+impl<T: Config> Contains<T::AccountId> for AllPoolMembers<T> {
+	fn contains(t: &T::AccountId) -> bool {
+		PoolMembers::<T>::contains_key(t)
+	}
+}

From 8369662a6753490689f91aabb82bb1a9de136c18 Mon Sep 17 00:00:00 2001
From: Ankan <ankan.anurag@gmail.com>
Date: Wed, 26 Feb 2025 22:09:25 +0530
Subject: [PATCH 06/13] fmt

---
 substrate/frame/staking/src/pallet/mod.rs | 4 ++--
 1 file changed, 2 insertions(+), 2 deletions(-)

diff --git a/substrate/frame/staking/src/pallet/mod.rs b/substrate/frame/staking/src/pallet/mod.rs
index ea6dffae821e7..4efe0e5820a72 100644
--- a/substrate/frame/staking/src/pallet/mod.rs
+++ b/substrate/frame/staking/src/pallet/mod.rs
@@ -28,8 +28,8 @@ use frame_support::{
 			hold::{Balanced as FunHoldBalanced, Mutate as FunHoldMutate},
 			Inspect, Mutate, Mutate as FunMutate,
 		},
-		Nothing, Contains, Defensive, DefensiveSaturating, EnsureOrigin, EstimateNextNewSession, Get,
-		InspectLockableCurrency, OnUnbalanced, UnixTime,
+		Contains, Defensive, DefensiveSaturating, EnsureOrigin, EstimateNextNewSession, Get,
+		InspectLockableCurrency, Nothing, OnUnbalanced, UnixTime,
 	},
 	weights::Weight,
 	BoundedBTreeSet, BoundedVec,

From 65a1aca90b3c724d79a41ad16a14429d6e0749c8 Mon Sep 17 00:00:00 2001
From: Ankan <ankan.anurag@gmail.com>
Date: Wed, 26 Feb 2025 22:16:32 +0530
Subject: [PATCH 07/13] test fix: stakers cant stake and vice versa

---
 substrate/frame/delegated-staking/src/mock.rs |  1 +
 .../frame/delegated-staking/src/tests.rs      | 29 +++++--------------
 substrate/frame/nomination-pools/src/lib.rs   |  8 +++++
 substrate/frame/staking/src/pallet/mod.rs     |  8 -----
 4 files changed, 17 insertions(+), 29 deletions(-)

diff --git a/substrate/frame/delegated-staking/src/mock.rs b/substrate/frame/delegated-staking/src/mock.rs
index e874451a15f23..44068ee5a7f31 100644
--- a/substrate/frame/delegated-staking/src/mock.rs
+++ b/substrate/frame/delegated-staking/src/mock.rs
@@ -114,6 +114,7 @@ impl pallet_staking::Config for Runtime {
 	type VoterList = pallet_staking::UseNominatorsAndValidatorsMap<Self>;
 	type TargetList = pallet_staking::UseValidatorsMap<Self>;
 	type EventListeners = (Pools, DelegatedStaking);
+	type Filter = pallet_nomination_pools::AllPoolMembers<Self>;
 }
 
 parameter_types! {
diff --git a/substrate/frame/delegated-staking/src/tests.rs b/substrate/frame/delegated-staking/src/tests.rs
index aa7e79f59fa3b..05961d6f824db 100644
--- a/substrate/frame/delegated-staking/src/tests.rs
+++ b/substrate/frame/delegated-staking/src/tests.rs
@@ -1325,7 +1325,7 @@ mod pool_integration {
 	}
 
 	#[test]
-	fn existing_pool_member_can_stake() {
+	fn existing_pool_member_cannot_stake() {
 		// A pool member is able to stake directly since staking only uses free funds but once a
 		// staker, they cannot join/add extra bond to the pool. They can still withdraw funds.
 		ExtBuilder::default().build_and_execute(|| {
@@ -1339,28 +1339,15 @@ mod pool_integration {
 			fund(&delegator, 1000);
 			assert_ok!(Pools::join(RawOrigin::Signed(delegator).into(), 200, pool_id));
 
