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+- Start Date: 2019-04-08
+- Target Major Version: 3.x
+- Reference Issues: N/A
+- Implementation PR: N/A
+
+# Summary
+
+- `h` is now globally imported instead of passed to render functions as argument
+
+- render function arguments changed and made consistent between stateful and functional components
+
+- VNodes now have a flat props structure
+
+# Basic example
+
+``` js
+// globally imported `h`
+import { h } from 'vue'
+
+export default {
+  render() {
+    return h(
+      'div',
+      // flat data structure
+      {
+        id: 'app',
+        onClick() {
+          console.log('hello')
+        }
+      },
+      [
+        h('span', 'child')
+      ]
+    )
+  }
+}
+```
+
+# Motivation
+
+In 2.x, VNodes are context-specific - which means every VNode created is bound to the component instance that created it (the "context"). This is because we need to support the following use cases (`h` is a conventional alias for `createElement`):
+
+``` js
+// looking up a component based on a string ID
+h('some-component')
+
+h('div', {
+  directives: [
+    {
+      name: 'foo', // looking up a directive by string ID
+      // ...
+    }
+  ]
+})
+```
+
+In order to look up locally/globally registered components and directives, we need to know the context component instance that "owns" the VNode. This is why in 2.x `h` is passed in as an argument, because the `h` passed into each render function is a curried version that is pre-bound to the context instance (as is `this.$createElement`).
+
+This has created a number of inconveniences, for example when trying to extract part of the render logic into a separate function, `h` needs to be passed along:
+
+``` js
+function renderSomething(h) {
+  return h('div')
+}
+
+export default {
+  render(h) {
+    return renderSomething(h)
+  }
+}
+```
+
+When using JSX, this is especially cumbersome since `h` is used implicitly and isn't needed in user code. Our JSX plugin has to perform automatic `h` injection in order to alleviate this, but the logic is complex and fragile.
+
+In 3.0 we have found ways to make VNodes context-free. They can now be created anywhere using the globally imported `h` function, so it only needs to be imported once in any file.
+
+---
+
+Another issue with 2.x's render function API is the nested VNode data structure:
+
+``` js
+h('div', {
+  class: ['foo', 'bar'],
+  style: { }
+  attrs: { id: 'foo' },
+  domProps: { innerHTML: '' },
+  on: { click: foo }
+})
+```
+
+This structure was inherited from Snabbdom, the original virtual dom implementation Vue 2.x was based on. The reason for this design was so that the diffing logic can be modular: an individual module (e.g. the `class` module) would only need to work on the `class` property. It is also more explicit what each binding will be processed as.
+
+However, over time we have noticed there are a number of drawbacks of the nested structure compared to a flat structure:
+
+- More verbose to write
+- `class` and `style` special cases are somewhat inconsistent
+- More memory usage (more objects allocated)
+- Slower to diff (each nested object needs its own iteration loop)
+- More complex / expensive to clone / merge / spread
+- Needs more special rules / implicit conversions when working with JSX
+
+In 3.x, we are moving towards a flat VNode data structure to address these problems.
+
+# Detailed design
+
+## Globally imported `h` function
+
+`h` is now globally imported:
+
+``` js
+import { h } from 'vue'
+
+export default {
+  render() {
+    return h('div')
+  }
+}
+```
+
+## Render Function Signature Change
+
+With `h` no longer needed as an argument, the `render` function now will no longer receive any arguments. In fact, in 3.0 the `render` option will mostly be used as an integration point for the render functions produced by the template compiler. For manual render functions, it is recommended to return it from the `setup()` function:
+
+``` js
+import { h, reactive } from 'vue'
+
+export default {
+  setup(props, { slots, attrs, emit }) {
+    const state = reactive({
+      count: 0
+    })
+
+    function increment() {
+      state.count++
+    }
+
+    // return the render function
+    return () => {
+      return h('div', {
+        onClick: increment
+      }, state.count)
+    }
+  }
+}
+```
+
+The render function returned from `setup()` naturally has access to reactive state and functions declared in scope, plus the arguments passed to setup:
+
+- `props` and `attrs` will be equivalent to `this.$props` and `this.$attrs` - also see [Optional Props Declaration](https://github.com/vuejs/rfcs/pull/25) and [Attribute Fallthrough](https://github.com/vuejs/rfcs/pull/92).
+
+- `slots` will be equivalent to `this.$slots` - also see [Slots Unification](https://github.com/vuejs/rfcs/pull/20).
+
+- `emit` will be equivalent to `this.$emit`.
+
+The `props`, `slots` and `attrs` objects here are proxies, so they will always be pointing to the latest values when used in render functions.
+
+For details on how `setup()` works, consult the [Composition API RFC](https://vue-composition-api-rfc.netlify.com/api.html#setup).
+
+## Functional Component Signature
+
+Note that the render function for a functional component will now also have the same signature, which makes it consistent in both stateful and functional components:
+
+``` js
+const FunctionalComp = (props, { slots, attrs, emit }) => {
+  // ...
