cosmos
diff --git a/Diff for: ‎.github/mergify.yml
+16 b/Diff for: ‎.github/mergify.yml
+16
diff --git a/Diff for: ‎.github/workflows/callbacks.yml
+1-1 b/Diff for: ‎.github/workflows/callbacks.yml
+1-1
diff --git a/Diff for: ‎.github/workflows/deploy-docs.yml
+1-1 b/Diff for: ‎.github/workflows/deploy-docs.yml
+1-1
diff --git a/Diff for: ‎.github/workflows/e2e-compatibility.yaml
-18 b/Diff for: ‎.github/workflows/e2e-compatibility.yaml
-18
diff --git a/Diff for: ‎.github/workflows/e2emodule.yml
+1-1 b/Diff for: ‎.github/workflows/e2emodule.yml
+1-1
diff --git a/Diff for: ‎.github/workflows/golangci-feature.yml
+1-1 b/Diff for: ‎.github/workflows/golangci-feature.yml
+1-1
diff --git a/Diff for: ‎.github/workflows/golangci.yml
+1-1 b/Diff for: ‎.github/workflows/golangci.yml
+1-1
diff --git a/Diff for: ‎.github/workflows/wasm-client.yml
+1-1 b/Diff for: ‎.github/workflows/wasm-client.yml
+1-1
diff --git a/Diff for: ‎CHANGELOG.md
+1 b/Diff for: ‎CHANGELOG.md
+1
diff --git a/Diff for: ‎README.md
+1-3 b/Diff for: ‎README.md
+1-3
diff --git a/Diff for: ‎RELEASES.md
+4-4 b/Diff for: ‎RELEASES.md
+4-4
diff --git a/Diff for: ‎docs/architecture/adr-008-app-caller-cbs.md
+10-4 b/Diff for: ‎docs/architecture/adr-008-app-caller-cbs.md
+10-4
diff --git a/Diff for: ‎docs/client/config.json
-8 b/Diff for: ‎docs/client/config.json
-8
@@ -38,6 +38,14 @@ pull_request_rules:
       backport:
         branches:
           - callbacks/release/v0.2.x+ibc-go-v8.0.x
+  - name: backport patches to v0.3.x callbacks ibc-go v10.0.x branch
+    conditions:
+      - base=main
+      - label=backport-callbacks-to-v0.3.x+ibc-go-v10.0.x
+    actions:
+      backport:
+        branches:
+          - callbacks/release/v0.3.x+ibc-go-v10.0.x
   - name: backport patches to v0.3.x wasm ibc-go v7.4.x & wasmvm 1.5.x branch
     conditions:
       - base=main
@@ -70,6 +78,14 @@ pull_request_rules:
       backport:
         branches:
           - 08-wasm/release/v0.5.x+ibc-go-v8.4.x-wasmvm-v2.1.x
+  - name: backport patches to v0.6.x wasm ibc-go v10.0.x & wasmvm 2.2.x branch
+    conditions:
+      - base=main
+      - label=backport-wasm-v0.6.x+ibc-go-v10.0.x-wasmvm-v2.2.x
+    actions:
+      backport:
+        branches:
+          - 08-wasm/release/v0.6.x+ibc-go-v10.0.x-wasmvm-v2.2.x
   - name: backport patches to v7.4.x branch
     conditions:
       - base=main
 
@@ -21,7 +21,7 @@ jobs:
       - uses: actions/checkout@v4
         with:
           fetch-depth: 0
-      - uses: golangci/golangci-lint-action@v6.2.0
+      - uses: golangci/golangci-lint-action@v6.5.0
         with:
           version: v1.62
           only-new-issues: true
 
@@ -27,7 +27,7 @@ jobs:
         run: make build-docs
 
       - name: Deploy 🚀
-        uses: JamesIves/[email protected].2
+        uses: JamesIves/[email protected].3
         with:
           branch: gh-pages
           folder: docs/build
 
@@ -236,24 +236,6 @@ jobs:
       test-file: "e2e/tests/transfer/send_receive_test.go"
       release-version: "${{ needs.determine-image-tag.outputs.release-version }}"
 