-			// THEN: they can still stake directly.
-			assert_ok!(Staking::bond(
-				RuntimeOrigin::signed(delegator),
-				500,
-				RewardDestination::Account(101)
-			));
-			assert_ok!(Staking::nominate(
-				RuntimeOrigin::signed(delegator),
-				vec![GENESIS_VALIDATOR]
-			));
-
-			// The delegator cannot add any extra bond to the pool anymore.
+			// THEN: they cannot stake anymore
 			assert_noop!(
-				Pools::bond_extra(RawOrigin::Signed(delegator).into(), BondExtra::FreeBalance(100)),
-				PoolsError::<T>::Restricted
+				Staking::bond(
+					RuntimeOrigin::signed(delegator),
+					500,
+					RewardDestination::Account(101)
+				),
+				StakingError::<T>::Restricted
 			);
-
-			// But they can unbond
-			assert_ok!(Pools::unbond(RawOrigin::Signed(delegator).into(), delegator, 50));
-			// and withdraw
-			start_era(4);
-			assert_ok!(Pools::withdraw_unbonded(RawOrigin::Signed(delegator).into(), delegator, 0));
 		});
 	}
 
diff --git a/substrate/frame/nomination-pools/src/lib.rs b/substrate/frame/nomination-pools/src/lib.rs
index 1ecc636f8296b..a62c4223b3b19 100644
--- a/substrate/frame/nomination-pools/src/lib.rs
+++ b/substrate/frame/nomination-pools/src/lib.rs
@@ -4244,3 +4244,11 @@ impl<T: Config> sp_staking::OnStakingUpdate<T::AccountId, BalanceOf<T>> for Pall
 		}
 	}
 }
+
+/// A utility struct that provides a way to check if a given account is a pool member.
+pub struct AllPoolMembers<T: Config>(PhantomData<T>);
+impl<T: Config> Contains<T::AccountId> for AllPoolMembers<T> {
+	fn contains(t: &T::AccountId) -> bool {
+		PoolMembers::<T>::contains_key(t)
+	}
+}
diff --git a/substrate/frame/staking/src/pallet/mod.rs b/substrate/frame/staking/src/pallet/mod.rs
index 4efe0e5820a72..a755cf3723f18 100644
--- a/substrate/frame/staking/src/pallet/mod.rs
+++ b/substrate/frame/staking/src/pallet/mod.rs
@@ -2606,11 +2606,3 @@ pub mod pallet {
 		}
 	}
 }
-
-/// A utility struct that provides a way to check if a given account is a pool member.
-pub struct AllPoolMembers<T: Config>(PhantomData<T>);
-impl<T: Config> Contains<T::AccountId> for AllPoolMembers<T> {
-	fn contains(t: &T::AccountId) -> bool {
-		PoolMembers::<T>::contains_key(t)
-	}
-}

From 5f1bf42e442d0f83578b81af252fb0d0d5e8c31a Mon Sep 17 00:00:00 2001
From: Ankan <ankan.anurag@gmail.com>
Date: Wed, 26 Feb 2025 22:54:13 +0530
Subject: [PATCH 08/13] add test for withdraw_overstake

---
 substrate/frame/staking/src/pallet/mod.rs | 35 +++++++++++++++++++
 substrate/frame/staking/src/tests.rs      | 42 ++++++++++++++++++++++-
 2 files changed, 76 insertions(+), 1 deletion(-)

diff --git a/substrate/frame/staking/src/pallet/mod.rs b/substrate/frame/staking/src/pallet/mod.rs
index a755cf3723f18..4e28c438804bf 100644
--- a/substrate/frame/staking/src/pallet/mod.rs
+++ b/substrate/frame/staking/src/pallet/mod.rs
@@ -2604,5 +2604,40 @@ pub mod pallet {
 
