Covenants

A covenant is a contract that carries its state from one UTXO to the next.

The state lives in the locking script, so each state results in its own P2SH address (see Compiling → Constructor args embed state). A transition spends the UTXO at the current address and creates a new output at a new address (which is derived from the newly created covenant state).

Calling a covenant entrypoint

Spend a covenant entrypoint with build_sig_script_for_covenant_decl, not build_sig_script. It finds the covenant's declaration entrypoint and builds the unlocking script for it:

contract = silverscript.compile(SOURCE, [current_count])
call = contract.build_sig_script_for_covenant_decl("add", [amount])

The is_leader keyword (default False) matters only for covenants that spend several UTXOs of the same covenant in one transition and pick one input as the leader. The leader input carries the entrypoint's arguments and runs the covenant's logic; the other inputs are delegates — they take no arguments and only prove they belong to the same covenant, deferring to the leader. Build the leader's unlocking script with is_leader=True and each delegate's with is_leader=False.

The Counter here never needs it. Its binding = auth compiles to a single entrypoint with no leader/delegate split, so is_leader is ignored — you reach for is_leader=True only when building the leader input of a multi-input covenant (binding = cov).

The rest is the same as a plain spend: the input's signature_script is the covenant call followed by the pushed redeem script (see Unlocking Scripts → Spending a locked UTXO).

State transition via transactions

Covenant state advances (transitions) via transactions on the Kaspa network. Actual on-chain side of a covenant is core kaspa work, not the compiler's. A transition is a transaction that:

1. Spends the current covenant UTXO, with the covenant call as its signature_script.
2. Creates a new output at the next state's address, carrying the covenant forward with a CovenantBinding so the chain keeps the same covenant id.

The first transaction (genesis) locks an ordinary funding UTXO into the initial state. It derives the covenant id with populate_genesis_covenants and a GenesisCovenantGroup. Every later transition reuses that id.

Worked example: Counter

examples/silverscript/counter.py runs the whole loop live on testnet-10. The contract holds one count in covenant state. Each spend is a 1:1 transition that updates the count and re-locks the funds:

genesis        count = 0
add(5)         count -> 5
subtract(3)    count -> 2

The contract:

pragma silverscript ^0.1.0;

contract Counter(int init_count) {
    int count = init_count;

    #[covenant(binding = auth, from = 1, to = 1, mode = transition)]
    function add(State prev_state, int amount) : (State) {
        return({ count: prev_state.count + amount });
    }

    #[covenant(binding = auth, from = 1, to = 1, mode = transition)]
    function subtract(State prev_state, int amount) : (State) {
        require(prev_state.count - amount >= 0);
        return({ count: prev_state.count - amount });
    }
}

A few things from the example worth noting:

• State is in the address. count = 0 and count = 5 are different scripts at different addresses. The example re-derives each address from the source and the count alone.
• No signing on the transition. The Counter checks no signature, so the unlocking script is just the covenant call plus the redeem script — the transition is permissionless. Only the genesis funding input (a normal P2PK UTXO) is signed.
• The covenant id carries over. Genesis derives it; each transition binds the new output to it with a CovenantBinding.

The compiler's role is small: compile the contract at the current count, and build the covenant call. Transaction building, fee sizing, covenant binding, and submission are all core kaspa — see Transactions.

Experimental

Covenants are the newest and least-settled part of SilverScript. Treat the contract above as a teaching example, not a template for production value. Verify everything on a test network first.