-  transfer-upgrades-v1-test:
-    needs:
-      - build-release-images
-      - determine-image-tag
-    uses: ./.github/workflows/e2e-compatibility-workflow-call.yaml
-    with:
-      test-file: "e2e/tests/transfer/upgradesv1_test.go"
-      release-version: "${{ needs.determine-image-tag.outputs.release-version }}"
-
-  transfer-upgrades-v2-test:
-    needs:
-      - build-release-images
-      - determine-image-tag
-    uses: ./.github/workflows/e2e-compatibility-workflow-call.yaml
-    with:
-      test-file: "e2e/tests/transfer/upgradesv2_test.go"
-      release-version: "${{ needs.determine-image-tag.outputs.release-version }}"
-
   upgrade-genesis-test:
     needs:
       - build-release-images
 
@@ -22,7 +22,7 @@ jobs:
       - uses: actions/checkout@v4
         with:
           fetch-depth: 0
-      - uses: golangci/golangci-lint-action@v6.2.0
+      - uses: golangci/golangci-lint-action@v6.5.0
         with:
           version: v1.62
           only-new-issues: true
 
@@ -27,7 +27,7 @@ jobs:
         with:
           fetch-depth: 0
       - name: golangci-lint
-        uses: golangci/golangci-lint-action@v6.2.0
+        uses: golangci/golangci-lint-action@v6.5.0
         with:
           version: v1.62
           only-new-issues: true
 
@@ -23,7 +23,7 @@ jobs:
         with:
           fetch-depth: 0
       - name: golangci-lint
-        uses: golangci/golangci-lint-action@v6.2.0
+        uses: golangci/golangci-lint-action@v6.5.0
         with:
           version: v1.62
           only-new-issues: true
 
@@ -20,7 +20,7 @@ jobs:
       - uses: actions/checkout@v4
         with:
           fetch-depth: 0
-      - uses: golangci/golangci-lint-action@v6.2.0
+      - uses: golangci/golangci-lint-action@v6.5.0
         with:
           version: v1.62
           only-new-issues: true
 
@@ -93,6 +93,7 @@ Ref: https://keepachangelog.com/en/1.0.0/
 ### State Machine Breaking
 
 * (light-clients/06-solomachine) [\#6313](https://github.com/cosmos/ibc-go/pull/6313) Fix: No-op to avoid panicking on `UpdateState` for invalid misbehaviour submissions.
+* (apps/callbacks) [\#8014](https://github.com/cosmos/ibc-go/pull/8014) Callbacks will now return an error acknowledgement if the recvPacket callback fails. This reverts all app callback changes whereas before we only reverted the callback changes. We also error on all callbacks if the callback data is set but malformed whereas before we ignored the error and continued processing.
 
 ### Improvements
 
 
@@ -122,9 +122,7 @@ The following audits have been performed on the `ibc-go` source code:
 
 3. **Middleware**
 
-   3.1 [ICS 29 Fee Middleware](https://github.com/cosmos/ibc-go/tree/main/modules/apps/29-fee)
-
-    3.2 [Callbacks Middleware](https://github.com/cosmos/ibc-go/tree/main/modules/apps/callbacks)
+    3.1 [Callbacks Middleware](https://github.com/cosmos/ibc-go/tree/main/modules/apps/callbacks)
 
 4. **Light Clients**
 
 
@@ -17,7 +17,7 @@ When bumping the dependencies of [Cosmos SDK](https://github.com/cosmos/cosmos-s
 
 [ibc-go](https://github.com/cosmos/ibc-go) and the [IBC protocol specification](https://github.com/cosmos/ibc) maintain different versions. Furthermore, ibc-go serves several different user groups (chains, IBC app developers, relayers, IBC light client developers). Each of these groups has different expectations of what *backwards compatible* means. It simply isn't possible to categorize a change as backwards or non backwards compatible for all user groups. We are primarily interested in when our API breaks and when changes are state machine breaking (thus requiring a coordinated upgrade). This is scoping the meaning of ibc-go to that of those interacting with the code (IBC app developers, relayers, IBC light client developers), not chains using IBC to communicate (that should be encapsulated by the IBC protocol specification versioning).
 