 			Ok(Pays::No.into())
 		}
+
+		/// Permissionlessly fixes the over-stake.
+		///
+		/// If a user has lower fund than their stake in the ledger, this function will fix the
+		/// over-stake to their actual staked funds.
+		///
+		/// This might be caused because of slashing of funds by another pallet.
+		#[pallet::call_index(32)]
+		#[pallet::weight(T::DbWeight::get().reads_writes(2, 1))]
+		pub fn withdraw_overstake(
+			origin: OriginFor<T>,
+			stash: T::AccountId,
+		) -> DispatchResultWithPostInfo {
+			let _ = ensure_signed(origin)?;
+
+			let ledger = Self::ledger(Stash(stash.clone()))?;
+			let actual_stake = asset::staked::<T>(&stash);
+			let force_withdraw_amount = ledger.total.defensive_saturating_sub(actual_stake);
+
+			// ensure there is something to force unstake.
+			ensure!(!force_withdraw_amount.is_zero(), Error::<T>::BoundNotMet);
+
+			// we ignore if active is 0. It implies the locked amount is not actively staked. The
+			// account can still get away from potential slash, but we can't do much better here.
+			StakingLedger {
+				total: actual_stake,
+				active: ledger.active.saturating_sub(force_withdraw_amount),
+				..ledger
+			}
+			.update()?;
+
+			Self::deposit_event(Event::<T>::Withdrawn { stash, amount: force_withdraw_amount });
+
+			Ok(Pays::No.into())
+		}
 	}
 }
diff --git a/substrate/frame/staking/src/tests.rs b/substrate/frame/staking/src/tests.rs
index 6649651483994..93070aa2067fc 100644
--- a/substrate/frame/staking/src/tests.rs
+++ b/substrate/frame/staking/src/tests.rs
@@ -49,7 +49,7 @@ use sp_runtime::{
 };
 use sp_staking::{
 	offence::{OffenceDetails, OnOffenceHandler},
-	SessionIndex, StakingInterface,
+	SessionIndex, Stake, StakingInterface,
 };
 use substrate_test_utils::assert_eq_uvec;
 
@@ -5099,6 +5099,46 @@ fn restricted_accounts_can_only_withdraw() {
 	})
 }
 
+#[test]
+fn permissionless_withdraw_overstake() {
+	ExtBuilder::default().build_and_execute(|| {
+		// Given Alice and Bob with some stake.
+		let alice = 301;
+		let bob = 302;
+		let _ = Balances::make_free_balance_be(&alice, 500);
+		let _ = Balances::make_free_balance_be(&bob, 500);
+		assert_ok!(Staking::bond(RuntimeOrigin::signed(alice), 100, RewardDestination::Staked));
+		assert_ok!(Staking::bond(RuntimeOrigin::signed(bob), 100, RewardDestination::Staked));
+
+		// WHEN: alice ledger having higher value than actual stake.
+		let overstaked_ledger = StakingLedger::<Test>::new(alice, 200);
+		Ledger::<Test>::insert(alice, overstaked_ledger);
+		System::reset_events();
+
+		// THEN overstake in alice account can be permissionlessly withdrawn.
+		assert_eq!(
+			<Staking as StakingInterface>::stake(&alice).unwrap(),
+			Stake { total: 200, active: 200 }
+		);
+		assert_ok!(Staking::withdraw_overstake(RuntimeOrigin::signed(1), alice));
+		assert_eq!(
+			<Staking as StakingInterface>::stake(&alice).unwrap(),
+			Stake { total: 100, active: 100 }
+		);
+
+		assert_eq!(
+			staking_events_since_last_call(),
+			vec![Event::Withdrawn { stash: alice, amount: 200 - 100 }]
+		);
+
+		// but Bob ledger is fine and that cannot be withdrawn.
+		assert_noop!(
+			Staking::withdraw_overstake(RuntimeOrigin::signed(1), bob),
+			Error::<Test>::BoundNotMet
+		);
+	});
+}
+
 mod election_data_provider {
 	use super::*;
 	use frame_election_provider_support::ElectionDataProvider;