+}
+```
+
+The new list of arguments should provide the ability to fully replace the current functional render context:
+
+- `props` and `slots` have equivalent values;
+- `data` and `children` are no longer necessary (just use `props` and `slots`);
+- `listeners` will be included in `attrs`;
+- `injections` can be replaced using the new `inject` API (part of [Composition API](https://vue-composition-api-rfc.netlify.com/api.html#provide-inject)):
+
+  ``` js
+  import { inject } from 'vue'
+  import { themeSymbol } from './ThemeProvider'
+
+  const FunctionalComp = props => {
+    const theme = inject(themeSymbol)
+    return h('div', `Using theme ${theme}`)
+  }
+  ```
+
+- `parent` access will be removed. This was an escape hatch for some internal use cases - in userland code, props and injections should be preferred.
+
+## Flat VNode Props Format
+
+``` js
+// before
+{
+  class: ['foo', 'bar'],
+  style: { color: 'red' },
+  attrs: { id: 'foo' },
+  domProps: { innerHTML: '' },
+  on: { click: foo },
+  key: 'foo'
+}
+
+// after
+{
+  class: ['foo', 'bar'],
+  style: { color: 'red' },
+  id: 'foo',
+  innerHTML: '',
+  onClick: foo,
+  key: 'foo'
+}
+```
+
+With the flat structure, the VNode props are handled using the following rules:
+
+- `key` and `ref` are reserved
+- `class` and `style` have the same API as 2.x
+- props that start with `on` are handled as `v-on` bindings, with everything after `on` being converted to all-lowercase as the event name (more on this below)
+- for anything else:
+  - If the key exists as a property on the DOM node, it is set as a DOM property;
+  - Otherwise it is set as an attribute.
+
+### Special "Reserved" Props
+
+There are two globally reserved props:
+
+- `key`
+- `ref`
+
+In addition, you can hook into the vnode lifecycle using reserved `onVnodeXXX` prefixed hooks:
+
+``` js
+h('div', {
+  onVnodeMounted(vnode) {
+    /* ... */
+  },
+  onVnodeUpdated(vnode, prevVnode) {
+    /* ... */
+  }
+})
+```
+
+These hooks are also how custom directives are built on top of. Since they start with `on`, they can also be declared with `v-on` in templates:
+
+``` html
+<div @vnodeMounted="() => { ... }">
+```
+
+---
+
+Due to the flat structure, `this.$attrs` inside a component now contains any raw props that are not explicitly declared by the component, including `class`, `style`, `onXXX` listeners and `vnodeXXX` hooks. This makes it much easier to write wrapper components - simply pass `this.$attrs` down with `v-bind="$attrs"`.
+
+## Context-free VNodes
+
+With VNodes being context-free, we can no longer use a string ID (e.g. `h('some-component')`) to implicitly lookup globally registered components. Same for looking up directives. Instead, we need to use an imported API:
+
+``` js
+import { h, resolveComponent, resolveDirective, withDirectives } from 'vue'
+
+export default {
+  render() {
+    const comp = resolveComponent('some-global-comp')
+    const fooDir = resolveDirective('foo')
+    const barDir = resolveDirective('bar')
+
+    // <some-global-comp v-foo="x" v-bar="y" />
+    return withDirectives(
+      h(comp),
+      [fooDir, this.x],
+      [barDir, this.y]
+    )
+  }
+}
+```
+
+This will mostly be used in compiler-generated output, since manually written render function code typically directly import the components and directives and use them by value.
+
+# Drawbacks
+
+## Reliance on Vue Core
+
+`h` being globally imported means any library that contains Vue components will include `import { h } from 'vue'` somewhere (this is implicitly included in render functions compiled from templates as well). This creates a bit of overhead since it requires library authors to properly configure the externalization of Vue in their build setup:
+
+- Vue should not be bundled into the library;
+- For module builds, the import should be left alone and be handled by the end user bundler;
+- For UMD / browser builds, it should try the global `Vue.h` first and fallback to `require` calls.
+
+This is common practice for React libs and possible with both webpack and Rollup. A decent number of Vue libs also already does this. We just need to provide proper documentation and tooling support.
+
+# Alternatives
+
+N/A
+
+# Adoption strategy
+
+- For template users this will not affect them at all.
+
+- For JSX users the impact will also be minimal, but we do need to rewrite our JSX plugin.
+
+- Users who manually write render functions using `h` will be subject to major migration cost. This should be a very small percentage of our user base, but we do need to provide a decent migration path.
+
+  - It's possible to provide a compat plugin that patches render functions and make them expose a 2.x compatible arguments, and can be turned off in each component for a one-at-a-time migration process.
+
+  - It's also possible to provide a codemod that auto-converts `h` calls to use the new VNode data format, since the mapping is pretty mechanical.
+
+- Functional components using context will likely have to be manually migrated, but a similar adaptor can be provided.
+
+# Unresolved Questions
+
+## Escape Hatches for Explicit Binding Types
+
+With the flat VNode data structure, how each property is handled internally becomes a bit implicit. This also creates a few problems - for example, how to explicitly set a non-existent DOM property, or listen to a CAPSCase event on a custom element?
+
+We may want to support explicit binding types via prefix:
+
+``` js
+h('div', {
+  'attr:id': 'foo',
+  'prop:__someCustomProperty__': { /*... */ },
+  'on:SomeEvent': e => { /* ... */ }
+})
+```
+
+This is equivalent to 2.x's nesting via `attrs`, `domProps` and `on`. However, this requires us to perform an extra check for every property being patched, which leads to a constant performance cost for a very niche use case. We may want to find a better way to deal with this.