-To summarize: **All our ibc-go releases allow chains to communicate successfully with any chain running any version of our code**. That is to say, we are still using IBC protocol specification v1.0 (v10 will also include support for the IBC protocol specification v2.0 - also called IBC Eureka)
+To summarize: **All our ibc-go releases allow chains to communicate successfully with any chain running any version of our code**. That is to say, we are still using IBC protocol specification v1.0 (v10 will also include support for the IBC protocol specification v2.0)
 
 ## Release cycle
 
@@ -81,8 +81,8 @@ We reserve the right to drop support for releases if they are deemed unused (for
 
 |Release|End of Life Date|
 |-------|----------------|
-|`v0.1.x+ibc-go-v7.3.x`|March 17, 2025|
-|`v0.1.x+ibc-go-v8.0.x`|May 10, 2025|
+|`v0.2.x+ibc-go-v7.3.x`|March 17, 2025|
+|`v0.2.x+ibc-go-v8.0.x`|May 10, 2025|
 
 ### `08-wasm` light client proxy module
 
@@ -138,7 +138,7 @@ Versions of Golang, ibc-go, Cosmos SDK and CometBFT used by callbacks middleware
 
 | Go | callbacks | ibc-go | Cosmos SDK | Tendermint/CometBFT |
 |----|-----------|--------|------------|---------------------|
-| 1.19 | v0.1.0+ibc-go-v7.3 | v7.3.0 | v0.47.4 | v0.37.2 |
+| 1.19 | v0.2.0+ibc-go-v7.3 | v7.3.0 | v0.47.5 | v0.37.2 |
 | 1.21 | v0.2.0+ibc-go-v8.0 | v8.0.0 | v0.50.1 | v0.38.0 |
 
 ### `08-wasm` light client proxy module
 
@@ -5,6 +5,7 @@
 - 2022-08-10: Initial Draft
 - 2023-03-22: Merged
 - 2023-09-13: Updated with decisions made in implementation
+- 2025-02-24: RecvPacket callback error now returns error acknowledgement
 
 ## Status
 
@@ -245,10 +246,12 @@ type ContractKeeper interface {
 		version string,
 	) error
 	// IBCReceivePacketCallback is called in the destination chain when a packet acknowledgement is written.
-	// The contract is expected to handle the callback within the user defined gas limit, and handle any errors,
-	// out of gas, or panics gracefully.
-	// This entry point is called with a cached context. If an error is returned, then the changes in
-	// this context will not be persisted, but the packet lifecycle will not be blocked.
+	// The contract is expected to handle the callback within the user defined gas limit.
+	// This entry point is called with a cached context. If an error is returned, then the error
+	// will be written as an error acknowledgement. This will cause the context changes made by the contract
+	// to be reverted along with any state changes made by the underlying application.
+	// The error acknowledgement will then be relayed to the sending application which can perform
+	// its error acknowledgement logic (e.g. refunding tokens back to user)
 	//
 	// The version provided is the base application version for the given packet send. This allows
 	// contracts to determine how to unmarshal the packetData.
@@ -397,6 +400,9 @@ func (im IBCMiddleware) OnRecvPacket(
 		ctx, packet.GetDestPort(), packet.GetDestChannel(), packet.GetSequence(),
 		types.CallbackTypeReceivePacket, callbackData, err,
 	)
+	if err != nil {
+		return channeltypes.NewErrorAcknowledgement(err)
+	}
 
 	return ack
 }
 
@@ -30,14 +30,6 @@
         }
       }
     },
-    {
-      "url": "./tmp-swagger-gen/ibc/applications/fee/v1/query.swagger.json",
-      "operationIds": {
-        "rename": {
-          "Params": "FeeParams"
-        }
-      }
-    },
     {
       "url": "./tmp-swagger-gen/ibc/core/client/v1/query.swagger.json",
       "operationIds": {
Original file line number	Diff line number	Diff line change
`@@ -30,14 +30,6 @@`
`30`	`30`	`}`
`31`	`31`	`}`
`32`	`32`	`},`
`33`		`- {`
`34`		`- "url": "./tmp-swagger-gen/ibc/applications/fee/v1/query.swagger.json",`
`35`		`- "operationIds": {`
`36`		`- "rename": {`
`37`		`- "Params": "FeeParams"`
`38`		`- }`
`39`		`- }`
`40`		`- },`
`41`	`33`	`{`
`42`	`34`	`"url": "./tmp-swagger-gen/ibc/core/client/v1/query.swagger.json",`
`43`	`35`	`"operationIds": {`