From 099b4eb14e1210968ed443b8d28b16571b096cca Mon Sep 17 00:00:00 2001
From: Ankan <ankan.anurag@gmail.com>
Date: Wed, 26 Feb 2025 22:59:16 +0530
Subject: [PATCH 09/13] add missing config

---
 polkadot/runtime/test-runtime/src/lib.rs | 1 +
 polkadot/runtime/westend/src/lib.rs      | 1 +
 substrate/bin/node/runtime/src/lib.rs    | 1 +
 3 files changed, 3 insertions(+)

diff --git a/polkadot/runtime/test-runtime/src/lib.rs b/polkadot/runtime/test-runtime/src/lib.rs
index fc489e3bc685e..117aa849b133f 100644
--- a/polkadot/runtime/test-runtime/src/lib.rs
+++ b/polkadot/runtime/test-runtime/src/lib.rs
@@ -405,6 +405,7 @@ impl pallet_staking::Config for Runtime {
 	type MaxValidatorSet = MaxAuthorities;
 	type MaxInvulnerables = ConstU32<20>;
 	type MaxDisabledValidators = ConstU32<100>;
+	type Filter = frame_support::traits::Nothing;
 }
 
 parameter_types! {
diff --git a/polkadot/runtime/westend/src/lib.rs b/polkadot/runtime/westend/src/lib.rs
index aa0bb2e42e71c..59d6cc4e3f20a 100644
--- a/polkadot/runtime/westend/src/lib.rs
+++ b/polkadot/runtime/westend/src/lib.rs
@@ -772,6 +772,7 @@ impl pallet_staking::Config for Runtime {
 	type WeightInfo = weights::pallet_staking::WeightInfo<Runtime>;
 	type MaxInvulnerables = frame_support::traits::ConstU32<20>;
 	type MaxDisabledValidators = ConstU32<100>;
+	type Filter = Nothing;
 }
 
 impl pallet_fast_unstake::Config for Runtime {
diff --git a/substrate/bin/node/runtime/src/lib.rs b/substrate/bin/node/runtime/src/lib.rs
index 77159ba1ebe90..22e266cc18678 100644
--- a/substrate/bin/node/runtime/src/lib.rs
+++ b/substrate/bin/node/runtime/src/lib.rs
@@ -879,6 +879,7 @@ impl pallet_staking::Config for Runtime {
 	type BenchmarkingConfig = StakingBenchmarkingConfig;
 	type MaxInvulnerables = ConstU32<20>;
 	type MaxDisabledValidators = ConstU32<100>;
+	type Filter = Nothing;
 }
 
 impl pallet_fast_unstake::Config for Runtime {

From 1af96266ad98990ee9c3ba14d5b3a9cfac4d1dd5 Mon Sep 17 00:00:00 2001
From: Ankan <ankan.anurag@gmail.com>
Date: Wed, 26 Feb 2025 23:20:48 +0530
Subject: [PATCH 10/13] prdoc

---
 prdoc/pr_7685.prdoc | 14 ++++++++++++++
 1 file changed, 14 insertions(+)
 create mode 100644 prdoc/pr_7685.prdoc

diff --git a/prdoc/pr_7685.prdoc b/prdoc/pr_7685.prdoc
new file mode 100644
index 0000000000000..4242e150f2c9c
--- /dev/null
+++ b/prdoc/pr_7685.prdoc
@@ -0,0 +1,14 @@
+title: 'Introduce filters to restrict accounts from staking'
+
+doc:
+  - audience: Runtime Dev
+    description: |
+      Introduce filters to restrict accounts from staking.
+      This is useful for restricting certain accounts from staking, for example, accounts staking via pools, and vice
+      versa.
+
+crates:
+  - name: pallet-staking
+    bump: minor
+  - name: pallet-nomination-pools
+    bump: minor

