Destination of Slashed Funds in Basket Module Unclear

[kmlbgn]

PR #610 (commit c4d24761d78026f5ce8bdd707de74ec2c1e172c9) added new hooks to the basket module for handling validator slash events. However, it's not clear where the slashed funds go when the basket pool weight of a slashed validator is reduced. https://github.com/KiraCore/sekai/blob/c4d24761d78026f5ce8bdd707de74ec2c1e172c9/x/basket/keeper/hooks.go#L60-L81

As per KIP :

The slashed tokens, including KIRA's native token KEX, are transferred to a governance-controlled community spending pool where a decision can be made regarding their final fate

[kiragpg]

This is reducing the weight of an asset since that asset's value has been decreased from slashing underlying tokens. Therefore the slash handling should be actualy done in multistakingi module - not on basket module. Here's where it handles slashed tokens

func (k Keeper) SlashStakingPool(ctx sdk.Context, validator string, slash sdk.Dec) {
    pool, found := k.GetStakingPoolByValidator(ctx, validator)
    if !found {
        return
    }
    pool.Slashed = slash
    pool.Enabled = false

    totalStakingTokens := sdk.Coins{}
    for _, stakingToken := range pool.TotalStakingTokens {
        totalStakingTokens = totalStakingTokens.Add(sdk.NewCoin(stakingToken.Denom, sdk.NewDecFromInt(stakingToken.Amount).Mul(sdk.OneDec().Sub(pool.Slashed)).RoundInt()))
    }
    totalSlashedTokens := sdk.Coins(pool.TotalStakingTokens).Sub(totalStakingTokens...)
    pool.TotalStakingTokens = totalStakingTokens

    defaultDenom := k.sk.DefaultDenom(ctx)
    defaultDenomAmount := totalSlashedTokens.AmountOf(defaultDenom)
    burnAmount := sdk.Coins{sdk.NewCoin(defaultDenom, defaultDenomAmount)}
    err := k.bankKeeper.BurnCoins(ctx, types.ModuleName, burnAmount)
    if err != nil {
        panic(err)
    }

    treasurySendAmount := totalSlashedTokens.Sub(burnAmount...)
    err = k.bankKeeper.SendCoinsFromModuleToModule(ctx, types.ModuleName, authtypes.FeeCollectorName, treasurySendAmount)
    if err != nil {
        panic(err)
    }
    feesTreasury := k.distrKeeper.GetFeesTreasury(ctx)
    feesTreasury = feesTreasury.Add(treasurySendAmount...)
    k.distrKeeper.SetFeesTreasury(ctx, feesTreasury)

For KEX tokens it's burnt. For non-KEX tokens, it's sent to fees treasury that can be controlled by governance.