From a439591da279425ff34180fc666475bbe4da38d9 Mon Sep 17 00:00:00 2001
From: Ankan <ankan.anurag@gmail.com>
Date: Wed, 26 Feb 2025 23:24:14 +0530
Subject: [PATCH 11/13] pr review

---
 substrate/frame/staking/src/pallet/mod.rs | 14 +++++++-------
 1 file changed, 7 insertions(+), 7 deletions(-)

diff --git a/substrate/frame/staking/src/pallet/mod.rs b/substrate/frame/staking/src/pallet/mod.rs
index 4e28c438804bf..043e57979283c 100644
--- a/substrate/frame/staking/src/pallet/mod.rs
+++ b/substrate/frame/staking/src/pallet/mod.rs
@@ -2605,18 +2605,18 @@ pub mod pallet {
 			Ok(Pays::No.into())
 		}
 
-		/// Permissionlessly fixes the over-stake.
+		/// Adjusts the staking ledger by withdrawing any excess staked amount.
 		///
-		/// If a user has lower fund than their stake in the ledger, this function will fix the
-		/// over-stake to their actual staked funds.
-		///
-		/// This might be caused because of slashing of funds by another pallet.
+		/// This function corrects cases where a user's recorded stake in the ledger
+		/// exceeds their actual staked funds. This situation can arise due to cases such as
+		/// external slashing by another pallet, leading to an inconsistency between the ledger
+		/// and the actual stake.
 		#[pallet::call_index(32)]
 		#[pallet::weight(T::DbWeight::get().reads_writes(2, 1))]
 		pub fn withdraw_overstake(
 			origin: OriginFor<T>,
 			stash: T::AccountId,
-		) -> DispatchResultWithPostInfo {
+		) -> DispatchResult {
 			let _ = ensure_signed(origin)?;
 
 			let ledger = Self::ledger(Stash(stash.clone()))?;
@@ -2637,7 +2637,7 @@ pub mod pallet {
 
 			Self::deposit_event(Event::<T>::Withdrawn { stash, amount: force_withdraw_amount });
 
-			Ok(Pays::No.into())
+			Ok(())
 		}
 	}
 }

From 84ab867d3383c036b84e59a50cb2a1ed2dc2bcfc Mon Sep 17 00:00:00 2001
From: Ankan <ankan.anurag@gmail.com>
Date: Wed, 26 Feb 2025 23:39:36 +0530
Subject: [PATCH 12/13] add partial withdrawing test

---
 substrate/frame/staking/src/pallet/mod.rs |  5 +--
 substrate/frame/staking/src/tests.rs      | 38 +++++++++++++++++++----
 2 files changed, 33 insertions(+), 10 deletions(-)

diff --git a/substrate/frame/staking/src/pallet/mod.rs b/substrate/frame/staking/src/pallet/mod.rs
index 043e57979283c..2514fbd2537d7 100644
--- a/substrate/frame/staking/src/pallet/mod.rs
+++ b/substrate/frame/staking/src/pallet/mod.rs
@@ -2613,10 +2613,7 @@ pub mod pallet {
 		/// and the actual stake.
 		#[pallet::call_index(32)]
 		#[pallet::weight(T::DbWeight::get().reads_writes(2, 1))]
-		pub fn withdraw_overstake(
-			origin: OriginFor<T>,
-			stash: T::AccountId,
-		) -> DispatchResult {
+		pub fn withdraw_overstake(origin: OriginFor<T>, stash: T::AccountId) -> DispatchResult {
 			let _ = ensure_signed(origin)?;
 
 			let ledger = Self::ledger(Stash(stash.clone()))?;
diff --git a/substrate/frame/staking/src/tests.rs b/substrate/frame/staking/src/tests.rs
index 93070aa2067fc..cde313d257705 100644
--- a/substrate/frame/staking/src/tests.rs
+++ b/substrate/frame/staking/src/tests.rs
@@ -5102,20 +5102,32 @@ fn restricted_accounts_can_only_withdraw() {
 #[test]
 fn permissionless_withdraw_overstake() {
 	ExtBuilder::default().build_and_execute(|| {
-		// Given Alice and Bob with some stake.
+		// Given Alice, Bob and Charlie with some stake.
 		let alice = 301;
 		let bob = 302;
+		let charlie = 303;
 		let _ = Balances::make_free_balance_be(&alice, 500);
 		let _ = Balances::make_free_balance_be(&bob, 500);
+		let _ = Balances::make_free_balance_be(&charlie, 500);
 		assert_ok!(Staking::bond(RuntimeOrigin::signed(alice), 100, RewardDestination::Staked));
 		assert_ok!(Staking::bond(RuntimeOrigin::signed(bob), 100, RewardDestination::Staked));
+		assert_ok!(Staking::bond(RuntimeOrigin::signed(charlie), 100, RewardDestination::Staked));
 
-		// WHEN: alice ledger having higher value than actual stake.
-		let overstaked_ledger = StakingLedger::<Test>::new(alice, 200);
-		Ledger::<Test>::insert(alice, overstaked_ledger);
+		// WHEN: charlie is partially unbonding.
+		assert_ok!(Staking::unbond(RuntimeOrigin::signed(charlie), 90));
+		let charlie_ledger = StakingLedger::<Test>::get(StakingAccount::Stash(charlie)).unwrap();
+
+		// AND: alice and charlie ledger having higher value than actual stake.
+		Ledger::<Test>::insert(alice, StakingLedger::<Test>::new(alice, 200));
+		Ledger::<Test>::insert(
+			charlie,
+			StakingLedger { stash: charlie, total: 200, active: 200 - 90, ..charlie_ledger },
+		);
+
+		// THEN overstake can be permissionlessly withdrawn.
 		System::reset_events();
 
-		// THEN overstake in alice account can be permissionlessly withdrawn.
+		// Alice stake is corrected.
 		assert_eq!(
 			<Staking as StakingInterface>::stake(&alice).unwrap(),
 			Stake { total: 200, active: 200 }
@@ -5126,9 +5138,23 @@ fn permissionless_withdraw_overstake() {
 			Stake { total: 100, active: 100 }
 		);
 
+		// Charlie who is partially withdrawing also gets their stake corrected.
+		assert_eq!(
+			<Staking as StakingInterface>::stake(&charlie).unwrap(),
+			Stake { total: 200, active: 110 }
+		);
+		assert_ok!(Staking::withdraw_overstake(RuntimeOrigin::signed(1), charlie));
+		assert_eq!(
+			<Staking as StakingInterface>::stake(&charlie).unwrap(),
+			Stake { total: 200 - 100, active: 110 - 100 }
+		);
+
 		assert_eq!(
 			staking_events_since_last_call(),
-			vec![Event::Withdrawn { stash: alice, amount: 200 - 100 }]
+			vec![
+				Event::Withdrawn { stash: alice, amount: 200 - 100 },
+				Event::Withdrawn { stash: charlie, amount: 200 - 100 }
+			]
 		);
 
 		// but Bob ledger is fine and that cannot be withdrawn.

From f2dd00dcc1937484edf110597023954de6048d13 Mon Sep 17 00:00:00 2001
From: Ankan <ankan.anurag@gmail.com>
Date: Thu, 27 Feb 2025 00:33:28 +0530
Subject: [PATCH 13/13] fmt

---
 prdoc/pr_7685.prdoc | 6 ++++++
 1 file changed, 6 insertions(+)

diff --git a/prdoc/pr_7685.prdoc b/prdoc/pr_7685.prdoc
index 4242e150f2c9c..23cb7b09297e9 100644
--- a/prdoc/pr_7685.prdoc
+++ b/prdoc/pr_7685.prdoc
@@ -12,3 +12,9 @@ crates:
     bump: minor
   - name: pallet-nomination-pools
     bump: minor
+  - name: westend-runtime
+    bump: patch
+  - name: pallet-delegated-staking
+    bump: patch
+  - name: pallet-nomination-pools-benchmarking
+    bump: patch